Redundancy Entitlements & Negotiations: Taylor Solicitors Cork

Posted on May 8, 2012 by Taylor Solicitors Cork

Click to Listen

Redundancy is fast becoming a reality for many employers and employees throughout Ireland.    In the past week Vita Cortex workers successfully concluded negotiations for redundancy payments after staging an almost five month sit-in.

Statutory Payments  

The statutory redundancy payment is a lump-sum payment based on the pay of the employee.  Qualifying  employees are entitled to:

  • Two weeks’ pay for every year of service over the age of 16 and
  • One further week’s pay

The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).

Additional Payments

In addition to statutory redundancy, an employee may be entitled to additional redundancy payments under their contract of employment.  This is what was essentially at the heart of the Vita Cortex dispute.  Under their contracts, employees were entitled to additional redundancy payments outside of the statutory redundancy.  However the employer claimed they were unable to meet these contractual obligations.

At Taylor Solicitors, we advise parties on both sides of the fence:  employers and employees. And not surprisingly we are seeing an increase in the level of disputes between employers and disgruntled employees.  To minimise potential liability employers should clearly establish redundancy rights and entitlements in employment contracts and ensure they follow good practice in redundancy selections and procedures.

From an employee’s perspective, there is no doubt there can be strength in numbers.  Even industries without a history of trade union representation can benefit from staff coming together to negotiate with management.  The accomplishments of the Vita Cortex employees support the contention that with enough Davids, even Goliath will waiver.

Find out more about employment law.

Taylor Solicitors Cork

Posted in Employment Law, Solicitors Cork | Leave a comment

Mortgage debt write-down a reality: Taylor Solicitors Cork

Posted on April 27, 2012 by Taylor Solicitors Cork

Click to Listen

The official word coming from virtually all banks is that there is no “debt forgiveness”… mortgages have to be repaid in full.  But in reality banks are open for negotiations.

In the past few days, a Bank of Ireland customer has secured a settlement on mortgage debt allowing her to repay the bank €18,000 – at a rate of €250 a month for six years – to settle an outstanding debt of €170,000.  Under the agreed settlement the customer will not have to repay the remaining €152,000 but she will be prohibited from borrowing for six years and faces a €120,000 judgment if she fails to make the repayments.

Bank of Ireland has confirmed it doesn’t have a policy of debt forgiveness and deals with borrowers in arrears on a case-by-case basis.  And in reality it is not as simple as handing back your keys and walking away.  Having said that, there is no doubt that banks will increasingly be forced to accept less than they are owed on residential mortgages.

Taylor Solicitors Cork

 

Posted in Property Law, Solicitors Cork | Leave a comment

Top Tips for Business Start-Ups: Taylor Solicitors Cork

Posted on April 23, 2012 by Taylor Solicitors Cork

Click to Listen

You’re taking the plunge and starting your own business.  It’s an exciting time with a steep learning curve.  Here are some of our top tips for success. 

1.            Start as you mean to go on

This relates to all aspects of your business – be it in how you deal with customers, employees or suppliers.  Set your stall early and clearly.   An ounce of prevention is worth a pound of cure.  Successful businesses put the time and effort into drafting clear Terms and Conditions to protect their interests to the fullest extent possible.  Think about how the ordering/supplying process will work.  What happens when things go wrong?  If you’re taking on staff is it on a temporary or permanent basis?  Do they have to work a probationary period? Have you complied with your obligations as an employer?  Do your research and take advice.

 

2.            Get familiar with your obligations to customers

There is a wide variety of Irish and European legislation in place to protect both business and non-business customers.  Know what customers are entitled to expect when dealing with you and your business.  Is there specific legislation that will particularly affect your type of business?  Are you selling your product or service online?  What about returns and warranty policies?

3.            Show me the money

Most people don’t start a business purely for the fun of it.  Even if you love what you do, you’re still in it to make money.  Before you start selling anything, clearly establish how and when you get paid for your product or service.  Is this clearly set out in quotes and Terms and Conditions?  Consider whether a Retention of Title policy could work for your business.   What procedure will be followed if a customer fails to pay on time?  Do you deliver your product or service before payment? 

4.            Whether you think you can or think you can’t, you’re probably right!

Okay. This last one is outside the legal arena but it’s still worth mentioning.  Every great business started as an idea buzzing around in someone’s head.  What generally transforms an idea into a successful business is discipline, hard work and perhaps most importantly – self-belief. 

So be your own biggest ally. Not only work towards success but expect it!

Taylor Solicitors Cork

 

Posted in Business General, Business Set-Up, Solicitors Cork | Leave a comment

Pack your bags, we’re leaving! – Taylor Solicitors Cork

Posted on April 2, 2012 by Taylor Solicitors Cork

Ireland has experienced one of Europe’s most dramatic property crashes in the last few years. Hundreds of thousands have been left saddled with properties that are in negative equity. But life goes on… couples that bought that one bed apartment now find themselves with two kids, no room and with a property in negativity equity.  Until recently, these families had no prospect of being able to move to a bigger home.  It is estimated that between 300,000 and 350,000 homeowners are burdened with negative equity properties here in Ireland.

There is however some light at the end of the tunnel. With the permission of the Central Bank, several banks have announced that they will offer new mortgages to customers allowing them to sell their negative equity property and move their mortgage to the new property being purchased.

The Central Bank has stated that stringent measures must be in place when approving these mortgages. This is to ensure that the mortgages are only offered to people who can make the payments; otherwise borrowers could fall into even deeper debt. There is also a requirement that customer’s current property must be sold before they can move the mortgage to their new property, however there is some flexibility regarding this. One of the most important factors is that the mortgage can only be given if what is owed is at most 25% greater than the value of the property. For example, if a person wishes to move to a two bedroom house valued at €100,000, the borrower can only owe a maximum of €125,000 (this would include transferring a negative equity of €25,000 from their first property).

In summary, there are clearly drawbacks to the new mortgages being offered, but for the ideal candidate, this may provide a much desired opportunity to move to a new home.

Taylor Solicitors Cork

Posted in Property Law, Solicitors Cork | Leave a comment

No Way, No Pay! – The Household Charge

Posted on March 28, 2012 by Taylor Solicitors Cork

Click to Listen

It seems the people of Ireland have finally had enough of tax increases and cutbacks and are using the Household Charge as a way to voice their opposition to the many austerity measures dealt by the Government.  As of yesterday, approximately 25% of households have registered to pay the household charge.  With only a few days to the deadline, this leaves over 1.3 million households that haven’t registered or paid.

The arguments against paying the household charge are convincing. People who bought or built property during the last 5 – 10 years have already paid thousands in stamp duty and financial contributions to the Government and local authorities.  Another tax on top of all of the tax increases and State cutbacks appears to be the final straw.  In addition, some would argue the introduction of a new type of tax is a road from which there is no return – if an annual property tax is accepted by the Irish people it will be here to stay with inevitable increases on the horizon.

So if the vast majority are choosing not to pay, what penalties are set out for non-payment of this tax?

Under current legislation, an owner of a residential property who doesn’t pay the Household Charge will incur late payment fees and late payment interest.

The late payment fee is as follows:

  •  not later than 6 months after the due date, is 10% of the amount outstanding;
  •  later than 6 months and not later than 12 months after the due date, is 20 % of the amount   outstanding; or
  • later than 12 months after the due date, is 30 % of the amount outstanding.

So, for example, if you don’t pay the household charge until January 2013 you’ll incur a late payment fee of €20.  You’ll also incur late payment interest of 1% per month.  In total if you don’t pay the household charge until January 2013 you’d incur a total penalty of €30.

Will these relatively minor penalties be enough to encourage the majority of house owners to pay the charge by the deadline?  Probably not.  It seems many people will let the March 31st deadline pass without paying the charge. 

It remains to be seen whether the Government will back down or insist on collecting payment from a people that are intent on sending a clear message to the politicians of Ireland.

Taylor Solicitors Cork 

 

Posted in Property Law, Solicitors Cork | Leave a comment

The Household Charge and unfinished Estates : Taylor Solicitors Cork

Posted on January 18, 2012 by Taylor Solicitors Cork

Household Charge

Many people who bought property in Ireland in the last few years may have paid thousands in stamp duty charges, may be paying NPPR charges and are now wondering are they really liable for this most recent property tax especially in situations where the relevant housing estate hasn’t been finished by the builder/developer. 

The Household Charge is an annual charge introduced by the Local Government (Household Charge) Act 2011 and is currently set at €100 for 2012.  The owner of a property on the 1st January 2012 (as opposed to the tenant in a property) is responsible for paying this charge and the charge must be paid by the 31st March 2012.  It can be paid online at https://www.householdcharge.ie/.  It can also be paid to the applicable City or County Council Office.

There are a number of situations where properties are exempt from the Household Charge.

In addition, property owners can claim a waiver if they are in receipt of mortgage interest supplement or if they are living in one of the many unfinished estates throughout the State.

A national survey of unfinished housing developments was carried out in 2011. A person who, on 1 January 2012, is an owner of a residential property in an unfinished development as set out by the Government is entitled to a waiver from payment of the household charge in 2012. Full details of the these properties can be found at https://www.householdcharge.ie/Faq.aspx#fk17

If you are an owner of one of these properties, you are still obliged to register for the charge, but you are entitled to a waiver for 2012.

Taylor Solicitors Cork

Find out more about how we can assist you with your property purchase

Find out more about us

 

Posted in Property Law, Solicitors Cork | Leave a comment

Taylor Solicitors Cork: First Time Buyers in 2012 and the recent Budget

Posted on January 5, 2012 by Taylor Solicitors Cork

First Time Buyers 2012 (video)

Under the current Revenue rules, there are three basic taxes/reliefs you should consider when looking at buying your first home in 2012.

Stamp Duty:  For residential purchases, stamp duty remained unchanged in the recent budget.  If you are buying a residential property for less than €1,000,000 you will incur stamp duty fees of 1%.  This 1% applies regardless of whether you are a first time buyer, owner occupier or investor.  Basically, it’s a straight 1% charge across the board.

Mortgage Interest Relief:  The budget did introduce some changes in the area of mortgage interest relief. Mortgage interest relief is tax relief given on the interest portion of your mortgage repayments.  Mortgage interest relief is only available for qualifying mortgages which includes a mortgage on your first home where you will be living in the property.

This relief is paid at source by your bank or building society.  This means that your bank will either reduce your monthly mortgage repayment or give you a separate credit payment into your bank account.  You do not have to be earning a taxable income to qualify for mortgage interest relief.

Tax relief is only available up to the maximum allowance.  The ceilings or upper thresholds on the amount of interest paid that qualifies for tax relief depend on whether you are single, married or in a civil partnership and also on whether you are a first time buyer.

As a first time buyer in 2012, if you are married/widowed/civil partnership the applicable tax ceiling is €20,000 per year for 7 years.  If you are unmarried and not in a civil partnership, the applicable tax ceiling is €10,000 per year for 7 years.

For the first two years of the mortgage repayments, you will get 25% relief, for years 3,4 and 5 you will get 22.5% relief and for years 6 and 7 you will get 20% relief.

It’s important to be aware that the Government is phasing out mortgage interest relief.  Mortgages taken out after 31st December 2012 will not qualify for mortgage interest relief.

Household Charge:  Finally, you’ve probably heard some details of the new Household Charge introduced by the Government in the budget.  This is a new property tax which comes into effect from the 1st January 2012.  The 2012 Household Charge amount has been set at €100 a year.  The Household Tax will have to be paid before March 31st in each year of liability to avoid penalty charges.  The method for assessing liability for this household charge is likely to change next year, but for now it is a standard €100 for each household.

Taylor Solicitors Cork homepage

Find out more about how we can assist First Time Buyers

Find out more about Budget 2012

Posted in First Time Homebuyers, Property Law, Solicitors Cork | Leave a comment

Taylor Solicitors Cork: The Rules and Regulations of Online Selling

Posted on December 14, 2011 by Taylor Solicitors Cork

The Rules and Regulations of Online Selling (video)

Whether you’re selling a product or service, increasingly many businesses are moving towards offering their wares online.  As a business owner it’s up to you to ensure you’re familiar with the relevant legal requirements and you’re playing by the rules when it comes to online selling.

Consumer Rights

The basis of all consumer law is that the products or services you are selling have to be of a certain standard and consumers are entitled to expect this standard.  These basic consumer rights still apply when people are buying online.  In addition to these basic rights, online customers also benefit from additional protections under both Irish and European law.

Of particular relevance here are the Distance Selling Regulations and the E-Commerce Regulations.  From the perspective of most business owners the main points to consider are the following:

-          When do these regulations apply?

-          What information must I provide before a contract or agreement is enforceable?

-          What confirmation information must I provide?

-          What is a cooling off period?

When do these regulations apply?

Distance selling means any situation where you’re not dealing with someone face-to-face but instead you’re taking orders remotely.  This can be over the phone, email or via your website.

What information must I provide before a contract or agreement is enforceable?

As the business owner, the legal obligation is on you to ensure your customers get all the required information before any agreement is deemed to be enforceable.  This information includes:

-          who you are: your business name, identity

-          what you’re selling

-          price including taxes, delivery costs

-          details of the payment and delivery process

-          details of the right of cooling off and cancellation where appropriate

-          period for which the price is valid

What confirmation information must be provided on or before the time of delivery?

Prior to concluding the order or contract, you must provide customers with certain additional information including:

-          written confirmation of the order

-          written information on how to cancel the order

-          business address to which they can forward complaints

-          details of any guarantees

What is a Cooling Off Period?

The distance selling regulations give consumers what’s known as a “cooling off” period. This is something that consumers do not automatically get after they have bought goods or services in a physical shop, but it is a major requirement in online sales. During this period the consumer can cancel the order without giving you any reason whatsoever. The cooling off period starts on the day your goods are delivered to their home, or on the day when the customer makes the contract for a service.

As a web trader, you are legally required to give consumers a cooling off period of at least seven working days. The period can be longer than this if you wish, but it must not be shorter.  This cooling off period does not apply to all goods and services and exemptions include where you are supplying perishable goods or accommodation in a hotel or guesthouse for specific dates.  It’s important to also note that this cooling off period can be extended to three months if you do not provide the customer with all the relevant information about their contract within 30 days of their order.

As I said initially, it’s your business and it’s your responsibility to make sure you’re playing by the rules. Customers do not have to seek this information from you – it’s up to you to provide it.   In today’s market consumers are more savvy then ever when it comes to avoiding a contract so if you’re selling online it only makes sense to put proper information  and systems in place to protect your business.

Taylor Solicitors Cork homepage

Find out more about how we can help your business

Posted in Business General, Consumer Rights, Solicitors Cork | Leave a comment

Taylor Solicitors Cork: Part-Time Employment Rights

Posted on October 7, 2011 by Taylor Solicitors Cork

Working on a part-time basis can suit many people for lots of different reasons.  You may be responsible for children or older parents and working full-time just isn’t an option at the moment.  On the other hand, you might just not be able to secure full-time work in today’s market.  Whether by choice or necessity, in the last few years more and more people in Ireland are working on a part-time basis.

At Taylor Solicitors Cork, one of the questions we are continually asked is whether employers are required to oblige full-time employees who want to switch to part-time hours.  The simple answer to this, is no, there is no automatic entitlement to part-time hours.  Any move from full-time to part-time work requires agreement from the employer.

However, at both an Irish and EU level the importance of increasing access to part-time work and indeed greater flexibility in the workplace has been recognised.  It just makes good business sense.  Employees are people… people with lives, families and lots other commitments.  Getting the best out of employees requires flexibility which can lead to happier and more productive staff.

As I said, the importance of access to part-time work has been recognised at a political level.  In 2006 we saw the introduction of the Code of Practice on Access to Part-Time Working (pdf) .  Although not binding on employers, this Code advocates that it is best practice for employers is to have policies on improving access to part-time work and employers should aim to maximise the range of positions available for part-time work.

If you make a request for part-time work, your employer should have a procedure for dealing with your application which allows for consultation and discussion before making any decision.  Your request should be taken seriously and consideration should be given to your personal circumstances, how part-time work would affect the business and the general staffing needs of the organisation.  You are entitled to have your request considered and reviewed on a non-discriminatory basis.

As I said, there is no right to work part-time hours and your employer can refuse your request but they should have good grounds for the refusal and you should be given reasons for why your request has been refused.

In our experience, many employers appreciate that all employees have different needs and obligations on their time.  They recognise the benefits of introducing flexibility in the workplace and working with staff to come up with solutions.

But like everything in life, you don’t ask, you don’t get.  So if reduced hours or greater flexibility is what you need at work, ask.  Think before you speak, put together your proposal and make your case.

Find out more about our Employment Law services

Useful Links:

National Employment Rights Authority:  http://www.employmentrights.ie

 

 

 

Posted in Employment Law, Solicitors Cork | Leave a comment

Taylor Solicitors Cork: Proposed Bill to give Commercial Tenants the right to seek rent review

Posted on September 28, 2011 by Taylor Solicitors Cork

It is a tough time to be in business and managing costs is crucial to survival.  Ask any business owner about the costs of running their business and rent will feature as a significant expenditure.  One of the key election commitments of the current Government was a pledge to abolish upward only rent review clauses for commercial leases. 

In 2009 we saw the abolition of upward only rent reviews for leases signed post December 2009.  However, leases pre-dating December 2009 can still be subject to these upward only rent reviews.  This has created inequity in the commercial rental market and has led to job losses and the demise of many businesses. 

Under proposals currently under consideration, it is reported by the Irish Times today that the Government is preparing to give commercial tenants the right to seek a review of their rental agreements from their landlords in the proposed Landlord and Tenant (Business Leases Review Bill).

According to the article published in today’s Irish times (see link below), where a tenant seeks a rent review a four week consultation period would follow and if no agreement is reached, the parties would enter a compulsory mediation process.  If a resolution could not be reached via mediation, parties could apply to the Circuit Court for a ruling.

The Irish Times further reports that to enter this process tenants would have to establish that their rent is in excess of market rents,  that their company/business is vulnerable and lowering the rent would increase the chance of business success.

Without a doubt, upward only rent reviews do not reflect the reality of the times we live in.  When a business is struggling, negotiation is key to survival and introducing a mechanism to facilitate rent reviews is a step forward towards job retention, business survival and getting this country back on track. 

Taylor Solicitors Cork

 Link to article Irish Times 28.09.11:  http://www.irishtimes.com/newspaper/finance/2011/0928/1224304856477.html

Posted in Business General, Property Law, Solicitors Cork | Leave a comment