Employment-cessation event meaning

When does a section 75 debt arise? An s 75 liability crystallises in respect of an occupational pension scheme that is underfunded on a buy-out basis and: an employment-cessation event happens for a relevant participating employer within a multi-employer scheme an insolvency event occurs in relation to a participating employer of the scheme, or the scheme formally goes into winding up In a multi-employer scheme, an employer’s s 75 debt is its allocated share of the scheme deficit, appropriately assessed on a buy-out basis. As an alternative to immediately paying the s 75 debt in full, an employer may enter into a deferred debt arrangement, an apportionment arrangement, or a withdrawal arrangement. Section 75 does not apply at all to money purchase schemes, unregistered pension schemes, unfunded public sector schemes, and a scheme with only one member. ...

THIS CHECKLIST APPLIES TO MULTI-EMPLOYER DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES General For an employer leaving an underfunded defined benefit occupational scheme, apportionment arrangements provide an option other than paying an s 75 debt in full when an employment-cessation event occurs. There are three forms of apportionment arrangement: scheme apportionment arrangement (SAA) regulated apportionment arrangement (RAA) flexible apportionment arrangement (FAA) The statutory requirements for apportionment are prescribed in the Employer Debt Regs, SI 2005/678, regs 6B, 6E and 7A, together with the definitions in reg 2(1). The Pensions Regulator (TPR) has produced guidance to help employers and trustees understand the available approaches for addressing s 75 debts, including apportionment arrangements. If an apportionment arrangement could adversely affect a scheme’s ability to meet its pension liabilities, the exiting employer and the remaining employers should consider seeking clearance from TPR...

FTT holds payments to employees under tax avoidance scheme were taxable earnings despite purported repayment obligation (GW Martin & Co Limited & another v HMRC) GW Martin & Co Ltd & another v The Commissioners for HMRC [2025] UKFTT 1147 (TC). The appellants transferred sums to employees on the basis that those employees would subscribe for a newly created class of shares in the appellants (the Shares). These Shares conferred no voting power, no dividend entitlement, and only very limited rights in the event of a winding up. The structure was intended to sidestep PAYE and NICs liabilities while also delivering a corporation tax deduction. The sums advanced were not loans; rather, they were conditional on staff taking up Shares with a nominal value mirroring the payments. Only 1% of that nominal amount was paid up, leaving the remaining 99% uncalled, so the cash flowed to employees while the issued share capital largely remained unpaid...

In this issue: CPR updates Employer's liability Clinical negligence Coroner's inquests Claims involving a fatality Costs Other PI and clinical negligence news LexTalk®PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts LexisNexis® Webinars Useful information CPR updates 185th Practice Direction update—online claims—in force 18 July 2025 The Master of the Rolls and the Minister of State for Justice have issued the 185th Practice Direction update to the Civil Procedure Rules, taking effect on 18 July 2025. It revises CPR PD 51R (Online Civil Money Claims) and CPR PD 51ZB (Damages Claims Pilot), and inserts a new fixed costs section within CPR PD 51R. Both pilot schemes are extended by a further 12 months, now running until 1 October 2026. See: LNB News 30/07/2025 24. 186th and 188th practice direction updates—in force 1 October 2025 The Master of the Rolls and the Minister of State for...

Employment Appeal Tribunal Judge Murray Shanks stated the tribunal was justified in concluding that Nicolas Toure’s allegation that a colleague used a racial epithet was 'fictional', and that his readiness to forget it in return for promotion was 'tantamount to blackmail', although the tribunal’s rationale for dismissing his victimisation complaint was 'plainly wrong'. He noted the tribunal had been mistaken in stating Toure was not dismissed by Ken Wilkins Print Ltd; yet Toure’s contention that his sacking was retaliation for raising race discrimination 'could not possibly have succeeded', in any event, according to Judge Shanks in a judgment handed down on 17 January 2024...

A risk with employment cessation events is that they can be set off unintentionally, for example because the last remaining active member of an employer in a multi-employer defined benefit scheme has left. The Employer Debt Regulations, SI 2005/678 were amended with effect from 6 April 2008 to introduce grace periods, a device intended to help employers deal with accidental employment cessation events. For further information on employment cessation events and other section 75 triggers, see Practice Note: When is a section 75 debt triggered? When can a grace period be used? When can a grace period be used? An employer in a multi-employer defined benefit scheme may notify the trustees that it wishes to enter a grace period (by giving a grace period notice) if: that employer ceases to employ active members at a time when at least one other employer still employs active members, thereby creating an employment cessation event, and it intends to employ at least one individual who is an...

ARCHIVED: This Practice Note has been archived and is not maintained Employment law dates for your 2024 diary This Practice Note provides a concise overview of major legal developments that affected employment lawyers throughout 2024. It outlines, month by month, the key dates relevant to the profession, arranged chronologically and spanning case law, legislation and consultations. The schedule is designed to help practitioners track significant milestones across the year with clear references to subject areas and event types. Further detail and related news coverage are available in the following resources: Case tracker—Employment Archived—2024 Case tracker—Employment Legislation tracker—Employment Archived—2023 Legislation tracker—Employment Consultation tracker—Employment January 2024 1 January 2024 — Legislation in force — Brexit and retained EU law: The Retained EU Law (Revocation and Reform) Act 2023 (Commencement No...

JCT contracts include comprehensive rules on termination, explaining the grounds on which parties may end matters and the effects that follow. Under these forms, it is the Contractor’s employment that is brought to an end, rather than the contract itself. This distinction is intended to ensure the contract’s post-termination provisions remain operative after termination. This Practice Note addresses the termination clauses in the JCT Standard Building Contract (SBC) With Quantities 2011, 2016 and 2024 editions, found in section 8 of those agreements. Equivalent mechanisms also appear in other JCT contracts. It should be read in conjunction with Practice Note: Termination of a construction contract. Termination should always be approached with great care. If a termination is wrongful, or if the prescribed procedures are not followed precisely, the attempt to terminate may amount to a repudiatory breach of contract by the party seeking to do so. Furthermore, where the other party challenges the purported termination, the terminating party may find itself drawn into an expensive dispute...

This Agreement This Agreement is dated [ insert date ] Parties [ insert name of employee borrower ], of [ insert address ] (Employee) [ insert name of employer lender ], a company incorporated in England and Wales with registered number [ insert company number ], whose registered office is at [ insert address ] (Employer) The parties agree as follows: Definitions 1.1 In this Agreement, unless stated otherwise: Drawdown Date means [ insert date ]; Event of Default has the meaning given in Clause 6; Loan means the sum of £[ insert figure ] (£[ insert amount in words ]) to be advanced by the Employer to the Employee under this Agreement, to the extent not yet repaid; Repayment Date has the meaning given in Clause 4. The Loan 2.1 Subject to the provisions of this Agreement, the Employer will provide the Loan to the Employee for the...

1 Should the [ Board OR Remuneration Committee ], at any point in time within [ three ] years from the date a bonus has been paid to you, in its sole and absolute discretion conclude that any event set out in sub-clauses 1.1 to 1.4 of this clause has arisen, it may demand that you repay some or all of the pertinent bonus payment (irrespective of whether you remain in employment with the Company or any other Group Company), with such repayment to be carried out strictly in line with clause 2: 1.1 [ the Company or any other Group Company being required to materially restate all or part of its financial statements OR your gross negligence, fraud, dishonesty or other misconduct having caused or helped to cause the Company or any other Group Company to materially restate all or part of its financial statements ] ; 1.2 your gross negligence, fraud, dishonesty or other misconduct, or your commission of any further act or...

[ TO BE TYPED ON THE HEADED NOTEPAPER OF THE EMPLOYER ] [ Employee name ] [ Employee address ] [ [ By email only ] ] [ Date ] Dear [ employee name ], Requirement to acknowledge request Under Part IIA of the Parental Leave Act 1998 (Ireland) (PLA 1998 (IRL)), as updated by the Work Life Balance and Miscellaneous Provisions Act 2023 (Ireland) (WLBMPA 2023 (IRL)), employers must acknowledge an employee’s request for a flexible working arrangement and reply as soon as is reasonably practicable, and in any event within four weeks of receipt. Where additional time is needed to evaluate the request, the employer may lengthen the period for responding, but any extension must not exceed eight weeks. Re: Acknowledgement of flexible working request ‘In reference to your request...’ An employee may seek a flexible working arrangement from the first day of employment (see PLA (IRL), Part IIA, s 13A). However, the arrangement may...

Under section 193 of the Trade Union and Labour Relations (Consolidation) Act 1992 Employers are required to inform the Secretary of State for Business, Energy and Industrial Strategy (BEIS) before issuing any redundancy notices and, in any event: where 20 or more dismissals are contemplated within 90 days, no less than 30 days before the first dismissal takes effect where 100 or more dismissals are contemplated within 90 days, no less than 45 days before the first dismissal takes effect For BEIS notification purposes, the full 30- or 45-day interval must pass before the first dismissal occurs. Notification is made on Form HR1, submitted to The Insolvency Service. For additional details, see Practice Note: Collective redundancy—statutory information and consultation obligations, under the heading Obligation to notify BEIS (Form HR1). As stated in the Advance notification of redundancies: guidance for employers accompanying Form HR1, the notification date is ‘the date on which we receive your completed form’. Forms with any required information...

Disability discrimination Under section 6 of the Equality Act 2010 (EqA 2010) and EqA 2010, Sch 1, Pt 1, a diagnosis of cancer is treated, without further proof, as a disability for EqA 2010 purposes. See Practice Note: Disability. Attention must be given to the various forms of discrimination and other banned conduct contained in EqA 2010, as set out within that legislation and provisions therein. See the part of Practice Note: Disability discrimination headed ‘The basic types of discrimination and other prohibited conduct’, together with the fuller Practice Notes cited there and cross-referred within that section. For EqA 2010 purposes, a ‘dismissal’ also covers situations where an employee’s employment ends (and is not immediately renewed on identical terms) because a particular period has run out, or a particular event has happened, or a particular circumstance has arisen; this includes the ending of fixed-term contracts (EqA 2010, s 39(7)–(8)). Accordingly, the requirement to make reasonable adjustments binds employers when they are considering dismissing an employee; that is, dismissal will...

It can sometimes occur that an employee has more than one employer, and their contract of employment expressly confirms this. Joint employment should be distinguished from arrangements like secondments, where the sole employer lends their employee’s services to a third party, or from sole employment where the contract terms permit the employer to direct an employee’s work to a third party. A joint employment contract should plainly set out the basis on which each joint employer exercises control over the employee, and may provide for an indemnity between the joint employers in the event of an employment tribunal claim...