Agreement Between Group Companies


Even if it`s not usual, employees can often spend time working for more than one company in the group. The judge recognized that it may be more difficult to involve a contract when an employee divides his or her time between two or more companies in the group, but in certain circumstances this may still be the case. The type of scheme in this case, which involves employment by a service company and secondment to other companies in the group, is common in large or even medium-sized enterprises. We offer options in many areas, including how the consulting company will perform the work, how it will be paid, and contractual terms. Although the agreement is intended for companies that may not formalize such agreements, it is a full version that contains many identical provisions for the work contained in our other advisory agreements. MFG UK`s argument in the appeal proceedings was that a contract could only be implied if the parties` actions could only be explained by the existence of a contract between them. This is not the case, as their payment to MFG Services for seconded staff is equally compatible with a number of other possibilities, such as z.B.: the judge concluded that the relationship between MFG UK and MFG Services could only be explained on the basis that there was a contract between them. The judge found that large companies often use a service company, then second employees to other parts of the business, and that the conclusion of a contract was a “significant step” in these circumstances. In this regard, it was also important that the transaction be entrusted to city lawyers who had entered into a contract between MFG Services and its parent company, but not between MFG Services and its subsidiary.

Although he did not doubt the usefulness of these principles, Vos LJ noted that they should not be considered a rigorous review that had to be carried out to involve a contract. The question was whether the agreements between the parties constituted or not: the High Court trial judge ruled that a contract should be concluded between MFG UK and MFG Services. MFG UK appealed the decision. In today`s global economy, most companies work on group structures organized on different, often overlapping, bases. The group`s companies often have informal agreements. B, such as the allocation or posting of an employee`s time between different industries.