Legal Question in Employment Law in United Kingdom

Contract of employment / formal job offers

Can a UK registered company act on behalf of sister companies in other European (EU, EEA, & Switzerland) countries in the preparation and delivery of formal job offers / employment contracts?

All companies are part of the same multinational group. An HR service centre has been established in the UK.

Conflicting messages are being received about the statutory need for formal offers to be signed by officer(s) of the in-country company.


Asked on 5/02/02, 9:05 am

1 Answer from Attorneys

Richard Howard Richard Howard & CO

Re: Contract of employment / formal job offers

If the UK Company is making an offer or a contract intended to be valid and binding on the European company then the uk company needs to be validy appointed as an authorised signatory under the European Company's articles or other consitution and in accordance with that Company's national law. The directors of the Uk Company need to be very careful that the uk company is validly authorised because there is a danger that they could become personally liable on contracts invaldly signed.

Subject to that a contract may be made on behalf of a foreign company by any person who in accordance with the laws of the territory in which the company is incorporated is acting under the authority, express or implied, of that company ( The Foreign Companies (Execution of Documents) Regulations 1994).

A legal opinion should be sought from local lawyers confirming that officers of the relevant foreign company have authority to contract via the officers or authorised attorneys of the UK Company

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Answered on 5/02/02, 1:23 pm


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