38 law
Managing cashflow is key to survival for Hampshire firms
Hampshire businesses are being urged to review their cashflow and credit control procedures to ensure they are in the strongest possible position, following the news that a number of high-profile firms have gone into administration
Fashion retailer Peacocks, Game, Blacks Leisure, gift seller Past Times and lingerie firm La Senza are among the latest to be hit.
“The current economic climate means that credit control, and the chasing of unpaid debts, represents an ever greater issue for businesses,“ explains Peter Worrall, debt recovery manager at Moore Blatch.
“Many businesses need to adopt new practices and a focus in respect to credit control, to ensure that they do not become a victim of the economic climate.“
Staff employed at the 13 Peacocks stores in and around Southampton have faced an uncertain time, but the recent history of the chain, which has now been bought by Edinburgh Woollen Mill, should come as a ’wake up call’ for many Hampshire firms, adds Worrall.
He says: “We work with a lot of businesses where we see the same mistakes being made and the signs of trouble are overlooked. Taking appropriate steps early on can help, as if the decision to pursue the debt is taken later there are often few assets left to recover.“
Worrall’s tips for protecting cashflow are:
• Due diligence When starting work with a new client undertake appropriate due diligence as to their financial means, assets and credit risk. This is one practice that can really pay in the long run.
• Spot the signs
Failure to satisfy an outstanding debt may be the first sign a company is
Employment law changes – have you read the small print?
With UK businesses waiting for a greatly anticipated rise in economic activity, employers are being urged to make sure they have read the small print of newly-introduced employment legislation.
One significant change introduced last month was an increase in the qualifying period of continuous employment before an unfair dismissal claim can be made by an employee. The change sees an increase from one to two years.
The new rules, however, only apply to those who began new employment on or after April 6, 2012, and not before – which many employers are missing. Those employed before this date will still be entitled to claim unfair dismissal after one year of service.
Sarah Whitemore, employment law specialist at Warner Goodman Solicitors, said: “The change is something that the Government has introduced in an attempt to boost recruitment. The idea is that employers will have more flexibility to control staffing levels and will not be as exposed to claims of unfair dismissal as they were in the past."
In order to avoid mistakes it is recommended that employers maintain records of the dates when each employee began work and the length of their continuous service. This will be
www.businessmag.co.uk
important if disciplinary action ever needs to be taken against an employee.
Whitemore added: “As several changes have been made to employment legislation recently, now is a good time for employers to check that all of their internal practices are keeping up with new legislation.”
Although the new rules are intended to support businesses and help stimulate economic growth, many employers are still looking at reducing staffing costs and facing problems. Two recent employment cases highlight the challenges faced by employers when making employees redundant. In both of these cases an ex-employee brought an unfair dismissal case against their former employer after being the only employee in the “redundancy pool”.
In the case of Capita Hartshead Limited v Byard, a single actuary was chosen for redundancy and issued a claim of unfair dismissal. Other actuaries were employed in similar roles and the Tribunal, and later the Employment Appeals Tribunal (EAT), both held that the employee was unfairly dismissed as the redundancy pool should have included others in similar positions. Employers will therefore find themselves open to greater scrutiny by tribunals if they include only one employee in a redundancy pool.
In the second case, Halpin v Sandpiper Books Limited, there was a different outcome. In this case, the employee who was in the redundancy pool of one was the only one based in China, where the employer no longer required work. The EAT said that as there were no other similarly qualified employees, the decision on the redundancy pool was reasonable and his dismissal was fair.
Whitemore added: “When using redundancy pools, employers need to take care. They should consider the position carefully and keep a written record of how decisions were made. During the process of formal consultation, they should ensure that explanations as to the selections made are provided and allow the employee an opportunity to question the basis, allowing for review and possibly mediation at an early stage.”
Dispute resolution
Glanvilles’ Havant office now offers a dispute resolution service for businesses and individuals covering a wide range of litigation issues. Sarah Barker-Benfield, an associate solicitor who has been with Glanvilles for several years at its Fareham office, has relocated to Langstone Gate. She brings with her a wealth of litigation experience.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MAY 2012
struggling. This should be acted upon immediately and strong attempts made to recover any monies due. You should also consider putting a freeze on any further work or further credit for companies who fail to meet their invoices.
• Bad debt
Closely supervising your own credit control procedures can help reduce the risk of needing to write off ’bad debts’, which in turn could leave you facing difficulties of your own.
The debt recovery team at Moore Blatch settles 98% of claims within seven days without the need for court proceedings, usually by obtaining arrangements for payment of the full amount of the debt.
Details:
www.mooreblatch.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44