law 27


How to manage the risks of LinkedIn


More than 11 million people in the UK are LinkedIn users but there is increasing confusion within companies regarding ownership of connections


Employment law expert Katherine Maxwell from leading law firm Moore Blatch says a lack of case law clarifying the legal issue of who owns these connections means this area continues to be a minefield for employers.


“There are a number of areas which cause confusion and these often come to a head when an employee leaves,’’ said Maxwell who is a partner and head of employment with Moore Blatch.


She said there is confusion in a number of areas from whose interests are being served by these accounts and who owns the professional connections.


“LinkedIn is used to promote the individual as much as, if not more than, their employer’s business, and employees are often encouraged to set up accounts to


will use LinkedIn to compete with them after they leave and are increasingly calling upon us to look at implementing guidelines to protect their business.’’


Some cases have gone to court with rulings providing some guidance. In one instance a court rules that employees leaving a business cannot take with them the LinkedIn contacts their employer builds up and manages – this is particularly so when the connections are used in competition.


In another case the High Court stopped a group of employees who set up in competition from using LinkedIn group information – deemed to be confidential.


Maxwell said that despite a few recent cases involving the use of LinkedIn contacts, the confusion will remain until there are more court cases and companies need to be mindful of protecting what can be a valuable business asset.


create new opportunities in the workplace,’’ she added.


“While LinkedIn is a valuable business and marketing tool, employers are becoming increasingly concerned that there is the risk that their employees


IT offenders to face heavy penalties


In a vivid warning to the business community that embittered ex-staff members can sometimes return with a vengeance, a disgruntled computer expert who used his technical skills to take retribution on his former employers after he was made redundant has failed to persuade the Court of Appeal that his jail term was too tough.


The IT specialist caused chaos after hacking into servers controlling the computer systems of the financial services business for which he had worked.


He was subsequently sentenced to five months’ imprisonment after pleading guilty to modifying computer material without authority.


His lawyers argued that his sentence was too severe. But in dismissing his appeal the Court


observed: “Businesses rely much more heavily on computers these days than ever. These sorts of offences are relatively easy to commit for those with the relevant expertise.


“Businesses deserve to be protected from them and there ought to be an element of deterrence in sentencing.


“This sentence cannot be said to be wrong in principle. The sentence ought not to have been suspended, nor is five months even arguably excessive.“


Shaun Underhill, a partner at Winchester law firm Shentons Solicitors & Mediators, commented: “Local employers can be reassured that the courts are willing to impose heavy penalties on those who commit such actions.“


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2014


She recommends that to manage the risks to the business when employees use LinkedIn accounts, employers should:


• Provide guidance on the use of the account, typically in the form


Landmark ruling could save landlords thousands


Specialist landlord and agent lawyers Property Reclaim, a division of Moore Blatch solicitors, estimates that a recent ruling at the Court of Appeal, could save landlords thousands of pounds, as the Court ruled that just two calendar months’ notice is required to end an assured shorthold tenancy after the end of a fixed term.


For the past 25 years it has been universally believed that, to end a tenancy once a fixed term had expired, landlords had to use s.21(4)(a) of the Housing Act 1988. That section requires a minimum of two months’ notice ending on the last day of a period of the agreement – meaning that, if the rent is payable on the first of each month, a landlord wanting to give notice on the second has to give two full months’ notice plus however many days remain in the month (29 for January), ie the earliest the notice could require possession is after March 31.


This decision means that belief is wrong – landlords only have to give two months’ notice, meaning they could serve notice on January 2 requiring possession on March 2, 29 days earlier.


It is very easy to get the date wrong under s.21(4)(a) because there is only one possible correct date, so countless cases have been struck out for technical failure to comply with the section even though the tenant has received much more than two months’ notice.


The Court also considered whether a notice with an incorrect expiry date and a saving provision (which allowed the tenant to work out the correct date) could be valid. The Court found in favour of the landlord on this point.


Paul Walshe, partner at Moore Blatch and head of Property Reclaim, said: “This is great news for agents and landlords as it’s now much easier to serve a s.21 notice.“


www.businessmag.co.uk


of a policy that sets out clear expectations on appropriate content and appropriate groups for the employee to join.


• Require employees to replicate contacts on the employer’s own databases.


• Take steps to set up the employee’s LinkedIn account (for example, by using the company’s email address, photo and text, and generating a password that is surrendered on termination) and maintain the account using the employer’s systems.


• Add a clause into the employment contract assigning to the employer any interest in professional contacts added to an employee’s LinkedIn account during the course of employment.


• Tailor restrictive covenants to deal specifically with LinkedIn issues.


Details: Katherine Maxwell 023-8071-8094 katherine.maxwell@mooreblatch.com www.mooreblatch.com


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