Don't abuse expenses to boost your salary

Shropshire bosses should review their expenses policies in order to stop staff getting away with false claims.

John Mehtam, our Employment Law Specialist, said the MPs expenses scandal had uncovered a raft of issues that could not be ignored.

“We’ve all seen the continuing press coverage and the uproar over the MPs’ claims, and it’s an important lesson for companies to learn. Now is the perfect time to review your expenses policies, and ensure staff are not using your expenses system as a way to boost their salaries. Some people seem to assume they have a right to expenses on top of their wages, but in fact they are there to reimburse staff and not as an additional extra to reward them.”

John said companies should check the expenses staff were claiming were actually correct – particularly travelling expenses.

“But of course you’ll probably have much more pressing things to do than check every single expenses claim – and that’s what expenses cheats are relying on. There is no reason though why you can’t introduce spot checks. Select a couple of claims at random and look through them in detail – this should be enough to put employees off who may be considering submitting inflated claims.

“If you do find someone has made a false or embellished claim, challenge them – if they’ve clearly broken the rules, you can start disciplinary proceedings, and of course, it’s actually also a criminal offence.”

John said companies should also insist on receipts – for every expense they claim, staff should need to prove it. “Take heed of the scandal that’s hit Westminster, and don’t allow your own company to suffer at the hands of employees who are prepared to take a chance.”

Think carefully before you sign

Shropshire couples should think very carefully before they sign a prenuptial agreement as it will now have a huge impact on the rest of their lives.

Graham Davies, our Senior Partner, said previously prenuptial agreements had been taken into consideration by the courts, but could not be enforced. But now, in a landmark decision senior judges have given their clearest signal yet that courts in England and Wales should take prenuptials as binding documents, bringing them into line with the rest of Europe.

“The law previously said that prenuptial contracts were not enforceable, but the judges said the legislation was patronising and outdated,” said Graham. “So in the case of a wealthy heiress, they ruled that the prenuptial contract she and her husband had signed should be decisive in their divorce case.

“In future, the courts will now regard these contracts as binding, unless there is a reason not to. This means couples should give more consideration to the agreement before they sign it, as it could be a key factor if they ever decide to divorce and need to divide their assets.”

Graham said the judges had decided that ignoring prenuptial contracts seemed to be “increasingly unrealistic” and “reflected the laws and morals of earlier generations”. “By bringing England into line with the rest of Europe, the judges have put a stop to divorcing couples from overseas coming here to finalise their arrangements and avoiding their prenuptial agreements.

“The outdated law meant it was open season for couples who wanted to disregard the contracts they had previously signed – now England is on a level playing field. Any couples considering a prenuptial agreement would be wise to think things through very carefully – the consequences of signing one could have a huge impact on your future.”

Beware employee fraudsters

Shropshire bosses must look for tell-tale signs that their employees may be struggling to cope with the realities of the credit crunch.

John Mehtam, our Employment Law Specialist,said: “Tough economic times lead people to resort to all kinds of desperate measures. Last year employees were convicted of frauds totalling £300 million, and with the credit crunch biting, many more may be tempted to try to cheat their employer.

“Many employees with previously spotless characters may resort to drastic tactics when under pressure, and it’s important to spot the early warning signs. Is someone behaving oddly? Have they started to come in extremely early, or stay very late?

"If so, ask them why.There could be a reasonable explanation, maybe they’ve got an excessive workload or they’re unhappy at home. But it’s also possible they could be waiting for everyone else to leave so they can get at the petty cash.”

John said it was important to carry out regular audits on any cash held on the premises, and if large amounts need to be paid out, make sure two people authorise it.

“Look for an employee who may be making unusually excessive purchases, or who is going to expensive restaurants more regularly, or taking more foreign holidays than usual. If it doesn’t fit with their salary, then something’s not right. Of course, there could be a simple explanation, perhaps they’re spending an inheritance, but it’s also possible the money is coming from your business account."

In the danger zone

Company directors across Shropshire could find themselves top targets when it comes to identity theft.

Our Senior Partner, Graham Davies, said national research had shown that company directors aged 30 to 50 were particularly vulnerable.“The research showed that any senior staff living in rented accommodation were most at risk, as they tend to share post boxes and move house more often.This gives fraudsters more opportunity to access and abuse their credit histories.”

He said directors earning more than £50,000 were almost three times more likely to fall victim to an identity theft – and those employing over 50 people were five-and-a-half times more at risk.

“It appears the most common method is to use a forwarding address fraud. This is where the criminal redirects your post to a ‘drop’ address, which they later visit to collect the items. This trick accounts for around 36 per cent of all identity thefts, but you will probably be completely unaware it is even happening initially.

“It’s only likely to be uncovered when you’re expecting private financial information, such as bank and credit card statements, and they fail to arrive. If you don’t receive the items you’re expecting, don’t ignore the situation. You should speak directly to the sender, and also insist they investigate any suspicious activity on your account.”

Louise joins the Martin-Kaye team

A solicitor with a passion for extreme sports is the latest addition to our Commercial Property team. Louise Clowes, of Maer Heath in Staffordshire, has previously worked for companies in Manchester and Nantwich.

Her past experience has included working on minerals and environment cases, commercial sales and purchases, landlord and tenant work, easements and licences. She has also handled more unusual cases including the purchase of a sand and gravel quarry to be turned into a nature reserve, and the purchase of an open cast coal mine.

Louise is a keen triathlete in her spare time, competing in a wide range of events from sprint distance to the tough Ironman format.

“I enjoy challenges, both in terms of my work and my spare time, and the Ironman event is a prime example of one of the toughest there is. I’m thoroughly enjoying the work at Martin-Kaye, and looking forward to helping the Commercial Property team to build on its already strong reputation, both locally and on a wider national stage.”

Pic: Louise Clowes – the latest addition to the Martin-Kaye Commercial Property team

Maternity leave is no protection

Shropshire employees on maternity leave are not immune from redundancy cuts - that's the message from John Mehtam, our Employment Law Specialist.

"Many employers believe staff on maternity leave cannot be considered when it comes to job losses, but in fact, although women on maternity leave have the right to be offered suitable alternative work ahead of other staff selected for redundancy, they are not exempt from the process.”

John said many companies were facing tough decisions in difficult economic times, and redundancies were occurring in all kinds of industries. “If one of your employees has just gone off on maternity leave, which means she could be away for up to 12 months without making any contribution to your business – wouldn’t she be an ideal candidate for redundancy? It’s not the easy option that it may initially seem, but it’s not impossible.

“Women on maternity leave do have a special level of protection, so before taking the redundancy route, you must assess whether there is any ‘suitable alternative work’ available elsewhere in your company,” said John.

“It will need to be something similar to her current role so offering night shift work to a daytime employee would not be appropriate. If such work does exist, she takes priority over any other employees selected for redundancy, which in reality means she has an automatic right to the job. She’s then entitled to a four-week trial period to see if it suits her – at the end of this period, she can refuse the job and then be made redundant.”

But John said if there was no alternative work, employers should continue with the redundancy process – provided they go through the correct procedure, and have good grounds for selecting the employee, she can be made redundant. “As long as you’ve followed the process to the letter, the fact that she’s on maternity leave makes no difference. Keep notes of your reasons for selecting her, but make sure you don’t refer to her maternity leave as this will be considered discriminatory.”

Alpha celebrates anniversary success

Our business protection scheme, which is the first of its kind in the UK, has beaten all targets in its first two years. The Alpha project has just reached its second anniversary, with interest still increasing on a daily basis.

It's a comprehensive 24-hour business support package with particular emphasis on employment and Human Resources support – the scheme also provides insurance protection against claims.

Senior Partner, Graham Davies, said: “We’re delighted to announce that every company who joined the scheme has renewed its membership, and interest is continuing to grow. Particularly in such difficult economic times, expert support and effective advice is proving to be extremely popular with all kinds of businesses, and through Alpha, we are delivering advice that makes a real difference.”

The all-in-one package offers face-to-face legal advice and assistance with HR policies and practices, and legal expenses insurance against fees, costs and tribunal awards. Companies also receive legal representation at any employment tribunal, legal updates, training workshops, and direct access to the entire Martin-Kaye Commercial Department, not just the employment team.

Alpha includes discounted legal services for each member business and their employees too – no matter which department they need help from – including conveyancing, wills, divorce and other personal issues.

For more information about the Alpha project, email alpha@martinkaye.co.uk or visit www.alpha-hr.co.uk

Martin-Kaye clients have also been keen to praise the service:
“I am glad we switched our HR protection to Alpha. The advice we receive is practical and geared to our business and the on-site visits are invaluable. We also appreciate having access to the wider aspect of the Commercial Department of a well respected law firm.”
Pam Wilson, Pink Skips

“The level of service provided by the Alpha scheme is second to none, far more extensive than any other scheme that we have looked at. The discounts available for members of our staff is unique and provides added value for us.”
Stuart Shepherd - APT Solutions Ltd