A
POLICY DOCUMENT- Contract Breach
oe
Reference information
authorisation
date
Policy type Contract Breach
Ref. Work Package #2
Date 7* April 2014. .
Status Final version Ad,
Author Sarah Ryan
Owner Paul Inwood
Version 7” April 2014.
gs :
stakeholders
Review Date _I One month and six months after releases : bye
Expiry Date N/A. & . ™
Key John Breeden / Lin Norbury (Contract cage Ore Paul Inwood
(Agent Contracts and Policy Mari ‘eit “a MadronJ/R ‘odric Williams
(Legal Services) Craig Tuthill, iad of Net rvices), Angela Van Den
Bogerd (Network Change Operati 1S ae Ational Federation of
Subpostmasters. j
Business Legal se, ent Team, Network 3" April 2014.
input Change
Assurance Paul Intwgod * c ba 4" April 2014.
Authorised @raig uth,“ 4" April 2014.
~ ~*~ ™~
12.11.13
Version 2.0 “Second draft 13.01.14
Version 3.0 _ I Third draft 04.02.14
Versioti4.0 _I, Fourth version 20.03.14
Version 5.0' I Final version 04.04.14
SUBJECT: Agent Contract Breach
1. Executive summary
Page 1 of 19
POL00005989
POL00005989
F3/187/1
This policy document sets out how decision makers within Post Office Limited (POL) may act
in relation to breaches of contract by Subpostmasters operating Subpostmaster Contracts and
Operators of the New Model Agreements. This policy advises the appropriate action to take
when dealing with breaches of contract and provides clear criteria by which decisions should
be made.
2. Scope
The scope of this policy includes any serious breaches by Subpostmasters and material
breaches by Operators of New Model Agreements. In the case of Operators only, it should be
noted that a succession of non-material breaches may constitute a material bre h. For non-
material breaches by Operators the Contract Deployment Team should gefer to bi “ 5
policy and the established corrective action process. For less serious bres by bs.
Subpostmasters, the Agents Contract Deployment Team should a to the cP lighe »/
corrective action process. ge “ \ ff “yy .
r4 “ \
This policy does not apply to Franchisees or Franchise xe i
3. Glossary . 7 ,
Ra 2
Word/term Definition La Sey
Agent(s) Encompasses the terfper gi andSubpostmaster, but not
Post Office franchisees, yy’ \, y
Appeal The appeal Psa ess et ‘: Sul Pbostmaster Contract.
Any sept: thi ape apply only to
subposyg le: sie is 5 of appeal for an Operator.
Assistant An s ae ae post ice Ltd Agent who is registered by
thé’ Posty A to deal with Post Office Ltd
transacti rw i. Driction
Material react A serfous Np of the Agreement between Post Office
(New Model ye Lifted » »Operator which could entitle POL to bring
Contracts)" contrac raction to immediately terminate the Agreement if
\ Tapers re no attempts to remedy the breach within 14 days or
Pr
claggified within the Agreement as a breach which is not
“I capable of remedy.
vale . aly ‘Funding committed by Government to transform the Post
Transformation Office network, to include longer opening hours and more
or NT ip», } accessible branches.
New Model(s) Refers to all NT models, including Local and Mains.
NFSP. The National Federation of Subpostmasters is an independent
member’s organisation, and is the only organisation
recognised by POL as representing Agents.
Non- AI breach that does not give rise to a right to an immediate
material/less right to terminate a New Model or Subpostmaster contract
serious breach
Operator Refers to the legal entity contracted to run a New Model
2
POL00005989
POL00005989
F3/187/2
Network Transformation branch. For further information on
the types of entity or business structure which may be an
Operator, see section 15.0 below.
POL/We Post Office Limited
Remedial action I Corrective action that can be taken by an Agent to remedy a
breach of the contract
Serious breach A breach of condition of the Subpostmaster Contract
Subpostmaster The holder of a Subpostmaster Contract and includes the
term Subpostmistress. é
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4.0 Introduction and purpose . Way \/
A \ tn
4.1 Introduction gs \, \ gf yy’
The formal roll out of the Network Transformation Progra Coreant 012. the
Government initially committed funding of £1.34 billion, 10 rater 6, oot sranithes into New
Model branches, and have subsequently provided funding ot £641 ion (si Biect to state aid
clearance) to transform most of the rest of the sera rk. These math will operate on the
New Model contracts and contain terms and f) en giaetors at do not appear in
the Subpostmaster contract. As such, a eS require de dea
the New Models and Subpostmaster contra
tig ty
with breaches of contract in
‘
\ ty
ion Neassist the Contract Deployment Team
ga prescribed approach, which aids the
a/to be used by the Contract Deployment
if Appeals Managers (where applicable),
4.2 Purpose
The purpose of this policy is to
to deal with breaches of con}
decision making process,
Team, Agents ContractDe
before reaching a decision. ie
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5.0 Background "it ‘Hy ay mi )
This policy, at de ns are to be made, by whom and how. This policy change
requires systemic andjt ehayioural change but does not require contractual change.
. » yv
‘
got
i i. hange préposal
A Agent’ Ss ifeceythany events may occur and it is imperative that the Agents Contract
ben jent Teak is engage in dialogue with the Agent to understand the whole event and
particulate inte context of breaches of contract, why the event occurred. They should then
reach appropriate decisions based on that dialogue. The policy and supporting processes set
out the following:-
- The primary decision that needs to be made at each stage
- The basis on which these decisions are made
- The person within POL who makes the decision
POL00005989
POL00005989
F3/187/3
The policy is to be used by the Agents Contract Deployment Teams, Agents Contract
Deployment Managers and Appeal Managers (where applicable) and does not require any
changes to be made to the contractual agreements, neither New Model nor Subpostmaster
contracts.
6.1 Intervention Events
Intervention events are events which require intervention by POL. These events may be a
result of communication from another team e.g. the Branch Standards Toomer the Audit
Team, or from other sources such as customer/client complaints.
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- Examples of Intervention Events: any indications that the Agent wget » “hy ~
performing their contract properly and/or customer com, its. Al Went: in vent
ey
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could be a material/serious breach or a non- mre bred ch : 4
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a ‘ y ,
- Decision maker: Before any action is taker the Contac _— Team must first
decide whether an Intervention Event pas actu icc d. This should be achieved
through discussions between the CafitractI epldyment 8m and the appropriate
team for example, Branch Standards nd/or Nae ms.
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6.2 Consequences of Intervention’ nts Ny y” v4
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When an Intervention Event, oicuty pit Sy < to support intervention from POL to
the Agent. Any support ; on. hy ii be in the form of telephone-led training
for the Agent, or a visit't ch hs wd S row to improve performance.
ot
(
The aim is to roan i 2a » ve plan for the Agent to improve their performance. The
Contract Pane on jee, Xo decide the type of support intervention, if any, that is
required. This shel mecion? through discussions with the appropriate team for
examp Ny “rer ” Team and/or Audit teams.
rol perators ih w fodels only: If there is no improvement, following an agreed action
plan'with the Operator or if there is a succession (usually more than 3) of non-material
breach this 0 may (depending on circumstances) constitute a material breach and could lead
to immediate Yermination of the New Model Contract.
Decision maker: The Contract Deployment Team should initially evaluate whether they think
the succession of non-material breaches is sufficient to constitute s material breach and
should then seek advice from Legal Services (via email through Paul Inwood, Agent Contract
and Policy Development Manager) before taking any action.
POL00005989
POL00005989
F3/187/4
POL00005989
POL00005989
A non-material breach will be recorded on the Operator's record for a 24 month period. After
24 months, these non-material breaches will be disregarded by POL when considering the
appropriate action to take, and will not be regarded as accumulating to a material breach. Any
further non-material breaches should however continue to be recorded and monitored to see
whether more than 3 are recorded in any 24 month period. When considering whether an
Intervention Event requires any further intervention from POL, it is important to be aware
that doing nothing about a breach may mean that POL is understood to have accepted the
breach and cannot complain about a similar breach in the future. This risk is refevant in
ae
determining the appropriate steps to take when a breach arises. If in doubt, ‘ple
advice from Legal Services (via email through Paul Inwood, Agent Contract and Po!
Development Manager) . &
ey
A \ ‘i ‘ip
Again, for Operators of New Models only: There are certain bi vei in the A foent
classified as being material breaches. They may be os sified as igri breaches
ihe
which are not capable of remedy. The breaches classified vi i olb are not an
exhaustive list and other breaches may also be “Ati ee Ne r may not be
capable of remedy. This depends on the crear sine” a ‘legal advice should
be sought on whether a breach is material and/or oo fo} ty when this is being
considered (via email through Paul Inwood, Ai Sees Policy Development Manager)
tty
For material breaches that are cape 4 of re a4 must be given a 14 day*
period in which to take remedial q iy We ca aed by using the appropriate
letter found at the bottom ofith iS wit follow up visit or call after 14 days, as
necessary, to check whet r the ay remedied.
&
If the breach is not remé ene in 14 >. 4 further action will be required. This will be
dependent on the'fac Bach be and guidance should be sought from Legal Services (via
email througinfiay iy “et : ntract and Policy Development Manager).
%
*in ext wxohaes circ! ek the Contract Advisor may decide to allow a longer period to
re dy'the each bey nd the 14 days prescribed in the Agreement. This may be appropriate
ine cumstance ‘far exai ple, where an Assistant will need to be registered but the
registration period is ‘longer than 14 days. It should be noted on the Operators record if an
extens iggivg and a reason provided for the extension.
For Subpostmasters, the current approach remains unchanged. Subpostmasters should be
sent a warning letter, advising of the breach and how it should be rectified.
For all Agents it should be noted that there may be circumstances when an Intervention Event
is also an Escalation Event, in which case contractual action may be required.
6.3 Escalation Events
F3/187/5
Escalation Events are circumstances where a serious, or in the case of an Operator, a material
breach, is identified which gives POL the right to take immediate contractual action and
therefore requires POL to urgently decide what to do and take immediate action. Escalation
Events apply to all Agents unless specifically specified.
- Examples of Escalation Events include but are not limited to: adverse audit findings;
breach of restrictions/private business clause; non-registration of Assistants; loss of
right to occupy premises; breach of data protection or confidentiality obligations;
unauthorised change to opening hours; not complying with regulator §guirements
or training; not attending training provided by POL; and, in the case of op Ke oe;
a material breach which the Operator has not remedied despite
notice of the requirement to do so, or a material breach a is nd
remedy lo in N
e~
AN ty :
- Decision maker: As the action taken by POL is ikea be mi igni icant for serious
or material breaches, it is imperative that ‘th Deploy! int Team is satisfied
that the action they propose to take, i ‘commenturate W Vitithe breach that has been
suspected/confirmed. This should be te. é witht appropriate team for
example; the Branch Standari and gute edn and legal advice should be
sought where sppropring. ors “\ yp"
6.4 Consequences of ante i H Ny )
A, P
Once the Contract Dente am has Ny” that an Escalation Event has or may have
occurred cri mn of were issues and circumstances may be required.
~ AN
aN
the Pe It pakition when an Escalation Event has been identified should not
wood, Agent Contract and Policy
7.0 reson
au’ sion, MgysPeY ion, and POL should only precautionary suspend where the contract
give OL the rah BW Zispend and:
(i) Mnangpll vestigation of the suspected breach is likely to be difficult or impossible
without it; or
(ii) There is a significant risk to POL brand or POL cash/stock unless the Agent is
suspended
In reaching a decision on precautionary suspension POL will take into account all relevant
factors, including but not limited to, the following:-
POL00005989
POL00005989
F3/187/6
POL00005989
POL00005989
(a) Risk to POL funds;
(b) Risk to POL brand or reputation;
(c)The source of any risk and if the risk can be mitigated i.e. whether the Operator or
Subpostmaster himself is thought to pose a risk, or whether the risk is limited to some
or all of the Assistants*.For example the Operator may have been completely unaware
of the circumstances leading to an Escalation Event, perhaps because they were
;
absent. A
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4
(d) Impact of suspension on customers and clients; Nt
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(e) If someone has suffered loss or damage as a result of ay
°
breach, the identity of that injured party i.e. whether ana ‘ limi yor
whether customers or clients have also been dama; N \Y
(f) Whether the Agent has cooperated tonne oe Esc ation Event
including whether there has been any Ko. byt fleagent yer it up;
ue ip,
(g) Any relevant information provides La the A ata inet an informal discussion/
telephone conversation/ written expla tiot alt i is Yar the Contract Advisor to exert
their judgement in each indivi dual Xe, Sis whether the circumstances and
reasons given are pertinent ithe rea Pion
On he
*For Operators only, the > (rote Lear nay Iso give POL the right to obligate the
Operator to suspend all i 4 ove thes ifvolved in the operation of the branch and
where precautionary sgpeh ey be necessary, this option should also be
considered depending on mth cf estan
Ala
The Contract Reploy Sra decide whether, on the facts, it is necessary to
precautio: < su! a peent $0 that they are not involved in the operation of the branch.
Th cava co rein will complete the appropriate pro forma at the bottom of this
dobre an Ning final decision will be made by the Agents Contract Deployment Manager.
If the Pages cortract Deployment Manager decides to suspend the Agent, a letter should be
sent to tl ingetht to inform them of their suspension (which can be found at the bottom of
this document).
7.1 Investigation
It may not always be necessary for further investigation to be carried out, if it is deemed to be
inappropriate or unnecessary, for example, insolvency of the Agent. The Contract Deployment
Team will need to reach a decision, based on the individual facts of each case if preliminary
F3/187/7
enquires suggest there will be no further investigation and Legal Services should be involved
promptly (via email through Paul Inwood, Agent Contract and Policy Development Manager).
The final decision rests with the Agents Contracts Deployment Manager.
7.2 Discussions
For Subpostmasters:
is formally recorded and copies of notes provided to the Subpostmaster. POL’ ‘Position on
their option to have representation present at the RTU remains unchanged from e Friends,
at Interview policy which can be found at the bottom of this we wy. >» 4
The process remains unchanged, they may be invited in to a Reasons to Urge interview which
>
g
Informal discussions: r( - AN
For Operators only:
- There will be no Reasons to Urge a \ ‘ty ih,
A
- Operators of New Model Agreements ten ren x pr to an RTU or to attend an
informal discussion ay 4 ats the wee Advisors investigations.
4 may decide to invite the Operator
in 14 days from the date of the alleged breach
ch, if the Contract Advisor deems it necessary
stigation.
- In exceptional circumst; S, ’ grin
for an informal disc Yn ally
to discuss the ci wh of e ‘
and/or helpfulén WW oft i
- This shoul = d bi : e Contracts Advisor as a fact finding exercise, but an
opportunity 6 tell the Contracts Advisor their view of the on the
cir states Bad jing to the ne breach and their explanation of how or why the breach
Urred.
ay
y
4
( This i int be I discussion should not be led by the Contracts Advisor and should be an
iain id the Operator to present an explanation.
: Weinifnal discussion should not be formally recorded although it is permissible for
the Contracts Advisor to take a brief contemperanous note as an aide memoire only.
The purpose of any such notes is not to be a formal record and as such a copy should
not be provided to the Operator, although the Operator may take his own notes if he
chooses. The original notes should be kept by the Contracts Advisor and retained
according to the normal business rules on document retention.
POL00005989
POL00005989
F3/187/8
- If the Contract Advisor needs further clarification on matters but the Operator does
not wish to meet, the Operator may provide a written explanation to provide detail on
how and why the breach occurred. Alternatively the Contract Advisor may telephone
the Operator to discuss these matters. It is important that this remains informal and is
not comparable to an ‘interview’.
Representation/persons present at informal discussions:
Operators of New Model Agreements do not have a right to representation ® ask another
person to accompany them at any informal discussion. My,
.
To have a representative present would formalise this discussion and go of . the wn)
the purpose of the informality of this discussion. 4 \" Ty ity
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However, in exceptional circumstances the Contracts inde (- dee it or for
tomatic right. This
another person to be present. It must be "the attendee not an u
may be if the Contracts Advisor feels that the sender « ano i {i would assist
with the progress of the discussion. % 7
Ke. — ty 6
If an Operator asks if they can bring another,pe én anasne ee ‘Advisor deems it
appropriate for reasons similar to those above, was ar be carried out by the Contracts
Advisor to determine: aa ~\
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iy
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they are still active and registered with POL
ys ‘to the investigation themselves
- Their full name A
- In what capacity they. he en
- If they are an Agent/As: aN . e
- That the a's din is n
The Contracts Advisor should X“. rmit persons who would through the course of their
usual work be expe mn Sse pertaining to POL operations.
i, ah
An Operator must I Dh a inner to the discussion acting within their capacity as a lawyer
withoutfir ri C ontracts Advisor, as this will formalise the procedure and is not
POt's intenti the Operator wishes to meet with a lawyer, Legal Services should be
cted promptly,(yia email through Paul Inwood, Agent Contract and Policy Development
r) and ne should be liaison between with the Contracts Advisor and Legal Services
hether a lawyer from POL is required to attend and arrange availability if
necessary. ‘aa
Contracts Advisors must not refuse to meet the Operator, once they have been invited to the
informal discussion. To do so could have significant legal implications.
7.3 Decision making
POL00005989
POL00005989
F3/187/9
POL00005989
POL00005989
In making a decision about what contractual action to take against an Agent (if any), the
Contract Deployment Team will take into account all relevant factors, including but not limited
to:
a) Impact and on-going risk to POL funds
b) Impact and on-going risk to POL brand and reputation
c) Effect of termination on customers A,
d) Effect of termination on the Agent . “ sn
e) Any relevant information provided by the Agent including an) tn \ d
f) Direct involvement or responsibility of the Agent te a whe led iB'the
breach a. \Y
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g) Impact of the breach (as distinct from the ie sed Yo customers,
suppliers and partners fl AN ty ys
om. aN tp, ati :
h) Identity of the injured party ane who has* ee oss or damage as a result of
the breach, and whether this part peusts: or clients
tiny,
i) Agent's history i.e. servied NS vious written directions/warnings
etc.
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j) Legal advice a, > ty . \)”
The Contracts Team the hy det «d reasoning in relation to the above in the pro
forma and ole by eS a referred and others disregarded.
y’
There shor mane And consideration should not begin with one particular
vor rene i. % 3 ers. Where one or more criteria has been ‘weighted’ the reasoning
ii be m: far in the pro forma. If the Contract Deployment Teams are
pre te withla ind in that requires a more complex assessment of the circumstances
they . a i. novel the advice of Legal Services (through Paul Inwood, Agent Contract
and % ley Development Manager, via email).
ena”
Unlike Subpostmasters operating Subpostmaster contracts, Operators of the New Model
agreements who disagree with decisions made by the Contract Deployment Team will not be
privy to automatic appeals when a decision has been made to terminate their agreement.
There is no appeals process for Operators of New Model agreements.
8.0 Types of Action
F3/187/10
POL00005989
POL00005989
Operators
Operators of New Model contracts may be subject to the following actions by POL for breach
of contract:
(i) Written direction with request for remedial action within 14 days (or longer if deemed
appropriate by Contracts Advisor, see section 6.2 for further guidance)
(ii) Written direction (this may be subject to conditions; e.g. repayment th ) missing
POL cash/stock and/or the Operator being willing to accept support mn %
4
4
(iii) Suspended termination dy, Y
(iv) Giving notice to terminate for the period specified in tho ract, My Yor
if agreed in writing with the Operator. For Mains, ra r party give M2 months’
s' from the start
2 mot
notice to terminate. For Locals, either party can, ‘ignths'n Ser In
each case, the notice cannot be given so as to ni befor jn:
date. ally
(v) Immediate termination
Operators of New Model Contracts do not ha eth Ban
the Subpostmasters' contract and Peer gy ya
that should be taken (see section, bpostm Ve
fi
In particular, it is not correct caus e - war ng” in letters to Operators. It is imperative
that we digress from phrai - commonly asso d with contracts of employment. Operators
should instead receivela I le fling Ayton direction’ of the appropriate course of
r
action they are expected A a remedy the breach.
ye
As previously: SrA »f New Models do not have a right of appeal against
decisions fe! ith
tract Deployment Team when a decision is taken to terminate their
at aes i additio 1 Operators are not able to resign to avoid termination; however either
or the O
ae The. 12r6 months' notice cannot be given so as to expire before 12 months'
start dpe But, if POL and the Operator agree, less than 12 (or 6) months' notice of
emingl earl be given.
tor can give 12 months' written notice to terminate (for Mains) or 6 months
(for
from
Subpostmasters
Subpostmasters operating Subpostmaster Contracts may be subject to the following actions
for breach of contract:
(i) Written warning
F3/187/11
POL00005989
POL00005989
(ii) Final Written warning
(iii) Suspended termination — this may be offered subject to conditions
(iv) I Three months’ notice to terminate
(v) Immediate termination
Agents operating multiple branches A.
If an Agent is operating multiple branches on different contracts (e.g. Sw! asta ind oe
Model contract) Contract Advisors must take the contractual action 0 ste rahe
under that specific contract and ensure they are dealt with distind \ } — o W
os ‘y cy
If an Agent breaches their Subpostmaster contract and ae aw y ahs able to
operate their New Model branch. yy ~ y
However, if an Agent breaches their New Model contrac Pend eN ated POL also
has the right to terminate their Subpostmaster agree! ent, Be cause w Model contracts
contain a provision that allows POL to do this. Legal a si an before making a
decision on this (via email through Paul Inwg6d, Agent Gentract id Policy Development
Manager) ‘My yo %
"oe - \ )
9.0 Proportionate outcomes A . \Y
Any decision made by the C m must be based upon the principle of
‘balance of all probable ah, w with the severity of the breach. The
Contract Deployment ath ould ‘“ Westigate the full implications of taking
contractual action and give ae wer nto the other, often less severe, options available
to them.
Ae = AN
9.1 sal is A hy,
%
pa ‘\ \ y
If st spended tefmination is considered in any case, legal advice should always be taken (via
emt ; bag ie Paul inwood, Agent Contract and Policy Development Manager.) This is because
there signific nt risk that if other contractual action is not taken promptly, the right to
in. Sa breach may be lost and/or the breach may become accepted under the
contract as adequate performance for which no remedy is available to POL.
‘ yr
Whilst immediate termination may be appropriate and/or necessary in circumstances where
there is a substantial risk to POL cash and stock, the use of suspended termination may be
appropriate in some circumstances. This decision should be taken by the Contract
Deployment Team, ratified by the Agents Contracts Deployment Manager. Suspended
termination would allow the Agent to continue running the branch.
F3/187/12
This approach will be used in exceptional circumstances and may be considered appropriate
where there is a clear breach of contract, and an action or omission by the Agent does
warrant immediate termination but evidence is presented that suggests there is low impact of
the breach (as distinct from the proposed immediate termination) on customers, suppliers,
partners and low culpability (e.g. absent Subpostmaster/Operator and Assistant theft). In this
instance, the Contracts Advisor should consider immediate termination of the contract but
suspend that termination for a period of 12 months.
determines, be that attendance for re-training, exclusion from a branch of na :
Assistants/managers and/or improvements to internal monitoring Processes. Thi youre Vy
be designed as a punishment but as a means of rectifying weaknesses wi it whith
Post Office cash, stock or reputation could continue. The Agent a ave moe
breach in question. gf i by ~
Furthermore, the Agent must comply with whatever conditions the Contractor
\
If further material breaches are committed in the 12 month én d the oy cdhoeployment
Team should assess the seriousness of the most recent brea ach in % ation fi the previous
breach. If both breaches are of a similar nature “4 bie 2 éond breach,is itself a material
breach for which the contract could be immedigt SK the contract Deployment
Team may decide to consider terminating the’Ageht' 5 ¢ dontra I immediate effect. Legal
advice should always be sought before do
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It is essential that the xo Ng am ensure that an accurate record of the
10.0 Recording Database
breaches is maintaine wy Sr audit trail to show the decision making
process, including rati atio vie. 2 Per aus Deployment Manager in addition to any
evidence that yan byt
Agent. Records of notes made when in communication
(ech according to the business rules on document
with an Agent shot nd
reatly re ed challenge were to be brought against POL, legal or
retention. i
otherwise, 4 A
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11.0, Process
Process nas
Lin this document and should be consulted for every case.
maps to aoa the Contract Deployment Team with their decision making are
Oy i)
12.0 Applicability
This Policy applies to Subpostmasters, and Operators of Main and Local agreements, and to
communications and actions via the Contract Deployment Team in response to breaches of
contract by Subpostmasters and Operators. It does not apply to Franchisees or Franchise
Agreements.
POL00005989
POL00005989
F3/187/13
13.0 Related policies
Burglary and Robbery
Changes to Opening Hours
Underperformance
Corrective action
NT fund recovery in SPMR contract termination cases
NT fund recovery in post agreement start date termination cases
PART 2
14.0 Entities and business structures
It is important to understand who or what is legally responsible d
Agreement or Subpostmaster Contract. The person or entity,respons
may not be the same as the people who are Assistants wii f
operating under contracts for services and are not empleyees fo} Le
% : ‘hy
The most common types of business structures are e
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POL00005989
POL00005989
This isa
an indivi
Individual or "sole trader" f
not ohypehalf of one of the other
Cont M es in this table. This means that this
,* ividual ; aly
Al Narra ¢
. Pyson who has entered into the contract as
:
ponsible, subject to the terms of
yess ) arg responsible for running a limited company.
It c fay itself which it is legally responsible,
e
va \ 4 sae ‘the terms of the contract. Whilst POL may
‘a Ny . Yy addre$s correspondence to an individual within the
& Wt %, hy pany, such as a director, it is the company itself which
—-_ A tt, ‘is legally responsible for its actions. A company is
/ ‘iy “ therefore not the same as its directors or employees.
y yy Every limited company has shareholder(s) which are
gt \ y
.
: ‘ —- Ny ‘ people or organisations who own shares in the company.
. \ aa! A director may own shares in a company but does not
\
have to.
This is a business structure in which each partner shares
personal responsibility for the business. The partners may
be individuals or limited companies. Partnerships are
often referred to as "firms" (e.g. solicitors’ firms).
a,
15.0 Standard letters
LIST OF LETTERS TO BE USED IN NEW MODEL CONTRACTS AND SENT TO OPERATORS (THIS
INCLUDES COMPANIES AND PARTNERSHIPS).
F3/187/14
POLO00005989
POL00005989
THESE LETTERS ARE NOT TO BE USED FOR SUBPOSTMASTERS OR FRANCHISEES.
important note:
A number of thes
‘s include footnotes which are for your use. The foototes must be
deleted before are sent out and by way of reminder they have been highlighted in
pink in the letters. Footnotes are deleted by selecting the footnote number e.g. 1 where it
appears in the main text and pressing delete. Footnotes cannot be deleted from within the text
of the footnote at the footer of the page.
Highlighted text should be selected to be Included in the letter if ap
highlighting should be removed before
is not appropri. ould be deleted, Gui
propriate, and if so, the
ietter is printed, Alternatively, if the bfohlighted text
nce is given on this in the footnel
’ te \
Breach is identified HAVE NOT suspended Operator: a
&, a
5
Al Notification of A problem is identified THe. tor is Rot suspended. A
investigation letter notifies ek is in igati sg
‘ey
A
1 Notification of X
investigation(étter dc %
Number Letter name Description
XQ ‘ye
leted a a holding letter is
them.
A2 Update on investigation
r
Ps
°
AS Invite to informal ’
discussion
oN,
A \ ;
A \ Bh, ig mal%20discus
A4 voice of ct Reh i The investigation is concluded and the Operator has not
ligation. \\, ,I committed a breach or the breach has been resolved and
ly as the O
~~ :
\\
Y A4 notice of
conclusion of investigi
tor is informed the investigation has concluded.
pal be
bo = to The investigation is concluded and the Operator is found
Ny re iv
A
reach to have committed a breach and is invited to remedy the
breach within 14 days. This is a written direction rather
Xt ) than a threat to terminate.
. (Note that this letter could be sent as the first contact with
the Operator about the issue depending on the
circumstances e.g. if there was no issue requiring
investigation.)
AS Written direction
to remedy breach lett
AG Notice of termination of _I The investigation is concluded and the Operator is found
15
F3/187/15
agreement if breaches
not remedied
to have committed a material breach capable of remedy/
is failing to provide the Products and Services to the
standards required and is invited to remedy the breach
within 14 days failing which the Agreement will be
terminated.
AG Notice of
termination of agreen
AT Notice of immediate Immediate termination following a failure to remedy
termination where breaches within 14 days as required by letter A6 giving
breaches not remedied notice to remedy. # %
\
AT Notice of ‘ ty 4
immediate terminatior il, . “Ya, y
¢ \ om .
AS Notice of immediate The investigation is coficiuded the oi
termination Agreement is imm eer"
AS \ yy”
‘ye
=
AQ Notice to terminate in 6 we for locals or 12 months'
or 12 months ed not be any breach for this to
ol considered as "termination for
Ps
>
Ay, I :
an te
A ON i
A10 A ‘S a Létter notifying a locals Operator of the consequences of
= OC; y termination.
yin QNL “ith,
( ~ \Yy 10 Consequences
, pl. \ ” of termination for Loc
Saangegyences of
termination for MAINS
LY
y
Letter notifying a mains Operator of the consequences of
termination.
of termination for Mai
Breach is ident
tified HAVE suspended Operator:
Number
Letter name
Description
Bi
Confirmation of
suspension template
letter
Aproblem is identified. The Operator is suspended. A
letter is sent to confirm suspension.
16
POLO00005989
POL00005989
F3/187/16
B1 Confirmation of
‘Suspension letter.doc
B2 Consequences of Aletter is sent to inform the Operator of a locals branch of
suspension template the consequences of suspension.
letter LOCALS ONLY
nee
B3 Consequences of A etter is sent to inform the Operator ofdlipains branch of
suspension template the consequences of suspension. .
letter MAINS ONLY % N ‘
We ‘ )
ate sy,
‘ats By
B4 Update on investigation I The investigation is taki aN than .y anda
— suspended Operator Ee] letter is ae
precedent letter a7
B4 E) on es
mcnizareon % »
a
BS Invite to informal A lsier to arrangéan informal. discussion.
discussion . My %
‘ »
”
A,
Ay, p20disc
or %
B6 Notice of, xe estigation is concluded. The Operator has not
investiga’ ani mitted a breach and is reinstated.
ch \
' ens y
~ % conclusion of investigi
\ *
The investigation is concluded. The Operator is found to
Be
Reinstatement of
erator Subject to
OPI OF
)
F
have committed a breach and is reinstated subject to
conditions.
tet
ete nt
‘amy
Bs
Written direction to
remedy breach
The investigation is concluded. The Operator is found to
have committed a breach and is invited to remedy the
breach within 14 days. This will be either before or after
the Operator is reinstated depending on the
circumstances and the type of breach. This is a written
direction rather than a threat to terminate.
17
POLO00005989
POL00005989
F3/187/17
88 Written direction
to remedy breach lett
BO Notice of termination of The investigation is concluded. The Operator is found to
agreement if breaches have committed a material breach capable of remedy and
not remedied is invited to remedy the breach within 14 days failing
which the Agreement will be terminated.
ms
‘
B9 Notice of \
termination of agreen \ )
\ >
ty .
B10 Reinstatement as This letter is to be used whee the Op Beret regiecice the
breaches have been breaches following recei prot iy letter sana a @jresult
remedied and the Operator is we
agreement will not be ‘ v
terminated ‘ty ‘ye
B10 nonstate X \
as breaches have bee, 7
B11 Notice of immediate we Was notice to remedy.
termination of
agreement where ee
breaches not remedied wy
B12 Notice of immediate / aghon.
termination AM,
jn, \
fl \
B13 Noticestéiterrigs iG Sigg2 months’ notice to terminate.
or 12 moni *
, %
~AY My B13 Notice to
oe i, “I terminate in 6 or 1217
B14 Cor ‘ es Of Letter notifying a locals Operator of the consequences of
aM termin: nH OCALS I termination.
poe, ‘ ‘ial \?
( ‘ita! Bi4 Consequences
\
of termination for Loc
Nnsequences of
‘termination for MAINS
ONLY
Letter notifying a mains Operator of the consequences of
termination.
B15 Consequences
of termination for Mai
Breach is identified BUT assistant/manager requires suspension/termination
POLO00005989
POL00005989
F3/187/18
POLO00005989
POL00005989
Number Letter name Description
C1 Notice requiring Aproblem is identified. An assistant(s) is suspended. A
suspension of Assistant letter is sent to confirm suspension.
template letter
C1 Notice requiring
Suspension of assista
c2 Update on investigation - I The investigation is taking longer than anticipated and a
suspended assistant holding letter is sent to the Operator. d
precedent letter 4 i)
C2 Update on \ )
investigation - susper “Woy = >
C3 Invite to informal Aletter to arrange an inf¢ I discu: (ons
discussion * XS v
8 QNY
€3%20Invite%201 < ‘ty \y
20informal%20discu: ty
on a. wo ~
YY
y
& ™
C4 Nolcs a ,
The investigation is concluded and the
Assistants/Manager is “cleared” and is reinstated.
C4 notice of
conclusion of investigi
cs
The investigation is concluded and the Assistants/Manager is found to be
failing to attain the required standards and are required to be replaced.
C5 notice of
requirement to replac
a result of the inw
rh of the Ag!
erence to the fac
fo replace an unsul
which gives Post Of
itabie A:
sement, then the appropriate lette:
of the specific situation, This includes
ant or Manager in a
fice Lid the right to terminate the Agre
overs that the Operator has comm da
from Se snario A can be used, with specific
situation where the Operator
ordat nce with Part 2, clause 16.3,
ne,
19
F3/187/19