Lisa Judd – Lisa provided calm and reassuring assistance during what was a difficult and unknown period relating to the cessation of my employment. Her experience and skill helped to negotiate a much more favourable outcome for me for which I am very grateful.
How can security against a loan be released?
When you take out a commercial loan, you may have to put up some assets as security against the loan in case there is a default on the loan.
This gives a lender the right to claim the asset and sell it to recover what they have lent to you.
However, in some situations, you may seek to release the security and gain full control over your asset again.
When would security be released?
Security on a loan may be released in a number of circumstances, including:
- Repayment – If you have repaid the loan, then you have the right to seek release of your asset, provided you have satisfied all other conditions.
- Refinancing – You may have the option to refinance the loan, which may adjust the collateral needed.
- Substitution – In some cases, the lender will accept a substitute security if both parties agree, although this is less common.
The most common scenario is that security is released once you have satisfied all conditions relating to your loan, including full repayment with any relevant interest and costs.
How do I release my security?
This will depend on the type of security, but generally you will require some signed documents, such as Form DS1 or a deed of release, from the person to whom you have granted security.
A deed of release does what it says on the tin – releases you from your legal commitment to provide security to your lender once the loan has been repaid.
Form DS1 may be used to release you from security on a property, which will need to be submitted to HM Land Registry.
If your company has provided the security, any deeds may need to be submitted to Companies House.
If this is straightforward and the lender cooperates, the cost for this is likely to be in the region of £600 to £900 (plus VAT and disbursements) as a minimum.
In more complex circumstances, costs can rise quickly, so it is important that you seek advice from an expert when seeking to release security on a loan.
For advice on drafting and signing commercial loan agreements, please contact Dashna at DashnaMorarji-Sagoo@palmerslaw.co.uk or by calling 07903 631780.
What happens when an employee is accused of embezzlement?
Embezzlement, the misappropriate or misuse of company funds by an employee, is a serious allegation, and its impact on businesses can be significant, ranging from financial losses to reputational damage.
If an employee is discovered to have embezzled money from your company, you must act swiftly and carefully to protect your interests and ensure you do not land in legal difficulties.
What action should I take?
When embezzlement is discovered, it is important to take immediate action to minimise financial loss and damage to your reputation.
The key steps to take are:
- Investigation – You should launch an internal investigation to obtain the facts, including a review of financial records, interviewing witnesses and speaking to your employment law team, as well as a commercial law specialist.
At an early stage in the investigation process, consideration should be given to suspending any suspected staff to prevent them interfering with an investigation or concealing evidence and to minimise the opportunity for further losses.
- Disciplinary action – After completing your investigations and consulting with HR and your legal advisers, there may be a case for commencing disciplinary proceedings against any staff who appear to have been complicit in any wrongdoing or have not adhered to any fraud prevention policies/procedures. Any disciplinary action should be conducted in accordance with the ACAS Code on Disciplinary & Grievance Procedures and company policies/procedures.
- Reporting – Embezzlement is a crime so, if it is discovered and reasonably confirmed, you should consider reporting it to the relevant authorities. There can be liability for organisations whose managers choose to turn a blind eye.
- Managing potential reputational damage – You might wish to consider whether any additional public relations services are needed.
- Recovery – You may consider taking civil action to recover misused funds and consider whether you have any relevant insurance cover.
- Review – You should review your internal processes and strengthen controls to ensure this does not happen again.
Employers must tread carefully when dealing with allegations of embezzlement.
Accusing an employee without evidence or mishandling the investigation could lead to legal claims including wrongful dismissal, unfair or constructive unfair dismissal, or defamation.
Particular care is needed when there might be a concurrent criminal or regulatory investigation to avoid jeopardising a potential prosecution.
Consulting employment, commercial and even criminal specialists as appropriate at each stage is critical to ensure the correct procedures are followed and the business is protected from further risks.
For more information or to discuss your specific concerns, contact us today.
What holiday entitlement do your employees have?
As the festive season approaches, we are approaching the end of the holiday year for many employees – and a time when many are looking to book time away from the office.
While we understand that this can be a busy time of year, it is important that you understand your employees’ holiday entitlements and allow them to take the holiday days to which they are entitled.
Failing to do so could result in penalties, as well as poor staff satisfaction.
For those earning commission or regular overtime, the payment made to employees for holiday must be considered as it is not straight forward. Please contact us for further advice on this.
Basic entitlement
If you are an employer, most of your employees will be classed as workers (if they have a contract with you and you pay them) and will therefore be entitled to 5.6 weeks of paid holiday per year as a minimum.
For those who work ‘traditional’ hours – i.e. they work a five-day week, statutory leave entitlement is 28 days or more of paid leave per year, although many employers now offer more.
This can, for example, be eight bank holidays and 20 days (four weeks) of holiday.
However, if you offer additional holiday allowances within an employee’s contract, you must allow them to take this holiday, not simply their statutory entitlement.
Part-time and irregular workers
Part-time workers are entitled to 5.6 weeks’ leave, pro-rated to the number of days that they work. For example, if someone works two days per week, they are entitled to 2 x 5.6 days, which equals 11.2 days.
Changes to the Working Time Regulations earlier this year also amended the way in which holiday entitlement is calculated for part-year and irregular hours workers.
Holiday entitlement is calculated at 12.07 per cent of the hours they work in a pay period, paid either in the month in which it is taken or spread evenly across each pay period.
Refusing leave
Taking leave can put additional strain on busy teams, so we understand that it is sometimes necessary for employers to decline leave requests.
You must give the employee at least the same notice as the time they wish to take off. For example, if an employee asks for a week off, you must refuse the leave at least a week ahead of the date on which they wish to start their leave.
If you do not, they will be entitled to take the leave and be paid for it.
Additionally, you must give employees the opportunity to take their full leave and pay them appropriately for that leave taking account of regular overtime for example.
If you repeatedly refuse leave to the point that employees are not able to take their entitlement, you may find yourself subject to grievances or an Employment Tribunal, if the situation escalates.
For advice on your employees’ holiday entitlement or their pay entitlement when taking holiday, please contact us.
New Year, new Will – Does your Will need revising?
As 2025 approaches, many are busy setting New Year’s resolutions, from personal growth to professional development – but how many will forget their Will?
We recommend updating your Will regularly, every five years and after major life events.
If you have not updated your Will in a while or 2024 has been a big year for you, it may be time to revise your Will and ensure it reflects your current wishes.
When Wills need updating
Aside from regular updates and reviews, there are a number of circumstances when you need to update your Will to reflect your family situation and estate.
These may include:
- Marriage or civil partnership, as this usually revokes existing Wills
- Divorce or dissolution as provisions for ex-spouses are typically invalidated
- The death of a beneficiary or executor
- The birth of children or grandchildren
- Significant asset changes, such as aquisition or disposal
- Changes to your relationships with family members or loved ones
- Changes to Inheritance Tax legislation
Reviewing a Will regularly ensures it reflects your current wishes and circumstances.
Updating your Will
There are generally two ways to update your Will, depending on the information you need to include. These are:
- A codicil – A formal, legally binding document that makes small changes to your existing Will, which must be signed and witnessed, like the original Will.
- Writing a new Will – For significant changes, it’s often better to create a new Will, which should clearly revoke the old one and detail your current wishes.
When writing a new Will or updating an existing one, it is important that you get it witnessed and signed properly, otherwise it may not be valid and your estate may not be distributed according to your wishes.
Recent changes
One of the headline changes to the UK tax code from the recent Budget was the updates to Inheritance Tax (IHT) law.
Agricultural Property Relief is being reformed from April 2026, meaning farms passed on will be subject to 100 per cent relief for the first £1 million of combined assets and 50 per cent relief for additional assets.
For advice on updating your Will in the new year, please contact our team.
On the road this Christmas? Think before you drink!
It’s that time of year when saying “yes” to just one more drink at the Christmas festivities could cost far more than your utility bills this winter and carry devastating consequences for your life and others on the road.
While most people understand that drink driving is illegal, the legal alcohol limits in the UK are stricter than many realise:
- 35 microgrammes of alcohol in 100 millilitres of breath
- 80 milligrammes of alcohol in 100 millilitres of blood
- 107 milligrammes of alcohol in 100 millilitres of urine
What happens if you’re suspected of drink driving?
If a police officer suspects you of drink driving, you’ll typically be asked to take a roadside breath test.
If the roadside breath test is positive you are likely to be arrested and taken back to a police station to provide an evidential test, that is one that can be used in Court. Police can also request blood or urine samples under specific circumstances, such as:
- When a breath sample isn’t feasible for medical reasons.
- If a reliable breath-testing device isn’t available.
- If the breath test results are deemed unreliable.
- If there’s reason to believe drugs may be involved.
It’s important to note that refusing to provide a requested sample without a reasonable excuse is a separate offence of failing to provide a specimen which is similar to, but more serious than, most cases of simple driving with excess alcohol.
The consequences of drink driving
The consequences of drink driving can be life-changing, extending beyond legal penalties to personal and professional impacts.
Penalties for driving while over the limit include:
- Up to 6 months imprisonment
- An unlimited fine
- A driving disqualification for at least 1 year (or 3 years if convicted twice in 10 years)
However, if you cause death by careless driving under the influence the consequences are far more severe.
You could receive a life imprisonment sentence, an unlimited fine, a driving ban for at least 5 years and a mandatory extended driving test to regain your licence.
Beyond these legal penalties, a drink driving conviction can significantly increase your car insurance costs, affect your employability, and restrict your ability to travel abroad.
Alternatives to drinking and driving
Christmas parties are supposed to be a night to have fun and relax, not a prelude to regret.
When you are planning your options for getting to and from your festivities you have several options to consider.
For instance, you could designate a driver in your group who abstains from alcohol, use a taxi service, or depending on the time your event finishes, you may be able to catch some form of public transportation.
What should you do if you are caught?
If the tests come back confirming the officer’s suspicions that you were drink driving, it’s important to seek legal advice as soon as possible.
Our Road Traffic Department can provide specialist advice and representation, with the aim of defending and preserving your licence, wherever possible.
Our experienced team know what evidence to seek and what arguments could be used in favour of your defence to avoid or limit your driving ban.
We will provide you with advice on your rights in connection with court appearances.
For further information on how our Traffic Offences Solicitors can support you, contact our team.
If you need advice on road traffic offences, please contact our team to discuss your needs.