Risk management

Would your retainer letter pass this test?Dear Mr Claus: Thank you for your instructions to act in this matter.

Please read this letter carefully, as it constitutes the basis of the agreement between us.

If there is anything you do not understand or with which you do not agree, please contact me immediately.

Your instructionsYou informed me that you have for many years employed a number of seasonal workers in your toy factory on an informal basis.

You now wish to regularise the arrangement, and have instructed me to draw up employment contracts, governed by English law.

My adviceI understand that these workers have until now been employed on an entirely seasonal basis, and I warned you that the absence of any written terms of employment and in particular holiday and maternity pay might be in breach of EC regulations.

I also expressed concern about potential violations of the Working Time Directive.

After hearing about the nature of your business I explained that you may be in breach of the Unsolicited Goods and Services Act and the Human Rights Act (especially the right to privacy).

I will contact you in approximately three weeks' time when I have investigated this further.

Matters outside this retainerPlease note that I will not be advising, nor have you asked me to advise, on the tax implications of distributing goods without payment and I would strongly suggest that you seek advice from an accountant.

I also recommended you consult a registered patent agent or specialist solicitor about your complaint of 'passing off' by department stores.

You asked for advice about potential criminal proceedings which have been threatened in several countries, regarding trespass, illegal entry to private property and damage to chimneys.

I explained that I specialise in employment law, but I have made an appointment for you to see my colleague in our criminal law department who will be able to help you.

Our chargesI attach a separate letter, which gives you information about our charges and our complaints procedure.

If at any time an account is unpaid for more than 30 days, then we reserve the right to refuse to carry out any further work on your behalf until payment is made.

I confirm that we do require payment in sterling, and that chocolate coins are not acceptable.I will be in touch when I have the draft contract.

Meanwhile, please sign and return a copy of this letter to confirm your instructions.

I also need confirmation of the status of your business and that you have the requisite authority to instruct me.

Yours sincerelyPS Next time you visit the firm, could I request that you use our car park, as the senior partner is worried about all those reindeer on the roof.l This column was prepared by the St.

Paul risk management team.