August 7, 2022
Nicola Ross is a partner in the commercial litigation team at Morton Fraser, an independent Scottish law firm.

In some ways, this challenge reflects some of the problems caused by the Corona virus lockdown. Many companies failed to deliver on their promises, which led to increased need for flexibility between buyers and suppliers and a closer look at the exact terms of trade agreements.

Businesses can now be in the same place, and if they are, they should review their commitments as a matter of priority. It is important to review trade agreements to see if time is included in the terms of the agreement, and whether there are clauses to eliminate damages. If a business is likely to breach an agreement, the damages clause may apply, which can create significant financial pressure.

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Violation of the agreement will usually lead to disputes between the businesses involved in the agreement. If the dispute cannot be resolved quickly or easily, it is likely to escalate to legal action, which is likely to be an undesirable action for a business that is already in danger of losing its contract.

The CIPD says the proportion of employers holding difficult positions has risen from 39% to 47%. Photo: Christopher Furling / Getty Images

It is important for any business that is on the verge of breach of contract to seek legal advice and best practices for reviewing contracts, which could lead to the possibility of a full litigation of the dispute. Be reduced

Often, the best way to resolve a potential issue with fulfilling the agreement is to work with the customer to find a commercially viable way to resolve the issue. This may include delivery delays, or delivery and low payments. If a resolution can be negotiated before the formal proceedings, the two businesses are more likely to spend less and maintain good trade relations.

When it comes to breaches, for directors who are already in financially uncertain waters, they should consider whether this breach could be financially catastrophic for the business. This only happens when a major customer or contract is affected. Again, legal advice is important to guide you through the breach as well as the potential reorganization concerns.

Although the interpretation of trade agreements is an important factor for businesses to pay attention to during labor shortages, they should also consider their role as employers.

In fact, many have responded to the decline by offering hefty signature bonuses, and a report from the Recruitment and Employment Confederation and the KPMG suggests that UK employers are paying early salaries in November to attract talent. I increased the record amount.

This is a positive development for the employee, especially for those who have previously been in low-paying jobs or possibly on zero-hour contracts.

But businesses need to consider whether it is sustainable in the long run. If not, there are other incentives for recruitment and retention. For example, employers can improve cooperation for flexible work, or extend vacation time. Better working conditions can be a choice between one employer and another.

It is becoming clear that a silver bullet solution to the current labor crisis within the UK is unlikely to be found. But for businesses that make an impact, they should start by reviewing contracts – both commercial and employment.

Nicola Ross is a partner in the commercial litigation team at Morton Fraser, an independent Scottish law firm.

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