Although the third party must be identified, the rights of third parties can be created for the benefit of companies that do not exist at the time of signing the contract. With the exception of the above-mentioned exemption with respect to contracts of employment, the other types of contracts for which the draft law is not applicable are foreign exchange, promissip notes, contracts for negotiable instruments, agreements for mutual agreements, contracts of carriage by sea and air, contracts of accreditation and articles of association of the company. To confer this right on a third party, the contract must expressly provide for the right or (b) the duration of the contract must seek to confer a benefit on the third party. However, as can be seen, many types of contracts usually concluded in the field of human resources / employment are not covered by the exceptions provided for by law. However, in order to use the new law, the contract must be separated from the employment contract. In other words, the contract must be a contract in its own right, independent of the employment contract. However, if the law is passed, it will facilitate the implementation of a third of a wide range of labor-related contracts, such as: © Copyright 2014. Mayer Brown practices. All rights reserved. Under current legislation, only the contracting parties have the right to enforce the contractual conditions.

This means that the contract cannot be enforced either by or against a third party (i.e. a party that entered into the contract), even if it intends to confer certain rights or benefits on the third party. Since the bill does not apply to contracts entered into before the coming into force of the regulation, third parties of these contracts do not have any rights vis-à-vis the parties to the regulation. There is nothing to be done for contracts concluded before the entry into force of the Regulation. In particular, for UK employers based in Scotland, with other legislative changes such as the General Data Protection Regulation and changes to the tax treatment of payments instead of dismissal, the time is right to review all style agreements, employment contracts and service agreements to take advantage of changes in the rights of third parties. and to ensure that the new data protection and tax requirements are met. For any questions about the appropriate wording, our employment team is happy to advise you.. . .