On the third day of Christmas - Beware of unwanted "gifts"
As we head towards the end of the year, for many businesses thoughts turn towards the annual Christmas/New Year shutdown period.
However, bear in mind that not everyone closes over Christmas and the New Year.
Experience has shown that there is a tendency for some to take advantage of distractions and closures that come with the holiday period – specifically to serve documents close to, or during, the holiday period.
Given that some documents, particularly Creditor’s Statutory Demands for Payment of Debt and payment claims under the Building and Construction Security of Payment Act, are subject to strict statutory compliance periods, it is important to ensure that you are not caught out by a document that arrives during the holiday period. The consequences of missing a time limit to respond to take action in response are serious and can significantly restrict your options.
We recommend that you consider the following:
- Review your accounts payable in the lead up to the holiday break. Are there any accounts that are outside trading terms? Are there any creditors that are likely to use the holiday period to apply extra pressure by issuing a Creditor's Statutory Demand?
- If you are shutting down over the holiday period, make sure you communicate this to customers and suppliers. It can be as easy as a simple message in your email signature.
- Where is your registered office? Is it a professional services firm? If so, are they shutting over the holiday period? How long will they be shut for and what have they put in place to monitor incoming mail (and emails) during that period?
Don’t let the New Year start in the wrong way. A bit of planning can save you a lot of time, heartache and money.Back