Month: March 2022

Employee Termination: Legal Considerations and Best Practices

When an employee’s performance falls below expectations, termination may be necessary. The issuance of a termination letter is the formal step to end their employment. Common reasons for termination include poor performance, misconduct, negligence, chronic lateness, absenteeism, and redundancy.

While various grounds for termination exist, employers must adhere to legal guidelines. Employment laws, such as the Employment Act, protect employee rights and outline specific procedures for maintaining appropriate employer-employee relations.

Improper termination can lead to employee dissatisfaction, potential legal action, and financial penalties for the employer. Furthermore, union involvement can complicate the termination process, potentially creating unnecessary tension.

Therefore, before terminating an employee, employers should:

• Consult with labor experts: Seeking advice from professionals ensures compliance with legal requirements.
• Engage with trade unions (if applicable): Proactive communication can mitigate potential disputes.
• Strictly adhere to employment law provisions: Compliance is essential to avoid legal repercussions.
• Provide advance termination notice and compensation: As stipulated in the employee hiring agreement, these actions demonstrate fairness and professionalism.

By following these guidelines, employers can navigate employee termination with greater legal certainty and minimize potential conflicts.

Here’s a rewritten version focusing on clarity, conciseness, and a more professional tone:

IRS Installment Agreements: Options After Offer in Compromise Rejection

A rejection of an Offer in Compromise from the IRS can be concerning, but installment agreements offer alternative repayment solutions. The IRS provides various installment options, including full-payment and partial-payment plans. The plan you qualify for depends on your financial situation, and payment calculations differ from Offer in Compromise settlements.

Full-Payment Installment Agreements

• Guaranteed Installment Agreement:
  • Available for tax debts under $10,000.
  • Full payment must be achievable within three years.
  • The IRS is obligated to approve eligible applications.
• Streamlined Installment Agreement:
  • Available for tax debts under $25,000 (including principal, interest, and penalties).
  • Full payment must be achievable within five years (60 months).
  • Monthly payments are calculated by dividing the total owed by 50. The remaining 10 months are for interest.

Partial-Payment Installment Agreements

• Allows taxpayers to pay only what they can afford monthly, even if it’s less than the full amount owed.
• Payments continue until the Collection Statute Expiration Date (CSED).
• Any remaining balance at the CSED is effectively written off.
• Collection Statute Expiration Date (CSED):
  • Contact the IRS to obtain the CSED for each tax debt period.
  • The statute typically begins when the tax return is filed or the principal tax balance is assessed, whichever is later.
  • The statute generally expires after 10 years, but extensions can occur.
• Payment Calculation:
  • Payments are based on monthly disposable income (income minus expenses).
  • The total amount paid is calculated by multiplying disposable income by the remaining months on the collection statute.
  • Payments must be made in installments, not as a lump sum.

Financially Verified Installment Agreement (Non-Streamlined)

• Applies to tax debts exceeding $25,000 or repayment periods exceeding 60 months.
• Requires negotiation with the IRS and full financial disclosure.
• Monthly payments are determined based on a comprehensive financial review.
• The IRS may require asset liquidation to reduce the balance owed.

Key Considerations:

• Understand the eligibility requirements for each installment agreement option.
• Accurately calculate your disposable income and determine your ability to make monthly payments.
• Obtain the CSED from the IRS to understand the timeframe for repayment.
• Be prepared to provide thorough financial documentation to the IRS.
• Seek professional tax advice.

Landlord’s Guide to Residential Tenancy Agreements

This guide provides landlords with essential information on residential tenancy agreements, outlining legal frameworks and key components for successful property rentals.

Residential Tenancy Agreement: The Foundation of the Rental Relationship

A residential tenancy agreement is a legally binding contract between a landlord and tenant, defining the terms and conditions of the rental. It grants the tenant the right to occupy a property in exchange for rent payments and adherence to agreed-upon rules.

Legal Frameworks Governing Tenancies

Various legal provisions govern residential tenancies, each with specific applications:

• Protected (Rent Act) Tenancy: Applies to tenancies established before January 15, 1989.
• Assured Tenancy (Housing Act 1988): Provides tenants with enhanced security, commonly used by housing associations and trusts.
• Assured Shorthold Tenancy (AST) (Housing Acts 1988 & 1996): The most prevalent agreement for private residential rentals, automatically applied to new tenancies.
• Common Law Tenancy: Applicable when the landlord resides in the same building as the tenant.

Types of Residential Tenancy Agreements Explained

• Assured Shorthold Tenancy (AST):
  • The standard for private residential lettings.
  • Key features:
    • Private property rental.
    • Tenancy started on or after January 15, 1989.
    • Property is the tenant’s primary residence.
    • Landlord does not reside in the property.
  • All new tenancies are automatically ASTs.
• Assured Tenancy:
  • Used by housing associations and trusts.
  • Offers tenants greater security of tenure.
  • Landlords must demonstrate valid legal grounds for possession.
• Regulated or “Protected” Tenancy:
  • Applies to tenancies initiated before January 15, 1989.
  • Provides maximum protection against eviction and rent increases.
  • Requirements:
    • Tenant moved in before January 15, 1989.
    • Tenant lives in a separate building from the landlord.
    • No additional services are provided.

Essential Elements of a Tenancy Agreement

All tenancy agreements should clearly define the rights and responsibilities of both parties. Standard inclusions are:

• Names and addresses of all parties (including guarantors).
• Property address.
• Tenancy start and end dates.
• Landlord and letting agent contact details.
• Rent amount, payment schedule, and method.
• Details of additional charges.
• Deposit information (amount, coverage, protection scheme).
• Early termination clauses and notice periods.
• Responsibility for repairs.
• Subletting and lodger policies.
• Tenancy transfer provisions.
• Rules regarding pets, smoking, etc.

Key Considerations for Landlords

• Agreements can be customized, provided they comply with the law.
• A signed tenancy agreement is legally binding.
• Landlords should seek legal advice to ensure compliance and comprehensiveness.

Pledging of shares consider the act of keeping the shares with the lending company in lieu of credit. Your shares would thence be termed as pledged and the lending company would term the agreement as collateral. During the period of pledging, you’ll continue receiving dividends, bonus, and all sorts of other related benefits. Once the money is paid back to your banker your shares would automatically get released, playing with case you are not able to repay the money amount, the financial institution holds the authority to market off the shares to retrieve the credit amount on the market.

Shares are pledged by individuals together with retail investors. They can even be pledged by companies or their promoters. It might happen that caused by economic slowdown, companies could be so cash-strapped even for working capital they’ve problem raising money from your market and possess very few options playing them to lift money. In such circumstances, pledging shares could be one way out. This is therefore a representation of the corporation’s financial health, its market perception and in the general economy.

Under such circumstances, think the company’s share valuation fails then the company will need to make immediate payments in whole or parts to the lending company or else should pledge more shares. In case, this company fails to accomplish this, the financial institution again props up right to market off the shares to improve the money. Thus, so that a cushion resistant to the unforeseen circumstances, only 50-60% with the share value emerges as loan against securities.

Though pledging of shares by companies results in a negative influence on people’s mind, it is often observed that pledging of shares has, generally, not had the opportunity to affect their share prices. Thick and fast disclosure from the pledging of shares by promoters make the market accustomed for the fact and fortunately marketplace is now not reacting negatively to every one and every announcement of pledged shares.

It is observed a number of times a short while ago that disclosure of pledged shares hasn’t had time to affect share prices. One apprehension always works, and that is certainly, lenders might enjoy fire sale of pledged securities. This might consequently lead to sharp drop in share prices. But as much as the fundamentals go, pledging of shares by promoters has little or no affect share prices.

Analysts feel promoters hesitate to disclose pledged shares because from the same general apprehension that investors fear pleading of shares would cost the promoters dear. The company promoters usually get loans up against the prevailing selling price of shares. At times when lenders invoke the pledges and then sell on promoter shares in the marketplace, value of shares fall below the quantity of loan extended and promoters don’t give the margin to fill this gap.

Promoters sometimes pledge his or her shares in substitution for working capital loans for his or her firms. This can be considered a sign of commitment to your company. It is advisable to usually avoid investing on shares of firms that are led by promoters who pledge their shares to place them threatened in risky ventures. And in circumstances where the marketplace plunges to substantial lows, the promoters who’ve pledged a big part of their shares belly under pressure.

In countries including the US besides promoters but in addition directors are needed to disclose pledges shares. In the UK, this practice of disclosing shares is often a part with the insider trading regulations. In India, depending on the Securities and Exchange Board of India (SEBI) guidelines, all companies must disclose details about shares pledged by promoters within seven days following the promoters give intimation to your companies.

A stock broker, while voicing his opinion within the issue of promoters disclosing pledged shares, said in spite on the current negative bias towards pledging of shares it is an old technique of raising money by promoters plus some even undertake it to support the business in dire circumstances and investors must not be scared if they come to know promoters pledging shares.