Avoiding Frostbite: A Primer on Canadian Employment, Immigration and Labour Laws
Uk business immigration, employment and ip update 2 tom redfern, fitzgerald and law - 25 january 2012
1. Tom Redfern Rachel Lockwood
LLB (Hons) BSc (Hons), ACA, CTA
Head of Legal Partner
Fitzgerald & Law Oury Clark
Professional Advisory Services Chartered Accountants
2. GLOBAL READY
International Growth Strategies for SMEs:
The Legal Aspects of Setting up in the UK
January 25, 2012, Charlotte NC
Session 2
Tom Redfern, Head of F&L Legal LLP
3. Agenda
Independent UK How to
Contractor v Employment protect IP in
Employee Law Update the UK
www.fitzgeraldandlaw.com
London San Francisco
4. Independent Contractor v Employee
Both sides may be drawn to the Independent Contractor route because:
Cheaper: More flexible: No visibility for
No employer tax to pay Rights of termination the principal:
No holiday pay Ability to work for
No payroll registration
No employee benefits others
Engagement can be via
No tax deducted at No specific working
US entity
source hours
www.fitzgeraldandlaw.com
London San Francisco
5. Independent Contractor v Employee
• Similar rules to the US
• Whatever the language of the contract, the UK tax
authorities will look at the circumstances, such as…
Is the contractor providing services for more than one client?
Are there variable fees? Is there a right of substitution?
Can the contractor hire someone else to do the work?
Is the contractor provided with tools/equipment for the work?
www.fitzgeraldandlaw.com
London San Francisco
6. Independent Contractor v Employee
Dangers of Contractor Route
• IP vests in the contractor unless stated in the contract
• No duty of trust/good faith exists
• Contractor will usually have no PI insurance
• Tax liability if authorities determine it is an
employer/employee relationship and cannot collect tax from
the employee
• Contractor can seek clearance from authorities to determine
the status of the relationship but this is not customary and
puts the relationship on their radar
www.fitzgeraldandlaw.com
London San Francisco
7. Independent Contractor v Employee
Governing Law and Jurisdiction
• Employee relationship: must be governed by English law
• Contractor relationship: can choose a US State’s law and
likewise jurisdiction venue is a matter of choice
• If you want to bring a claim: better to choose English law and
the English courts
www.fitzgeraldandlaw.com
London San Francisco
9. UK Employment Law
• Written contract
• Under English Law
• No employment ‘at will’
• No PTO days
• Minimum paid holiday entitlement
• No Maximum working hours
• Sick pay rules
• Restrictive covenants
• Protection against dismissal after 12 months service
www.fitzgeraldandlaw.com
London San Francisco
10. UK Employment Law
Simplest way to dismiss an employee:
• Give notice before 12 months service expires
• Comply with the terms of the employment contract
OTHERWISE you won’t be able to enforce post-termination
restrictions in the contract
• From April 2012, the ‘12 months’ rule
will change to 2 years (better for employers)
Compromise Agreement
www.fitzgeraldandlaw.com
London San Francisco
12. How to Protect IP in the UK
Intellectual Property Update
Different types of IP
• Patent: registered
• Trademark: registered/unregistered
• Design: registered/unregistered
• Copyright: unregistered
www.fitzgeraldandlaw.com
London San Francisco
13. Patents
Intellectual Property Update
Patents
• Limited life span
• Can be EU or UK wide
• Annually renewable
• Expensive
Trademarks
• Valid so long as registration renewed
• Can be EU or UK wide
• Renewable every 10 years
• Covers the 45 different classes of goods or services required
www.fitzgeraldandlaw.com
London San Francisco
14. Design
Intellectual Property Update
Design
• Valid for 25 years
• Can be EU or UK wide
• Renewable every 5 years
Copyright
• Cannot register
• Valid for the creator’s life + 70 years (except songs, which is 50 years)
• Software and databases can be protected as literary works
www.fitzgeraldandlaw.com
London San Francisco
16. Tom Redfern
+44 20 7430 5886
tredfern@fandllegal.com
North America Office London Office
388 Market Street, Suite 1300, San Francisco CA94111 8 Lincoln’s Inn Fields London WC2A 3BP
+1 415 7289815 +44 20 7404 4140
info@fitzandlaw.com info@fandllegal.com
www.fitzgeralandlaw.com