Hi. I need advice from someone who kows something about employment law. If you signed a contract many years ago to work for a company based in Bermuda, which pays you from Bermuda, so avoiding the tax liabilities of the UK(even though this company is a part of a much bigger UK group), if you then hand in your notice and refuse to work the last 3 months of notice period, what would be the likely outcome. It's slightly complicated but is it likely they could make you work the notice?
Location: Propping up bars in the Lands of D H Lawrence and Bishop Bonner
Age: 48
Posts: 5,734
No, they can't make you work it but, if you refuse to work your notice they could sue you for breach of contract which is what you will be doing.
However, if they refuse to let you go and want you to work your notice period, they would be foolish as you could create a lot of damage in those three months.
Your best bet is to be asked to be released straight away and only be paid up to the day you leave.
Even if you leave straight away, they must pay you up to the day you leave. Then they would have to take you to a tribunal to recover damages from you for you breaking the terms of your contract.
As far as I know, that is how it works in the UK. They would probably not consider it worthwhile to pursue in the courts.
However, if you need a reference from them, they would be perfectly entitled to tell a prospective employer what you did and it may not look favourable. They cannot libel you in a reference but they can state you broke your contract.
However, if they refuse to let you go and want you to work your notice period, they would be foolish as you could create a lot of damage in those three months.
OTH, you would be very foolish to even give the suggestion that you could cause damage, in fact, my advice based on 20 years+ in the business would be for you to approach them with the facts, and ask them what they would like you to do.
They have every right to ask you not to come into work, but to pay you your notice, and insist that you stay at home and do not start your new job until your notice is up. It's called gardening leave, and quite common in the banking sector, for example.
Given that you wish to retain a good reputation in the industry, and might even get to work for them again (by acquisition, for example, or because your boss joins the company you are joining) you should do your very best to be on top behaviour!
You should of course check your contract to see which legal system will be brought to bear in the event of a dispute. If it's with a Bermuda-based company it's highly likely that it will be Bermuda employment law which governs it. Common sense should be your best guide, however.
If you signed a contract many years ago to work for a company based in Bermuda, which pays you from Bermuda, so avoiding the tax liabilities of the UK(even though this company is a part of a much bigger UK group)
Slightly off subject, but from a tax perspective, if you are a UK resident, then the fact that you are employed by a Bermuda company and paid offshore does not normally exempt you from UK tax, and unless there are bilateral tax treaties, you could even be double taxed!
The Inland Revenue recently won its case against Barclays bank, requiring Barclays to disclose to the revenue information about all customers with offshore account transactions (Barclays had refused to disclose the information on privacy grounds, but lost). This highlights the revenue's current intent to pursue offshore income for tax. They are about to offer an incentive if you disclose voluntarily (we won't prosecute but may fine you!), but have said they will prosecute significant cases if they find them. A cousin of mine is working on the (government mandated) project in Barclays looking for people with potential foreign income accounts, and I was gobsmacked when he told me how far-reaching the investigation is - anyone who has had funds transferred into or out of a UK account from abroad should be aware that information about those transactions may be made available to the revenue!
Of course if you are declared to the revenue as not UK resident, ignore all the above because it's b*ll*x for you, or your tax lawyers may have come up with some clever stuff that we mere mortals are unaware of!
It was 'traditional' in the motor industry to announce that you were moving to a competitor - result, instant release.
Not just the motor industry. Metal processing, where daily price of metal can make/break a deal. Result: Resignation ... door ... bring the company car back when your notice is up ... goodbye. Was my father's business. Most decoration jobs done during the period of his notice whenever he changed jobs.
