13. Members in Employment - Professional Practice

Question 1

An employed member should seek to establish the facts and identify the affected parties so that they have a clear understanding of the situation.

If a situation arose that was contrary to professional standards or law/regulations, they should: (5)

Answer 1

1. Raise internally - content and outcome
2. Consider report to MLRO
3. Disassociate yourself
4. Explore externally - such as charity Public Concern at Work or seek specialist legal advice
5. Consider alternative employment

Question 2

Can an employer be sued? If so, how?

Answer 2

An employee can be sued jointly and severally with their employer by a client.

Question 3

Employee’s legal exposure: An employer should consider their own protection and check whether: (3)

Answer 3

1. They have protection in employment contract
2. Clause in LoE - Only the employer can be sued and not the employee.
3. Check they have adequate Indemnity Insurance.

Question 4

Can an employee be sued by their employer? If so, how? (2)

Answer 4

Yes

1. Breach of contract
2. Tortious liability

Question 5

If an employed member provides tax services on a paid basis (other than through their employer) what should they ensure? (2)

Answer 5

1. That they comply with the relevant PII and AML obligations
2. That it doesn’t breach the terms of their employment contract

Question 6

When providing private tax services, what should you comply by?

Answer 6

PII and AML obligations