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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 66847
Experience:  Qualified Solicitor
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London, none, i would like a lawyer to advise me on my

Customer Question

Hello Pearl
JA: Where is this? It matters because laws vary by location.
Customer: London
JA: What steps have been taken so far?
Customer: none
JA: Anything else you want the Lawyer to know before I connect you?
Customer: i would like a lawyer to advise me on my current contract - i have specifics in my contract that i don't really understand
Submitted: 15 days ago.
Category: Law
Expert:  Ben Jones replied 15 days ago.

Hello, I’m Ben, a UK lawyer and will be dealing with your case today. I may also need to ask some questions to determine the legal position.

Expert:  Ben Jones replied 15 days ago.

What is the contract for?

Customer: replied 15 days ago.
Hello, contract is mine, currently employed in a executive position
Customer: replied 15 days ago.
writing might be fine for now.
Expert:  Ben Jones replied 15 days ago.

OK so it's an employment contract. What specifically would you like to ask about your contract and please also tell me how long you have worked for your employer?

Customer: replied 15 days ago.
Id like to understand a clause i have in the contract related to garden leave.
This contract was set on 7th of April 2017 - since there was an acquisition, but I have been working with the company for 19 years
Expert:  Ben Jones replied 15 days ago.

OK please copy and paste the clause on here

Customer: replied 15 days ago.
First I have a questions about a notice period - here is the section about duration and continuity - do i understand correctly that I have to give a 6 months notice?
Customer: replied 15 days ago.
3.1The Executive's employment shall commence on the Commencement Date and, unless terminated by the Company in accordance with clauses 17 or 23 of this Agreement, shall continue until 6 April 2020 (the "Initial Term"). Either party may terminate this Agreement by giving 6 months' prior written notice during the Initial Term.
Customer: replied 15 days ago.
On the expiry of the Initial Term, this Agreement shall automatically renew for successive one year fixed terms unless either party provides written noticeto the other at least 30 days in advance of the end of the existing term (or any greater statutory minimum notice period).
3.3 Any period of notice given pursuant to the terms of this clause 3 shall take effect immediately, irrespective of the time or date of its receipt.
3.4 The Executive's period of continuous employment for statutory purposes commenced on the Commencement Date. There is no employment with a previous employer that counts towards the Executive's period of continuous employment for these purposes.
Expert:  Ben Jones replied 15 days ago.

Thank you. According to the above clause, the 6 month notice period applies during the Initial Term only, that being the period up to 6 April 2020. Once you have reached that date, the agreement would renew itself on yearly fixed terms. The 6-month notice period would not apply any more and is instead replaced by the clause which says that the agreement can be terminated by giving notice at a time which is at least 30 days before the end of the new yearly term. In other words, if notice is not given within the final 30 days before the end of the term, it would renew itself for another year.

It then states that notice is effective immediately so this all suggests you would not have to give any notice as long as it is given more than 30 days before the contract renews itself (presumably on 6 April 2021).

Does this answer your query?

Customer: replied 15 days ago.
thanks, ***** ***** this mean please - ( or any greater statutory minimum notice period ), I was under the impression that i needed to give a 6 month notice.
Customer: replied 15 days ago.
i also have a termination clause in the contract. Please see below.
Customer: replied 15 days ago.
17.1 The Company may terminate the Executive's employment with immediate effect and without notice, pay in lieu of notice, or payment of any compensation or liquidated damages for cause, which shall include any of the following reasons:
17.1.1 if the Executive materially fails in the performance of his duties as determined by the Board;
17.1.2 if the Executive fails to comply with any material term or condition of this Agreement;
17.1.3 if the Executive engages in any conduct that causes or is reasonably likely to cause harm to the Company’s business, property, or reputation (in each case as determined by the Board);
17.1.4 if the Executive breaches the provisions of clause 15 or 21 of this Agreement; or
17.1.5 if the Executive engages in any wilful, reckless, or grossly negligent misconduct or commits a felony, an act of dishonesty, wilful mismanagement, fraud or embezzlement against the Company or any Group Company.
17Page
17.2 If the Board has reasonable grounds to believe that the Executive is guilty of any conduct or behaviour listed in clause 17.1.1, 17.1.2 or 17.1.3 above, the Board shall (i) give the Executive written notice of the Board's determination which shall state with reasonable particularity the Executive's conduct, and (ii) give the Executive a period of 30 days from the date of the notice in which to remedy his conduct or breach of his obligations (the "Cure Period"). In the event that the Executive fails to remedy his conduct within the Cure Period as determined by the Board, the Company may terminate the Executive's employment for cause with immediate effect and without notice, pay in lieu of notice, or payment of any compensation or liquidated damages.
Any delay by the Company in exercising such right to terminate shall not constitute a waiver thereof.
17.3 Subject to the terms of the agreement, the Company may at its sole and absolute discretion lawfully terminate the Executive's employment with immediate effect by notifying the Executive in writing that the Company is exercising its right under this clause 17.3 undertaking within 28 days to make to the Executive a payment or payments equal to Salary in respect of any period of notice (or unexpired period of notice) (the "Payment in Lieu"). The Executive shall not be entitled to enforce the Payment in Lieu or any instalment thereof as a contractual debt nor as liquidated damages.
17.4 If, having given notice under clause 17.3, the Company receives information based on which the Company reasonably believes that the Executive has committed a Termination Act, the Executive:
17.4.1 shall no longer be entitled to receive any further payments from the Company (including but not limited to any Payment in Lieu or instalment thereof); and
17.4.2 following written notice from the Company, shall be required to repay the Payment in Lieu or any instalment thereof that has already been paid to the Executive, which amount shall be repayable to the Company immediately as a debt.
17.5 In the event of termination of the Executive's employment, however arising, the Executive agrees that he will not at any time after such termination represent himself as still having any connection with the Company or any Group Company save as a former employee and/or Director.
17.6 On termination of the Executive's employment, however arising, the Executive shall not be entitled to any compensation for the loss of any rights or benefits under any share option, bonus, long-term incentive plan or other profit sharing scheme operated by the Company or any Group Company in which he may participate.
17.7 If the Executive gives notice to terminate his employment but does not give or serve the notice period required under clause 3, the Company shall be entitled to deduct from any wages or sums owing to the Executive an amount equivalent to his wages for the period of notice not given or served as agreed18
compensation for the Executive not having given or served such period of notice.
17.8 If the Executive's employment is terminated by the Company for any reason other than by reason under clause 17, the Company shall continue to pay the Executive's Salary (payable at the rate at the time the Executive is given notice of termination by the Company) for a period of 6 months after the Termination Date, to be paid in the same manner in which the Salary was paid to the Executive whilst he was employed by the Company.
Expert:  Ben Jones replied 15 days ago.

The statutory notice period due is 1 week per full year of continuous service, up to a maximum of 12 weeks. What they are saying is that the standard is that notice must be given at least 30 days before the renewal date. However after a certain number of years the statutory notice period will become greater than 30 days and then the longer period will take precedence instead.

Clause 17 is about them terminating your contract, not you

Does this clarify things a bit more for you?

Expert:  Ben Jones replied 14 days ago.

Hello, I see you have read my response to your query. Could you please let me know if it has answered your original question? You can simply reply on here with a quick ‘Yes, thanks’ and I won’t bother you again. Thank you

Expert:  Ben Jones replied 13 days ago.

Hello, not sure if you are having trouble seeing my posts? I have not heard back from you since posting my answer and just need to know if your query has been resolved. If you could please post a quick reply to confirm I would be very grateful. Thank you