This is a preliminary advice note and is not a substitute for taking detailed legal advice in relation to your situation, which may be legally complicated.

A statutory demand is a prescribed form which generally must be personally served. This provides for the recipient, which may be an individual or a company, with 21 days to pay (or compromise) the sum claimed to the satisfaction of the creditor, failing which the creditor will be entitled to issue an insolvency (bankruptcy or winding up) petition.

If the debt is disputed, then either an application needs to be made to the Court to set aside the statutory demand (if served upon an individual) or an injunction application needs to be made to the Court (in the case of a company) to prevent the issue of a petition.

It is not a very high hurdle to overcome in order to successfully resist a statutory demand. However, in view of the importance of the situation, legal advice should be sought as a matter of urgency.

Generally a letter to the creditor or the creditor’s solicitors setting out the legal grounds upon which the debt claimed is disputed is sufficient to secure an agreement that no petition will be presented without giving an agreed period of prior written notice. This will provide an opportunity for further information and evidence to be exchanged between the parties and hopefully which will result in the statutory demand being agreed to be withdrawn.

However if the statutory demand is not withdrawn or no such undertaking is given by the creditor or creditor’s solicitors then an application will need to be made- in the case of an individual to set aside a statutory demand or in the case of a company an injunction will have to be applied for from the Court. The legal test is in essence whether there is an arguable defence/counterclaim to the debt which will reduce the amount claimed to below the insolvency limit of £750.

Responding to statutory demands can be quite difficult. Depending upon the circumstances it is always best to instruct a solicitor with experience in dealing with this type of situation.

Insolvency represents a core area of the work of this firm.

We offer an initial fixed fee interview of half an hour at a cost of £75 plus VAT. We are pleased to undertake this by way of a telephone conference is this should be more convenient.

If you would wish this firm to assist please contact Lawrence Rodkin (partner).

This is a preliminary advice note and is not a substitute for taking detailed legal advice in relation to your situation, which may be legally complicated.

Before any decision is made to terminate the employment of an employee, detailed legal advice should be taken.

The whole area is a minefield and it is very easy to make a mistake and leave yourself vulnerable to an Employment Tribunal Claim.

Not only are such proceedings relatively expensive to defend but they also may result in the award of a serious sum of money being awarded in favour of the dismissed member of staff.

Further, the Employment Tribunal is generally a no costs jurisdiction, and accordingly the legal costs incurred in defending a claim will generally not be recovered, even if the former member of staff is unsuccessful with his/her claim.

In particular it is important that any disciplinary procedures are carried out in a fair and proper way with the offer to the employee of a reasonable internal appeal procedure.

Further it is important to take any grievances raised by an employee seriously. Failure to do so may give rise to fairly expensive constructive unfair dismissal/discrimination claims. A grievance can be raised verbally or informally and in such case the employee should be asked by way of clarification whether they wish to raise a formal grievance to be investigated pursuant to a formal grievance process.

Particular care will need to be taken in relation to employees who are pregnant or who are absent or who have recently returned from maternity leave or who otherwise have childcare responsibilities.

We at Simons Rodkin are able to guide you through the relevant procedures.

We will also discuss with you where appropriate the making of an offer to a member of staff for them to leave upon the basis of a compromise agreement. This can often be the only safe way of resolving such a situation and if undertaken correctly will be materially litigation risk free.

We will also be able to assist you in relation to your employment documentation and we are very willing to enter into an arrangement to provide ad hoc telephone legal advice as and when required via a general file for your business.

You will find that our fees are very reasonable and far less than would be incurred if a Central London firm were to be used. We also have the confidence of the fact that we are a litigation specialist firm with considerable experience in dealing with employment law claims and managing situations which may arise.

Employment represents a core area of the work of this firm.

We offer an initial fixed fee interview of half an hour at a cost of £75 plus VAT. We are pleased to undertake this by way of a telephone conference is this should be more convenient.

If you would wish this firm to assist please contact Lawrence Rodkin (partner).