Manufacturing Solicitors

Client Intro:

Our client provides logistics solutions for a wide range of companies in the industrial and manufacturing sector, including transportation and warehousing solutions.

Case Overview:

Our client underwent a tender process in which it advertised its need for a new supplier of forklift trucks. Our client’s tender process specified that the forklift trucks to be supplied would need to be custom made to suit our client’s customer’s requirements, including being of an 8-tonne capacity and reaching a height of 9 metres. The forklift trucks were therefore not easily available on the open market.

A dispute arose with the supplier who was successful in the tender process and therefore who provided the forklift trucks pursuant to 2 hire agreements entered into between our client and the supplier. The relationship between the parties began to deteriorate when the trucks began breaking down over and above expected levels and also when one of the trucks was irreparably damaged by fire. The supplier alleged that the forklift trucks were excessively and continuously used in breach of the hire agreements entered into and that our client had refused to pay for repairs which were carried out on the trucks and had also refused to pay for the replacement truck which was provided when one of the trucks was damaged by fire. Finally, the supplier also alleged that our client failed to return the forklift trucks when the hire agreements were terminated. The supplier’s claims were heavily contested by our client.

Sven Clarke, a dispute resolution expert at Myerson Solicitors said:

As contracts are entered into by businesses on a daily basis, unfortunately, contractual disputes are commonplace and can arise in a variety of circumstances. We are experts at dealing with contract disputes and we will provide timely and cost-effective advice tailored to the individual circumstances.

Case study 1

Client Intro:

A leading analytical and quality control testing company.

Case Overview: 

We assisted our client in securing laboratory premises for a Covid-19 related venture.

Our client had particularly bespoke fit out and equipment requirements, which needed to be adapted for and accommodated within the Landlord’s laboratory premises. We also needed to draft a range of protections to ensure our client could operate its machinery without disruption.

The project was time sensitive due to the rapidly changing COVID situation and needed to proceed and complete quickly and we provided commercial solutions to the landlord and tenant fit out works and drafted to protect our client’s sensitive machines from interference from other onsite mechanical systems.

The lease was completed on target enabling our client to start manufacturing in a very short timescale so as to take advantage of the limited window of opportunity for the venture and to provide much-needed support to the efforts against the pandemic.

Case study 2

Client Intro:

An innovative manufacturer of skincare and haircare products.

Case Overview:

We acted for the client in taking a new lease of a warehousing distribution unit on an industrial estate who were looking to expand their facilities.

The unit the client would be occupying was part of a wider development site recently acquired by the landlord, which was still under construction. The transaction was conditional upon the landlord obtaining planning permission for the landlord’s works. Following completion of the landlord’s works, but prior to the lease completion, the client would be allowed early access to the property to carry out their own fitting out works.

Because it was a new build site, careful consideration had to be given to how the site was accessed, whether the estate roads had all been adopted and if all service connections had all will be made.  We also had to ensure that the client would be provided with the appropriate warranties for the landlord’s works.

Upon completing the lease, the client will also enter into a power purchase agreement. This related to the sale and purchase of electricity generated by the solar panels. The solar panels were located on the roof of the client’s property and owned by a third party.  Our corporate team assisted in negotiating and reporting to the client on the terms of the agreement.

Case study 1

Client Intro:

Our client is a manufacturer and trade supplier of concrete products and is based in the North West of England. Our client also produces Aggregate from its quarry which is situated in North Wales.

Case Overview:

We acted for our client in a dispute which arose after our client purchased the entire issued share capital of another company. There was to be a post-completion adjustment in respect of the purchase monies to be paid and the dispute related to what liabilities were to be included within that adjustment. It was our client’s position that the Share Purchase Agreement needed to be rectified because the Agreement did not reflect what the parties had agreed.

We were able to quickly resolve the dispute by negotiating with the other party’s solicitors a Compromise Agreement which provided for the Share Purchase Agreement to be rectified so that it reflected what both parties had agreed.

Sven Clarke, a dispute resolution expert at Myerson Solicitors said:

Unfortunately disputes can arise in relation to share purchase agreements, particularly in regards to the purchase monies paid or payable on or after completion of the deal. We regularly deal with such disputes and we understand the importance of trying to resolve business disputes quickly and, where possible, without court proceedings being necessary.

Case study 2

Client Intro:

Our client is based in the heart of Cheshire and is the manufacturer of high-quality wallcoverings.

Case Overview:

We acted for our client in regards to a contractual dispute which arose with a warehouse and fulfilment company. Following our client terminating an agreement with the warehouse and fulfilment company, a dispute arose regarding services the warehouse and fulfilment company was contracted to provide even though the agreement had been terminated. Our client sought damages for breach of contract in the event the other party was not willing to recommence performance of its services.

We were able to resolve this contractual dispute for our client by agreeing on a settlement agreement with the warehouse and fulfilment company whereby the parties agreed to fulfil their contractual obligations until the contract terminated.

Sven Clarke, a dispute resolution expert at Myerson Solicitors said:

Given that businesses enter into contracts on a daily basis, contractual disputes can be commonplace. We recognise that contractual disputes can arise in a variety of circumstances and we tailor our approach to ensure that our clients achieve the best possible outcome.

Case Study 1: Progress Jiu Jitsu

Case overview:

We assisted this North West-based manufacturer and supplier of martial arts equipment with the exit of a shareholder, which included a transfer of shares in multiple corporate entities and putting in place arrangements for the transfer of certain intellectual property registered in both the UK and the US. 

Ryan Fletcher, corporate solicitor at Myerson said:

The transaction included complex arrangements relating to the transfer of certain assets of the company, settling of loans and the transfer of intellectual property. The intellectual property registered in the US necessitated the involvement of New York-based attorneys to assist with the transaction. It was a pleasure to work with Progress Jiu Jitsu on this transaction and it will no doubt enable the company to continue to grow its offering and customer base.  

Case study 2

Client Intro:

Our client manufacturers adhesives and supplies the same throughout the UK and Europe. 

Case Overview:

We advised our client on the terms of various agreements our client had entered into with several sales agents and what payments would have to be made to the sales agents upon termination of the agreements in accordance with the relevant commercial agents regulations. 

Once the agreements had been terminated with the sales agents, we assisted our client in agreeing settlement agreements with each sales agent in order to bring this matter to a close quickly and efficiently. 

Case study 3

Myerson is the leading commercial agency firm outside of London and we have years of experience in advising both principals and commercial agents.  This case demonstrates our experience in advising principals on their likely financial exposure to an agent following termination of a commercial agency relationship. 

Client Intro:

Our client is a leading Asian food manufacturer and distributor. They specialise in producing authentic Chinese dumplings and sliced meats.

Case Overview:

The dispute came about when the ex-employee (who was our client’s Marketing Manager) resigned and joined one of our client’s competitors. Our client brought a claim against an ex-employee seeking to enforce several restrictive covenants in the ex-employee’s contract of employment relating to prohibitions on the use or disclosure of confidential information and prohibitions on the ex-employee soliciting our client’s customers and competing with our client. Our client was successful at trial in proving that the ex-employee had retained copies of confidential information belonging to our client.

Sven Clarke, a dispute resolution expert at Myerson Solicitors said:

We regularly deal with employment disputes concerning post-employment restrictions and confidential information. We act for both employers and employees and we provide an expert and seamless service to provide high-quality legal advice in a cost-effective and timely manner.

Case study 4

Client Intro:

Our client is based in the heart of Cheshire and is the manufacturer of high-quality wallcoverings.

Case Overview:

We acted for our client in regards to a contractual dispute which arose with a warehouse and fulfilment company. Following our client terminating an agreement with the warehouse and fulfilment company, a dispute arose regarding services the warehouse and fulfilment company was contracted to provide even though the agreement had been terminated. Our client sought damages for breach of contract in the event the other party was not willing to recommence performance of its services.

We were able to resolve this contractual dispute for our client by agreeing a settlement agreement with the warehouse and fulfilment company whereby the parties agreed to fulfil their contractual obligations until the contract terminated.

Sven Clarke, a dispute resolution expert at Myerson Solicitors said:

Given that businesses enter into contracts on a daily basis, contractual disputes can be commonplace. We recognise that contractual disputes can arise in a variety of circumstances and we tailor our approach to ensure that our clients achieve the best possible outcome.

Off the back of the Covid-10 Pandemic and Brexit, the manufacturing sector is currently facing immense challenges, including recruitment and resource shortages.

Manufacturing businesses rely on seamless supply and customer chains. From an employment law point of view, it is crucial for employers in the sector to understand their obligations and support their people in order to be able to maintain production and sales. 

We have set out our top 10 employment tips for the manufacturing sector, which may provide some helpful guidance.

        1. Plan for the “skills gap”:

A shortfall of skilled employees in the manufacturing sector is likely to limit growth in the manufacturing sector in 2022. Technological advances can offset labour needs and increase efficiency, particularly in production. However, this will require the recruitment of employees with different skills, such as programmers and service engineers or retraining of existing employees.

        2. Comply with ‘right to work’ checks:

It is a criminal offence to employ someone without the appropriate immigration status and there are now stringent rules around the checks that must be carried out. Employers must see employees’ original documents that prove their right to work, check they are valid (in the presence of the employee before they start their employment) and retain copies. The rules have been relaxed temporarily due to Covid-related restrictions and will be in place until 5 April 2022. Virtual checks are still currently required and employers should check the latest requirements when they recruit.

        3. Issue contracts of employment:

This is a legal obligation but it is also an opportunity to set out terms around pay, duties and hours etc to avoid later dispute. If written terms are not put in place at or before the start of employment, Employment Tribunals can order employers to pay an award of up to four weeks’ pay per employee.  In addition, Employment Tribunals tend to frown upon employers who fail to comply with this basic obligation, putting respondent employers on the back foot if they are challenged about any other issue.

        4. Be aware of changes in National Minimum Wage rates:

In the Autumn Budget, the Chancellor announced that the National Living Wage (applicable for employees aged 23 and over) will be raised from £8.91 to £9.50 in April 2022. There will also be raises in the National Minimum Wages for all lower age groups.

        5. Beware the rights of short serving employees:

Whilst employees cannot usually claim unfair dismissal until they have two years’ service, there are various other claims that can be brought from the start of employment. Any discrimination claim can be brought from the start of employment. This includes discrimination based on part-time status and fixed-term status. Employees can also claim unfair dismissal from the start of employment if the dismissal is for an ‘automatically unfair’ reason.  This includes dismissals that are connected to pregnancy or maternity, taking family leave, raising health and safety concerns (including Covid-safety worries) and raising concerns about employment rights generally, such as working time rights.

        6. Calculating holiday pay correctly:

If employees regularly work overtime, their overtime pay is likely to form part of their ‘normal remuneration’.  This means that it needs to be included in the calculation of their holiday pay, by referring to an average of the previous 52 weeks worked.

        7. Flexible working request:

If your employees have been regularly working from home during the pandemic, they may wish to continue to do so. Any employee with 26 weeks’ service can request a change to their hours, work location or duties. There is a statutory process for responding to a request and failing to deal with a request properly can result in an award of eight weeks’ pay.  Discrimination issues also often arise so recognising these requests, and responding appropriately, is important. There are also proposals that this should become a right that applies from day one of employment.

        8. Stop former employees from damaging your business:

This requires written restrictions, usually in the contract of employment, stopping a departing employee from joining a competitor or poaching customers or former colleagues for a period of time. These restrictions do need careful drafting to ensure they are enforceable.  However, it is worth the investment, particularly if your business has key people who could cause serious damage to the business if they left.  Without specific restrictions, a business’ options and remedies are very limited.

        9. Handle reorganisations or contract changes carefully:

Employers cannot unilaterally impose changes to employees’ terms and conditions of employment without the consent of the employees.  Therefore, a careful approach should be taken to avoid breach of contract claims. Alternatively, notice can be served to terminate employment, with the offer of re-engagement on new terms, although this should only follow a full consultation process to avoid unfair dismissal claims. If 20 or more employees are affected, additional ‘collective consultation’ rules apply and should be factored in to avoid expensive additional penalties.

        10. Get redundancy processes right:

Data from Make UK, the Manufacturers’ Organisation, shows that 52.5% of manufacturers made redundancies during the first and second lockdowns. With 45% of manufacturers having furloughed 1-25% of their staff, employers will be concerned about another lockdown, without the support of the furlough scheme, which came to an end in September 2021. If an employer is considering making genuine redundancies, it is important that a proper process is followed.