ISOLAS Senior Partner, The Hon Albert Isola CBE together with Partner Christian Hernandez hosted the Chief Minister the Hon Fabian Picardo, KC, MP, and Minister for Health, Care and Business the Hon Gemma Arias Vasquez with a relaxed and informal breakfast meeting this morning where they were able to discuss a number of topics surrounding local businesses and the development of Gibraltar as an international business and financial hub.

Following breakfast, the Chief Minister and Minister Arias Vasquez took the opportunity to tour our offices and meet members of staff as they walked round.

It was an honour and pleasure to host both the Hon Fabian Picardo and the Hon Gemma Arias Vasquez and we would like to publicly thank them for having taken the time out of their busy schedules to join us and support local businesses as well as meeting and interacting with our young professionals.

Over the last year or two, we have seen lots of clients enquiring about lease extensions for their homes. What are they and why are they of value?

The majority of land in Gibraltar is held on a leasehold basis. This means that the head title to the land is Crown Property that is demised by His Excellency the Governor on behalf of His Majesty the King, to developers for a set amount of years, in order to build a project, typically 150 years, and the developers in turn grant sub-leases to buyers for a specific period of time, often 99 or 149 years, of a specific flat/car parking space/ store within a building project.

Most people do not think about the length of a lease until they are either buying or selling a property, but it should be something to think about and it is definitely relevant to banks if you are looking to mortgage a property. Why?

A longer lease term generally provides better security for a lender. It shows that the borrower has a secure and stable living situation for a specific period of time and in the event that the borrower were to default on the loan, makes it easier for the lender to sell on should it need to. A longer lease term usually increases the market value of the property (subject always to other factors such as location, condition of the property etc), making it more attractive to buyers and to lenders.

Generally, lenders in Gibraltar prefer a lease term on a residential property to have an unexpired residue of at least 50 years. This can obviously vary from bank to bank, as each lender has their own policies and different lending criteria.

A lease extension is a simple process that involves entering into a deed drafted/ approved by the superior lessor to the property, the effect of which deed is to grant the lessee with additional years in addition to the term of years already owned.

We have recently acted on lease extensions for owners at Montagu Gardens, Montagu Crescent, Harbour Views, Europlaza, Vineyards and other areas in Gibraltar.

Speak to a member of our Property team if you would like more information on this topic.

 

Change to parental leave in Gibraltar is coming according to Minister for Equality, Christian Santos.

His Majesty’s Government of Gibraltar remains tight-lipped on what exactly the changes will involve, but it would appear that we will see an enhancement in the existing parental leave provisions which came into force at the end of 2001.

The current law provides employees with an entitlement (subject to a to minimum continuous employment of 1 year) to be absent from work for 4 weeks in any given year, for the purpose of caring for a child for whom they have, or expect to have, responsibility. This leave may be taken from the child’s date of birth or adoption until their 5th birthday and is capped at a cumulative total of 4 months.

There is also a question of whether we’ll see a provision for paid parental leave, which is currently an unpaid entitlement, and whether Gibraltar will introduce the concept of paid or unpaid paternity leave, which would enable the partner of a person having a baby to time off, alongside their partner, following the birth or adoption of a child.

Whilst many employers provide unpaid paternity leave as an additional benefit, any statutory paternity leave introduced will require those employers who do not currently do so, to permit this time off as a minimum employment right.

There is also some speculation, as to whether any enhancement of the law, in the area of parental leave, will see changes made to the existing maternity leave legislation which is currently limited to 14 weeks as a minimum with the option to extend this to 29 weeks provided the employee has a minimum continuous employment of 1 year. There is currently no statutory paid maternity leave but employees are able to claim maternity benefit from the HMGoG, currently set at £87.64 per week for 18 weeks.

As it stands, maternity leave can only be taken by a woman and there is no provision to share the same with her partner, but there is suggestion that Gibraltar is lagging behind other European countries including the U.K. which allows for maternity leave to be shared, introducing a new concept of ‘shared parental leave’ in which parents can choose to divide a total of 50 weeks of time off in various ways. The aim is to divide childcare obligations between both parents, irrespective of gender, in an overall bid to minimum gender-bias in the workplace.

Consultation on changes to parental leave in Gibraltar was at an advanced stage in 2019 but any progress was thwarted by the worldwide pandemic, and economic implications that followed.

HMGoG is now committed to progressing the same, and Mr Santos has indicated that current consultation with the Chamber of Commerce, the GFSB and the private sector continues to build on previous work.

ISOLAS is pleased to have supported the Care Agency in their recent £10 million settlement in the personal injury case of C. SULLIVAN (acting by his litigation friend V.M. SULLIVAN) v. CARE AGENCY and ATTORNEY-GENERAL.

The case had been a complex and difficult one over the past seven years and was finally settled with a resolution on the eve before the trial day with the parties reaching an amicable settlement in the amount of £10 million. ISOLAS LLP Senior Associate Danielle Victor and Associate Matt Smith represented the Care Agency and were pleased to have been able to support the Agency over this period and in reaching the settlement.

Fintech expert Jonathan Garcia, Partner at ISOLAS LLP, together with Associate Shakira Marsh-Finch discuss legal issues related to Fintech as exclusive contributors of the Gibraltar chapter for Lexology In-Depth, a leading resource providing analysis of global legal issues by top law firms.

The comprehensive chapter is a must-read for businesses looking to navigate the legal and regulatory landscape of Gibraltar’s fintech industry.

Access the full chapter and gain insights into Gibraltar’s fintech regulations here.

ISOLAS LLP and Fiduciary Group receive 4th consecutive GibSams wellbeing award for their commitment to employee health and well-being programs.

Achieving a 3-star award reflects our dedication to continue improving and expanding the wellbeing support we offer. We’ve developed a structured approach that encompasses the entire organisation, promoting diversity and inclusion, implementing initiatives to address challenging topics like bereavement, ensuring employee wellbeing remains a core pillar of our overall business strategy.

Hayley Xerri, HR Director at ISOLAS and Fiduciary expressed her delight at receiving the award and acknowledged the firms ongoing efforts to support employee wellbeing. She highlighted how wellbeing is embedded in the work culture, emphasising the commitment of both management and staff, who also actively participate in community projects and charitable initiatives. Moving forward, she is committed to expanding these initiatives at ISOLAS and Fiduciary.

The Minister for Justice, Trade and Industry, Nigel Feetham KC , has announced the reconstitution of the Government of Gibraltar Policy Working Group set up in April 2022, that will now become a specialized Think Tank to concentrate on product development within the financial sectors in Gibraltar. The Think Tank will specifically focus on reviewing existing financial products, identifying areas for improvement, and exploring new additions.

Jonathan Garcia, Partner at ISOLAS LLP, was one of six appointees to the Financial Services working policy group back in 2022. Commenting on the reconstruction of the working group, Jonathan said: “It is a privilege to continue to form part of this policy working group and I look forward to working together and futher cement Gibraltar’s position at the forefront of the global financial services sector.

ISOLAS Partner, and Gibraltar’s Branch Chairman, Adrian Pilcher, was recently elected to STEP’s Business Families Global Steering Committee.

Established in 2007, the Business Families Global Steering Committee focuses on what makes business families distinct, their challenges and how to best address them.

STEP is a global professional body, with more than 21,000 members comprising lawyers, accountants, trustees and other practitioners that help families plan for their futures.

Read more here .. Business Families Global Special Interest Group | STEP

 

ISOLAS Partner the Hon Neil Costa was invited by His Majesty’s Government of Gibraltar to speak at their annual Health and Safety Seminar that focused on the theme of ‘Safe and Healthy Work in a Digital Age’. At the seminar, Neil spoke on the legal aspects of Bullying in the Digital Space and Digital Working 24/7 highlighting the legislative duties imposed on employers to ensure the health, safety, and welfare of their employees. For any further information on the above please email neil.costa@isolas.gi

It was great to host the Chamber of Commerce at our offices yesterday where our employment litigation specialists Mark W. Isola KC and Nick Isola delved into and provided their insight to:-

1. The background to the Employment (Bullying at Work) Act 2014, how it compares to protections available in other jurisdictions and the defences available to employers in the event of a claim. There was a particular emphasis on the need for businesses to ensure that their Bullying Policies fully comply with the Act, particularly the on-going requirements which are often overlooked, so that they can avail themselves of the all-important section 6(5) statutory defence under the Act.

2. Why businesses should be concerned about any increase to the statutory redundancy ceiling from 52 weeks’ pay to 78 weeks’ pay when existing statutory entitlements in Gibraltar are already materially more favourable to employees in Gibraltar when compared to England and Wales.
3. The background to the introduction to the Employment (Trade Union Recognition) Regulations 2023 with a detailed analysis of the processes involved, and the employer’s duties, under those Regulations.

Mark and Nick have drafted an article on the Employment (Bullying at Work) Act 2014 which we will be releasing shortly. If you or your business would like to be kept informed of this and other areas of law that we specialise in, please subscribe to our weekly newsletter by clicking here https://bit.ly/3Q0jTEk . Wishing you all a very Happy Christmas!