Legal Question in Business Law in United Kingdom

Employment through a non-registered joint venture

Four organisations are working closely together and have established a delivery team of employees from each organisation. We've termed this a joint venture even though a signed agreement is not in place.

To ensure consistency we want decisions around remuneration for the team to be made a a group seperate from other employees.

We believe the correct way to do this is to second staff to the joint venture. The employing organisation will not change.

Is this correct?

Can a non registered Joint Venture accept secondments ?

Thanks


Asked on 2/22/07, 5:23 am

1 Answer from Attorneys
Richard Howard Richard Howard & CO

Re: Employment through a non-registered joint venture

A Joint venture has no separate legal identity so that it cannot "accept" secondments in the legal sense. Accordingly, since there can be no privity of contract between the staff and the joint venture those decisions would be unenforceable unless formally adopted by the employing entity.

It is possible, and indeed more normal, to create a joint venture entity like a Company or partnership and transfer the contracts of employment to that entity.

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Answered on 3/01/07, 10:52 am


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