Corporate & Commercial

Ferbrache & Farrell LLP’s corporate department offers full service corporate, banking and commercial cover and is able to advise on all aspects of Guernsey corporate and commercial law, including banking and finance, regulatory, investment funds, asset management and listings on The International Stock Exchange (TISE).

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05 January 2026
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“People do not leave companies, they leave cultures.” And who shapes that culture? Human Resources. When people hear Human Resources, they often think of hiring…
Dispute Resolution

The Dispute Resolution department at Ferbrache & Farrell LLP has vast experience of local and international litigation and dispute resolution generally, gained from acting in complex local and international high-value disputes, both in Guernsey and throughout the world.

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17 March 2026
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A recent decision of the Upper Tribunal (Immigration and Asylum Chamber) has raised important concerns about the use of artificial intelligence (AI) in legal practice…
Property

The Guernsey property department is dedicated to providing tailored solutions that meet and exceed clients’ expectations. In addition, the property department provides support to colleagues in the corporate and dispute resolution departments on real estate-related technical points of law.

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13 May 2026
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The Guernsey Quarterly Residential Property Prices Bulletin for Quarter 1, 2026 (published 12 May 2026) offers a clear snapshot of how the Island’s housing market…
UK Real Estate

We are delighted to help in relation to providing legal advice for real estate in England and Wales. We listen. We learn what your needs are. We proactively respond. Whether it’s personal or commercial property, we always provide sound and pragmatic advice, adding value to the transaction.

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20 May 2026
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The Land Registry has today released the UK House Price Index for March 2026, showing that average UK house prices fell by 0.4% between February…
Private Client

Our services for private client matters include the drafting of realty and personalty wills, acting as professional executors, and assisting foreign lawyers who have requirements in this jurisdiction.

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05 January 2026
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“People do not leave companies, they leave cultures.” And who shapes that culture? Human Resources. When people hear Human Resources, they often think of hiring…

Upper Tribunal highlights confidentiality risks of using AI in immigration cases

A recent decision of the Upper Tribunal (Immigration and Asylum Chamber) has raised important concerns about the use of artificial intelligence (AI) in legal practice — particularly the risks to client confidentiality.

In UK v Secretary of State for the Home Department [2026] UKUT 81 (IAC), the Tribunal addressed situations where AI tools had been used in preparing legal documents. While part of the judgment dealt with inaccurate legal citations, one of the most significant warnings concerned the potential danger of uploading sensitive client information into publicly accessible AI platforms.

For clients, this issue is critical, and whilst the judgment relates to immigration, the principles discussed apply across the board.

Why confidentiality matters

Confidentiality is a cornerstone of the lawyer/client relationship. Clients must be able to share sensitive details, including personal history, immigration status, medical evidence, or protection claims, knowing that their information will remain private.

If confidential documents are entered into certain public AI systems, there is a risk that:

  • The information may be stored on external servers
  • It could be accessed or used in ways the firm cannot control
  • Legal privilege (the protection that keeps lawyer/client communications private) could potentially be undermined

The Tribunal made clear that these risks are not theoretical. Lawyers must understand how any technology they use handles data.

The Tribunal’s warning

The Upper Tribunal (Immigration and Asylum Chamber) made it clear that the responsibility for protecting client confidentiality rests squarely and continuously with the legal representative. That duty does not diminish simply because new technology is involved. Whether information is shared in a meeting room, sent by email, or processed through digital tools, lawyers remain under a strict professional obligation to safeguard client data at every stage of a case.

The Tribunal specifically warned that uploading client documents or sensitive personal information into publicly accessible or “open” AI platforms may amount to a breach of professional conduct rules. Many widely available AI systems operate on external servers and may retain, process, or use submitted data in ways that are not fully transparent to the user. If confidential information is entered into such systems without appropriate safeguards, there is a real risk that privacy obligations could be compromised. In legal practice this risk is especially serious.

The judgment further emphasised that consequences for mishandling confidential data may extend beyond judicial criticism. If a court concludes that client confidentiality has been put at risk, the matter could be referred to professional regulators, such as the Solicitors Regulation Authority, or to data protection authorities. Regulatory investigations can result in disciplinary action, financial penalties, or reputational damage to a firm.

In this way, the Tribunal’s decision sends a broader message to the profession: misuse of AI is not merely a technical error or a lapse in judgment. Where confidentiality is concerned, it may engage core professional duties and trigger formal regulatory scrutiny.

Conclusion

We treat confidentiality as fundamental. Any technology used within our practice is carefully assessed to ensure compliance with professional obligations and data protection law.

If you have concerns about data protection or would like to understand how your information is safeguarded in your legal matter, please contact our team. Your privacy and trust remain our highest priority.

The States of Guernsey’s Phase 2 proposals to expand the Prevention of Discrimination Ordinance will introduce age as a protected characteristic, with implementation expected no earlier than Q3 2027. 

Employers should begin preparing now by reviewing recruitment processes, pay structures, benefits, redundancy criteria and workplace policies to ensure they are free from unjustified age bias. This includes examining job adverts and selection procedures for age‑related language and updating equal opportunities and anti‑harassment policies to reflect age as a forthcoming protected ground.

Although certain exceptions will remain, such as legitimate and proportionate business justifications or permitted length‑of‑service and pension‑related practices, employers should begin documenting where these apply to ensure compliance.

Justifying mandatory retirement ages

One of the most significant challenges will be the removal of mandatory retirement ages. Employers will no longer be able to impose a fixed retirement age unless they can objectively justify it. This requires demonstrating a legitimate aim, such as health and safety or succession planning, and ensuring that any approach taken is proportionate. Conversations about retirement will become more sensitive and legally risky, and employment contracts and staff handbooks will require substantial review and amendment.

Recruitment and promotion practices

Recruitment and promotion processes will need careful scrutiny. Subconscious bias may lead to favouring younger candidates perceived as more dynamic or older candidates perceived as more experienced, creating risks of indirect discrimination. Job adverts must avoid age‑coded language such as “young team,” “energetic,” or “digital native,” and promotion decisions must not be influenced by assumptions about an employee’s retirement plans or capability based on age.

Training managers

Training will be essential to ensure managers understand their responsibilities under the Ordinance. Line managers may unintentionally make age‑related comments or decisions that could be discriminatory, and performance management discussions must be framed objectively to avoid the perception of age bias. Regular, mandatory training will require both time and financial investment but will be crucial for compliance.

Workforce planning and legal compliance

Workforce planning will also become more complex. Employers can no longer assume when older employees will retire, which affects succession planning. Long‑term staffing models may need to be recalibrated, particularly in physically demanding roles or where age profiles influence workforce risk. Redundancy and organisational change processes must be designed carefully to avoid disadvantageing particular age groups.

Conclusion

The introduction of age as a protected characteristic will strengthen protections against discrimination, harassment and victimisation linked to age or age group. These changes aim to promote fairness, dignity and respect across all stages of employment, while recognising that limited age‑based practices may still be permissible where they serve a legitimate and proportionate aim. Employers and employees alike should familiarise themselves with the upcoming changes to support an inclusive and compliant workplace culture. 

Our Dispute Resolution team acts for both employers and employees in all employment matters, including contractual claims, dismissals and discrimination.  

After a recent successful application for summary judgment, we thought it worthwhile to reflect on the practical importance of this procedural tool within Guernsey litigation. 

Introduction to summary judgment

Summary judgment is an important procedural tool within civil litigation, enabling the court to dispose of claims or defences that have no real prospect of success without requiring a full trial. It offers an important mechanism for ensuring that weak or groundless claims do not proceed to costly evidential stages. 

This article sets out the legal basis of summary judgment in Guernsey, when it is appropriate, the steps involved, evidential expectations, a brief note on defending such applications, appeal rights, and a comparison with strike-out applications.

The legal basis for summary judgment in Guernsey

The Civil Litigation procedure in Guernsey is set out in the Royal Court Civil Rules 2007 (2007 Rules). 

The 2007 Rules set out the foundation for all civil procedural applications, including those for summary judgment. Although these draw on the rules of procedure applicable in England and Wales, there are important differences specific to Guernsey.

When summary judgment is appropriate

Summary judgment is suitable where it is clear that a party has:

  • No real prospect of succeeding on its claim or defence
  • There is no compelling reason for the matter to proceed to trial.

Although the 2007 Rules do not mirror the English and Welsh Civil Procedure Rules identically, underlying principals often remain consistent. In the case of summary judgment, the emphasis of the quick removal of claims or defences lacking a realistic basis is mirrored. 

Typical situations in which summary judgment may be considered include:

  • Where factual issues are undisputed, and the case turns largely on a point of law
  • Where documentary evidence overwhelmingly supports one party, rendering a trial unnecessary
  • Where a defendant’s pleaded case is inherently unsustainable, even if technically compliant with pleading standards.

Conversely, summary judgment is not appropriate where:

  • Key facts remain genuinely disputed
  • Evidence requires crossexamination or
  • The legal position is unclear or developing.

Procedural steps in a summary judgment application

A summary judgment application is generally brought after pleadings have closed, meaning the claim (Cause) and defences have been filed.

When bringing the application, the applicant must give the opposing party a minimum of four clear days’ notice before the application is scheduled to be heard. This ensures the respondent has a fair opportunity to consider the issues raised and prepare any answering evidence.

The application must be supported by a sworn affidavit, which should clearly set out:

  • The point of law or legal basis relied upon
  • The material facts supporting the application
  • The documents or evidence demonstrating why the opposing party has no real prospect of succeeding.

The Royal Court retains broad discretion to determine the application based on the written evidence and concise oral submissions, reflecting Guernsey’s adversarial system in which both written and oral advocacy play a central role.

Defending a summary judgment application

A respondent must show that there is a triable issue or a realistic prospect of success.

This may involve demonstrating factual disputes, incomplete disclosure, or raising legal questions unsuitable for disposal on paper. 

Appeal rights

Decisions on summary judgment may be appealed to the Guernsey Court of Appeal in the usual way. 

Comparison with strike out applications

Summary judgment and strike out applications are often assessed together and sometimes both applications may be made. They are similar in their nature but both serve different purposes.  

A strike out application challenges the pleading itself – for example, where a claim discloses no cause of action, is an abuse of process, or is fundamentally defective. It does not depend on evidence. 

Summary judgment focuses on the evidential strength of a case. It asks whether the claim or defence has any realistic prospect of success when assessed alongside the available evidence.

In practice a strike out may be the appropriate route where pleadings are deficient irrespective of evidence. However, summary judgment is appropriate where pleadings appear sufficient, but the evidence shows the case cannot succeed.

Conclusion

Summary judgment remains a powerful mechanism in Guernsey litigation, enabling the Royal Court to deal efficiently with cases that do not warrant the time and cost of a full trial. By understanding when it is appropriate, how applications are made, and how the court evaluates evidence, summary judgment can be used to streamline litigation and focus on issues that genuinely require judicial determination.

Recent headlines suggest a Tribunal has ruled that it is “not harassment” to ask a woman if she is menopausal. That framing is catchy, but legally misleading.

Employment Tribunals do not decide harassment claims by slogan. They decide them by applying statute to facts.

The legal test

Under section 26 of the Equality Act 2010 (the Equality Act), harassment occurs where a person engages in unwanted conduct related to a protected characteristic (such as sex and/or age) and the conduct has the purpose or effect of violating dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment.

In menopause-related cases, claims are typically framed as harassment related to sex, age, or both.

Two key points often get lost:

  1. The conduct must be unwanted.
  2. It must either have the purpose or the effect of violating dignity or creating the prohibited environment — and that effect must be reasonable in all the circumstances.

The final phrase “reasonable in all the circumstances” is where context becomes everything.

In Ms L Waller v Swann Engineering Group Ltd (ET/6017991/2024), the Tribunal accepted that a manager made menopause-related comments, including references to “going through the change.”

However, taking the full factual matrix into account, the Tribunal concluded that it was not reasonable to treat the comments as meeting the statutory threshold for harassment under section 26.

Importantly, the Tribunal did not say that comments regarding menopause are acceptable. It did not create a blanket rule, but instead assessed the context, tone, relationship, and overall environment.

Notably, the claimant succeeded on other causes of action, and not exclusively under the harassment provisions.

In contrast, there is the judgment of Ms L Best v Embark on Raw Ltd (ET/3202006/2020) where the Tribunal upheld harassment related to sex and age. Menopause was raised in a way the Tribunal described as tactless and intrusive, and crucially the conduct continued after it was clear it was unwelcome.

The Tribunal found that the behaviour had the effect of violating dignity and creating a humiliating environment.

It’s also worth noting that menopause comments did not occur in isolation. The Tribunal examined a broader pattern of behaviour.

Why menopause comments toe the line

The dividing line is intensely fact-sensitive. Tribunals will consider:

  • One-off vs repeated conduct
  • Supportive enquiry vs intrusive or derogatory remark
  • Genuinely welcomed conversation vs persistence after boundaries are clear
  • Private discussion vs public embarrassment
  • Power dynamics between manager and employee

A single, sensitively handled wellbeing conversation may be lawful. Repeated, flippant or boundary-crossing comments, particularly from someone in authority, may well be harassment.

The same words can cross the legal threshold in one setting and fall short in another, which reflects that workplace interactions are human and highly contextual.

Application in Guernsey

Harassment is prohibited under the Prevention of Discrimination (Guernsey) Ordinance, 2022, which uses a definition similar to section 26 of the Equality Act 2010. In simple terms, harassment occurs where unwanted conduct linked to a protected ground (such as sex) affects someone’s dignity at work or creates an intimidating, hostile, degrading, humiliating or offensive environment.

One important difference is that age is not yet a protected ground in Guernsey (though this is expected to change in 2027). For now, menopause-related claims are most likely to be brought as sex-based harassment or discrimination claims. That does not make them weaker, but it does shape how they are argued.

Conclusion

Ultimately, the issue is not whether the word “menopause” was used. It is whether, in all the circumstances, the conduct was unwanted and reasonably had the effect of undermining dignity at work. Employers who prioritise respectful, informed conversations are far less likely to find themselves testing that boundary before a Tribunal.

In divorce proceedings, assets are generally split into two categories: matrimonial assets, namely assets which were acquired by the parties throughout the course of the marriage; and non-matrimonial assets, which are assets which the parties obtained outside of the marriage. For example, matrimonial assets will normally comprise of the matrimonial home, earnings made during the marriage (note: if only one party worked, it will often be presumed that the other party contributed equally by maintaining the household and raising children etc.) and any investments or assets purchased during the course of the marriage. Conversely, non-matrimonial assets will generally consist of property or other investments obtained prior to the marriage, anything obtained by the parties post-separation, and any inheritance or other family-sourced wealth.

For matrimonial assets, a needs-based approach will be taken in the first instance, ensuring that at least the custodial parent (in matters involving children) or most vulnerable party has sufficient means to live and (where applicable) take care of the children of the marriage. In high-net-worth divorces, however, once the parties’ basic needs have been met, remaining assets are subject to the “sharing principle”, whereby each party is generally entitled to 50% of the remaining matrimonial assets, unless there is good reason to divide the assets in a different manner. 

As we know, although this explanation appears simple enough, in reality, there is often some blurring of the lines between what could be treated as a matrimonial asset and what is to be set aside from the assets which are to be shared between the parties as part of the divorce proceedings. A recent decision of the Supreme Court has developed this point further.

Standish v Standish

In Standish v Standish, the divorce between a high-net-worth couple gave rise to a dispute over approximately £80m which had been transferred to the wife by the husband around 3 years prior to the breakdown of their marriage. Originally, the intention had been to take advantage of Mrs Standish’s non-domiciled status in order to establish a tax-efficient structure for the benefit of the couple’s two children, however this failed to materialise. During divorce proceedings, Mrs Standish argued that these funds had been treated as matrimonial property and as such, should be subject to the sharing principle. The matter went back and forth on appeal by both parties until it was heard by the Supreme Court, which ruled that the assets were not matrimonial property, and as such, only 25% should be subject to the sharing principle, meaning that approximately 87% of the assets were retained by Mr Standish. 

The position going forward

In the wake of Standish v Standish, two principles have become clear:

  1. Property which is not considered to be matrimonial is not subject to the sharing principle; and
  2. Property which is treated as a matrimonial asset for the duration of the marriage can become “matrimonialised”.

The first of these points is, of course, to be approached with some caution in the majority of cases, as no court is likely to leave a vulnerable party with nothing simply because they came into the marriage with very little, especially where children are involved. For high-net-worth individuals, however, it is important to bear in mind that once everyone is taken care of and the matrimonial assets split, both parties will generally walk away with whatever else they brought into the marriage. 

The second of these points, however, is important to bear in mind. While one party might enter a marriage with significant assets, if these assets end up being used by or for the benefit of both parties, they could end up being incorporated with the rest of the matrimonial assets. For example, a rental property brought into the marriage by a husband but used to fund joint holidays would no longer be just for his benefit, and it may be considered unfair to thrust the wife into a standard of living below that which she had become accustomed to, simply because she didn’t purchase the property initially. 

Conclusion

Although not binding in Guernsey, the ruling in Standish v Standish will be at least persuasive in the Guernsey Courts. As such, high-net-worth individuals contemplating a divorce ought to consider not only the assets they brought into the marriage, but also how these assets were used by both parties over the course of the marriage. 

Of course, while it is helpful to have an idea of where matrimonial assets came from, this is a matter on which legal advice is crucial. If you are in the early stages of going through a divorce and would like to obtain initial advice on asset division, as well as continued support with the legal process, please contact Robin Gist, Charlotte Tomlinson, or Aimee Brown

The Royal Court of Guernsey’s recent decision to uphold an Overseas Forfeiture Order sought by German authorities in Bielefeld – leading to the seizure of more than £8.5 million in funds derived from crypto fraud and linked to Ruja Ignatova, the “Cryptoqueen” – marks an important development in the Channel Islands’ legal landscape.

The ruling is notable not only for its scale but for the precedent it sets. By applying proceeds of crime legislation to assets originating from the notorious OneCoin Ponzi scheme, the Court has established a clear framework for pursuing illicit funds in fraud and asset recovery proceedings. It underscores Guernsey’s readiness to adapt established legal principles to the realities of emerging technologies and increasingly sophisticated financial crime.

Why this case matters

  • First of its kind: This is the first significant asset seizure case in the Channel Islands related to the proceeds of a major crypto-fraud operation.
  • Legal clarity: The Court confirmed that existing enforcement frameworks and proceeds of crime legislation extend to funds derived from digital assets.
  • International cooperation: The case highlights Guernsey’s ability to work alongside overseas authorities, reinforcing its role in global asset recovery.

Challenges in crypto litigation

Digital assets present unique hurdles for litigators and courts alike:

  • Tracing and identification: While blockchain provides a transparent record of transactions, the anonymity of wallets makes it difficult to link assets to specific individuals, creating significant challenges for enforcement. In practice, as seen in this case, funds may be converted into fiat before reaching offshore jurisdictions, adding another layer of complexity to tracing.
  • Cross-border enforcement: Crypto assets often move rapidly across jurisdictions, requiring coordinated strategies and strong international cooperation.
  • Valuation volatility: The fluctuating value of crypto can affect recovery outcomes and damages calculations. While the Guernsey seizure involved fiat funds, the underlying fraud illustrates how volatility complicates enforcement in cases where assets remain in digital form.

Implications for clients

For fiduciaries, trustees, and financial institutions, the case underscores the importance of:

  • Proactive compliance: Ensuring systems are robust enough to detect and respond to suspicious activity.
  • Risk management: Considering crypto holdings within broader asset protection strategies.
  • Specialist support: Engaging experienced litigation teams who understand both traditional and emerging asset classes.

Looking ahead

Although the assets frozen in Guernsey were fiat funds originating from crypto fraud, the case establishes a basis for consistency and confidence in how courts approach disputes involving digital assets and their proceeds. It signals that Guernsey is prepared to extend existing enforcement frameworks to cover the outcomes of digital asset crime.

For clients, this precedent provides reassurance that Guernsey remains a jurisdiction of choice for complex asset recovery – one that combines established legal principles with the flexibility to address new challenges.

The UK Court of Appeal has dismissed an appeal by EuroChem North West 2 (NW2) (cited as [2026] EWCA Civ 5), confirming the validity of an anti-suit injunction issued by an arbitral tribunal to restrain proceedings brought in Russia involving sanctioned Russian parties. The decision, reported, reinforces the English courts’ strong pro-arbitration stance and their willingness to support arbitral tribunals in protecting the integrity of London-seated arbitrations.

Background

The dispute arises out of construction contracts between NW2 and the Italian engineering company Tecnimont. In 2022, NW2’s ultimate owner, Andrey Melnichenko, was added to the European Union’s sanctions list following Russia’s invasion of Ukraine. In response, Tecnimont suspended performance of the construction contracts, taking the position that EU sanctions prevented it from continuing to perform. NW2 subsequently terminated the contracts.

Tecnimont commenced arbitration proceedings in London pursuant to the arbitration agreements in the contracts. NW2 initially participated in those arbitral proceedings. However, it later began court proceedings in Russia, relying on Article 248 of the Russian Commercial (Arbitrazh) Procedure Code.

Article 248 grants Russian commercial courts exclusive jurisdiction over disputes involving Russian parties who are subject to foreign sanctions. Since its introduction, Article 248 has been used repeatedly by Russian parties to override arbitration agreements and foreign jurisdiction clauses, particularly where disputes involve EU, UK, or US sanctions.

The anti-suit injunction

In response to the Russian proceedings, the arbitral tribunal issued an anti-suit injunction ordering NW2 to discontinue the Russian claim. The tribunal concluded that the Russian proceedings were brought in breach of the arbitration agreements and threatened the tribunal’s jurisdiction and the arbitral process.

NW2 challenged the ASI in the English courts. At first instance, the High Court upheld the tribunal’s order in [2025] EWHC 3151 (Comm). The court found that the Russian proceedings were “at least in large part, aimed at frustrating EU and UK sanctions against Russia” and emphasised that it was the policy of the English courts to ensure the effectiveness of those sanctions regimes.

The Court of Appeal’s decision

The Court of Appeal has now upheld the High Court’s judgment, dismissing NW2’s appeal in full. However, the appellate court took a more restrained approach than the High Court. Rather than focusing on sanctions policy or the geopolitical context, it grounded its reasoning squarely in the framework of the Arbitration Act 1996.

The Court of Appeal emphasised that:

  • The arbitration agreements were valid and provided for London-seated arbitration.
  • The tribunal was entitled, as a matter of English arbitration law, to protect its own jurisdiction and the integrity of the arbitral process.
  • An anti-suit injunction aimed at preventing parallel foreign proceedings brought in breach of an arbitration agreement falls squarely within that protective function.

The court rejected the argument that comity or respect for the Russian courts should prevent enforcement of the ASI. Where parties have agreed to arbitrate and one party seeks to undermine that agreement by invoking a foreign statute such as Article 248, English courts are entitled and, in appropriate cases, obliged to intervene.

Notably, the Court of Appeal did not endorse or reject the High Court’s broader observations about sanctions evasion. Instead, it made clear that the outcome could be justified entirely by reference to orthodox principles of English arbitration law.

Significance of the ruling

The decision provides further reassurance to parties choosing London as a seat of arbitration, particularly in disputes involving Russian counterparties and sanctions-related issues. It confirms that English courts will robustly support arbitral tribunals in issuing and enforcing anti-suit injunctions, even where those injunctions are directed at proceedings in jurisdictions that assert mandatory or exclusive jurisdiction under domestic law.

More broadly, the ruling underscores the limits of Article 248 in the face of arbitration agreements governed by English law and supervised by the English courts. While Russian courts may assert exclusive jurisdiction under Article 248, parties who have agreed to arbitrate in London remain exposed to effective remedies in England if they seek to bypass that agreement.

Guernsey has recently introduced important reforms to its Open Market Housing Register through the Open Market Housing Register (Guernsey) (Amendment) Law, 2025. These amendments create more flexibility and clarity around how properties can be inscribed (added) to, and moved around within, the open-market register. 

Here’s a breakdown of what the changes mean in practice:

  1. Inscription in Principle (Section 3A) — Getting in Early

One of the most significant additions is the concept of “Inscription in Principle” (IIP) under Section 3A of the law. This allows a property to be conditionally inscribed before construction is complete. Previously, full inscription could only happen after a building was finished and had a completion certificate. 

There are two categories for IIP:

  1. Prospective new-build properties (properties that have planning permission but haven’t yet been built) 
  2. Exceptional-circumstance properties (buildings which wouldn’t normally qualify, but which meet certain strategic criteria)
    • A property may be considered an exceptional case if inscribing it serves a broader public or economic purpose (for example, essential housing supply, community infrastructure, economic uplift, environmental sustainability, social cohesion, or critical infrastructure). 
    • Historic or culturally significant buildings also may be eligible if the inscription helps fund vital repair or restoration. 

The IIP is valid for six years. For a new-build, to convert that IIP into a full inscription, you need to finish the construction, pay any required fees (there will be a levy), and satisfy any other conditions that were set when the IIP was granted. 

Importantly, if the property changes hands while an IIP is in place, the IIP remains with the property and is not automatically lost just because ownership changes. 

However, there will be a cap on how many IIPs the States grant each year. Under the policy, just three new inscriptions per year are proposed. 

  1. Transferring Existing Inscription to New Development (Section 3B)

Section 3B of the amended law allows owners who already have an open-market inscription (Part A) to transfer that inscription to a new-build development. In practical terms:

  • You must own one or more inscribed properties AND hold land where planning permission has been granted for at least two new units. (The law requires “two or more” new build properties.) 
  • When the development is completed, the original property inscription is deleted, and the inscription is transferred to one (or more) of the new units. 
  • There is a limit: no more than one-third of the units in the development may receive inscriptions, and the maximum number of inscribed units in any development is eight. 
  • Properties on Fort George are excluded from these transfers. 

So, if you’re a landowner or developer, this change provides a way to “redeploy” existing inscriptions into new-build stock, freeing up flexibility in how the open-market register evolves.

  1. Downsizing: Transferring to Smaller Local-Market Property (Section 3C)

Section 3C introduces a downsizing mechanism, enabling long-term open-market residents to transfer their inscription from a larger open-market home to a smaller local-market property. The idea is to encourage more efficient use of housing and free up larger units. Key points:

  • To qualify, the new (local-market) property must have an internal floor area at least 25% smaller than the current inscribed open-market property. This ensures a meaningful downsizing. 
  • Both properties must be owned by the applicant at the time of application. 
  • The policy also requires that the applicant is a long-standing open-market resident (for example, at least 20 years’ residency).
  • Similar to Section 3B, Fort George properties are excluded. 

There is also a proposed amendment (Amendment 1) which would allow a person to delete the inscription on their current Part A property and inscribe a new (downsized) Part A property even if they do not own both properties at the same time. 

  1. Other New Provisions & “Anomaly” Regularisation

In addition to the above, the amendment includes a provision to regularise “anomaly” properties. These are Open Market homes where certain parts (e.g., a room or wing) are not currently inscribed, perhaps due to historic quirks in how the registration was done. 

Regularising such homes means the full dwelling can be inscribed (provided doing so does not create a separate legal unit), which simplifies legal and occupancy matters for owners.

  1. Fees, Levy, and Revenue
  • There will be application fees for inscription and transfer applications. 
  • New inscriptions (especially under IIP) will attract a levy, designed to reflect the increase in property value that comes from an open-market inscription. 
  • The States expect these changes to generate at least £1.5 million in additional revenue per year
  1. Why These Changes Are Being Made

According to the States of Guernsey and the Committee for Environment & Infrastructure:

  • There is a need to increase the supply of high-quality open-market housing in a controlled, sustainable way. 
  • The changes were developed with broad stakeholder input: property professionals, developers, estate agents, the Open Market Forum, and relevant States’ Committees. 
  • By enabling transfers and downsizing, the policy aims to free up the open-market register and also support local-market development, making more efficient use of limited housing stock. 
  • The changes offer greater transparency and predictability for inscription applications. 
  • Revenue raised will help support broader States finances, and the policy ensures that open market growth is not unchecked. 
  1. Practical Implications for Clients

From a legal and practical standpoint, here are some take-homes for different clients:

  • Existing open-market homeowners: If you own an inscribed property, you may now be able to transfer that inscription to a new-build development (if you have land with planning permission) or downsize into a smaller local-market home. This could unlock flexibility, especially for long-term residents wanting to right-size.
  • Developers: These changes may make development more attractive. By acquiring land and securing inscriptions via transfer, you can build new open-market units more easily and align projects with policy.
  • Prospective buyers / investors: New build homes may become available for inscription earlier (via IIP), potentially making them more attractive. But note the cap: only about three new inscription in-principles per year are expected, so it’s still quite limited. 
  • Strategically valuable properties: Owners of properties that may qualify under “exceptional circumstances” (e.g., historic, economic, environmental or social benefit) have a clearer path to inscription than before, but each case will be assessed individually.
  • Financial planning: Because of the levy on new inscriptions and the transfer mechanics, clients should plan for associated costs and timing carefully. Legal advisers should factor in fees, payment timing, and conditions for conversion from IIP to full inscription.
  1. Risks and Considerations
  • While IIP is a powerful tool, there is no guarantee of full inscription if conditions are not met (e.g., construction delays, costs, failure to satisfy policy conditions).
  • The cap on new inscriptions is tight, which means not every prospective new-build will necessarily succeed in getting an IIP.
  • The policy excludes certain properties (e.g., Fort George), so not all open-market owners can use these transfer routes. 
  • There may be political or administrative risks: although the law has been amended, applications will be subject to the States’ operational policy and possibly evolving guidance.
  • The levy might make new inscriptions significantly more expensive, and clients should weigh value uplift vs cost.

Conclusion

The 2025 amendments to Guernsey’s Open Market Housing Register mark a major policy shift, offering more flexibility and strategic opportunity for inscription, while balancing control and revenue generation. Whether you’re an existing open-market property owner, developer, or a buyer looking at new properties, these changes create new pathways, but they also carry complexity.

As always, when considering applying under the new regime (whether for an IIP, a transfer, or downsizing), it’s wise to seek legal advice early. If you would like assistance with assessing eligibility, preparing your application, and navigating the fee and levy implications, please contact Charlotte Tomlinson, Robin Gist, Alastair Hargreaves, Rebekah Johnston or Aimee Brown.

The States of Guernsey’s Policy and Resources Committee (the Committee) recently invited feedback on proposed reforms to the personal injury discount rate (PIDR). The consultation, which closed on 31 August 2025, follows detailed recommendations from an expert panel appointed by the States of Guernsey.

These proposals mark an important step toward modernising Guernsey’s personal injury compensation system and ensuring that injured individuals receive fair and sustainable settlements.

What is the PIDR?

When someone receives a lump sum in compensation for a life-changing injury, that money is expected to last for the rest of their life. The PIDR is used to adjust the amount of compensation awarded, taking into account how much the plaintiff might earn by investing their damages over time.

The PIDR aims to make sure the award reflects real-world economic conditions, including inflation, tax, and investment costs, so that plaintiffs are neither over nor under-compensated.

To avoid forcing injured people to make risky investments, Guernsey’s system assumes that plaintiffs invest their compensation in index-linked government securities (GILTS). This provides a low-risk benchmark for calculating returns.

Unlike the UK, Guernsey does not currently have a fixed statutory discount rate. In the landmark case Helmot v Simon, the Privy Council set rates of -1.5% for earnings-related losses and 0.5% for other losses, based on the economic context at the time. Since then, courts in Guernsey have continued to set rates on a case-by-case basis using expert evidence.

What is being proposed?

The Committee is considering two new approaches to setting the PIDR:

  1. A three-rate system, with separate rates for:
    • Price inflation-related losses: +1.0%
    • Earnings inflation-related losses: 0.5%
    • Care cost inflation-related losses: -0.75%

This is the approach preferred by the expert panel.

    2. A dual-rate system, using a single rate of -0.75% for both earnings and care-related losses.

The expert panel’s report, published in August 2025, recommended adopting the three-rate model. The panel explained that this approach better reflects the different types of losses faced by injured people, for example, the costs of care versus general expenses. While slightly more complex to calculate, this method is already used in other jurisdictions and is seen as a fairer, more accurate way to assess compensation.

To ensure the PIDR stays up to date, the panel also suggested reviewing the rates every three years, or sooner if market conditions shift significantly, such as when yields on UK index-linked gilts change by more than 1.5%.

Why do care costs and wage growth matter?

In serious injury cases, a large part of the compensation covers future care and support needs. The expert panel highlighted that these costs are rising faster than general inflation and are likely to continue doing so.

Two key factors are driving this trend:

  • A need for care wages to “catch up” after years of slower growth; and
  • Increased demand for care services due to an ageing population.

In Guernsey, these pressures are particularly acute. The island faces a smaller labour pool due to immigration controls and competition for skilled carers. In addition, efforts to align Guernsey’s care standards and training with UK levels are expected to increase costs further.

Because detailed local data on wage growth is limited, the panel relied on forecasts from the UK Government Actuary’s Department and the Office for Budget Responsibility (OBR). It recommended using the upper range of OBR’s earnings growth projections to reflect Guernsey’s specific challenges in care recruitment and retention.

Why does the PIDR matter for plaintiffs?

The PIDR plays a crucial role in ensuring that compensation for seriously injured people is fair and sufficient to meet their lifelong needs.

If the rate is set too high, plaintiffs risk being under-compensated, meaning their damages might run out before their lifetime needs are met. If the rate is too low, insurers and defendants may face over-compensation claims, increasing overall costs.

The proposed three-rate approach is designed to strike a fair balance: matching compensation more closely to the true costs plaintiffs will face over time. This helps uphold the principle of 100% compensation, meaning that victims receive enough to cover their needs for life, without having to rely on risky investments or state support later on in life.

What happens next?

The Committee will now consider the feedback received from the consultation before deciding which approach to adopt. Once finalised, the new PIDR will be set by law, providing greater clarity and consistency for plaintiffs, insurers, and the courts.

The expert panel also recommended that Guernsey periodically review and update the PIDR, so that it continues to reflect changing economic conditions.

At this stage, the Committee is not proposing legislation for periodical payment orders (PPOs), which are regular, inflation-linked payments made to plaintiffs instead of a lump sum. However, parties in serious injury cases can still agree to PPOs privately, and the proposed three-rate system is designed to work effectively alongside such arrangements.

Conclusion

The proposed reform of Guernsey’s PIDR represents a thoughtful and forward-looking approach to ensuring fair compensation for those who have suffered life-changing injuries.

By introducing a more precise system that reflects real economic pressures, particularly the rising cost of care, Guernsey aims to strengthen its commitment to the principle of full and fair compensation.

If adopted, the new PIDR framework will help ensure that injured individuals can meet their long-term needs with security and dignity.

If you have any questions about the PIDR or personal injury claims more generally, please do not hesitate to contact Robin Gist, Charlotte Tomlinson, or Rebekah Johnston, or your regular Ferbrache & Farrell contact.

Guernsey has historically maintained a relatively light-touch employment law regime compared with some larger jurisdictions, but the legal environment is changing. Recent legislative reforms, shifting working practices, and increasing scrutiny of discrimination, flexibility and settlement terms mean that employment-related disputes are now more likely and more complex. This indicates that employers must adapt, and quickly.

The Legal Framework

At the core of Guernsey’s employment law regime is the Employment Protection (Guernsey) Law, 1998, which provides protections such as unfair dismissal rights. 

Complementing that are:

  • Minimum Wage (Guernsey) Law, 2009
  • The Sex Discrimination (Employment) (Guernsey) Ordinance, 2005
  • Prevention of Discrimination (Guernsey) Ordinance, 2022 
  • Other key laws such as the Conditions of Employment (Guernsey) Law, 1985 and various statutory rights for leave, etc.

The Employment & Discrimination Tribunal handles statutory complaints (e.g. complaints of unfair dismissal and/or discrimination) and the Employment & Equal Opportunities Service (EEOS) offers conciliation services. Jurisdictional issues (such as whether someone “ordinarily works in Guernsey”) require careful consideration. 

It is essential that employers ensure they have up-to-date employment contracts, grievance and disciplinary procedures, and that they recognise the difference between internal contractual (court) claims and statutory tribunal claims.

Key Risk Areas in 2025 

  1. Non-Disclosure / Settlement Agreements – A Changing Landscape

Recent developments in England & Wales have introduced significant reform of NDAs (and settlement agreements). While the reforms currently apply in England & Wales, they signal a broader international trend which may influence settlement practice in Guernsey (especially where entities or individuals operate across jurisdictions).

  • From 1 October 2025 the Victims and Prisoners Act 2024 brings into force changes to NDAs such that confidentiality clauses are void to the extent they prevent “permitted disclosures” by victims of crime to law enforcement, regulators or legal advisers. 
  • Separately the UK government has announced its intention to table amendments to the Employment Rights Bill to ban NDAs being used to silence victims of harassment or discrimination. This means that confidentiality clauses in settlement agreements of that nature would be null and void. 

Implications for Guernsey employers and advisers:

  • Settlement agreements / compromise agreements involving Guernsey employment law should be reviewed to ensure confidentiality clauses do not over-reach, particularly if cross-border or UK elements are present.
  • Employers should draft exit/settlement agreements with clear carve-outs for disclosures to regulators, legal advisors, law enforcement, even if Guernsey law does not yet mirror the UK reforms exactly.
  • Employers should consider whether entirely silencing clauses are prudent given the global momentum (and reputational risk) toward transparency in misconduct/harassment situations.
  • Employers (or their legal advisors) should monitor whether Guernsey itself adopts similar reforms or guidance in respect of NDAs/settlement agreements, and adapt accordingly.
  1. Age Discrimination and the Next Phase of Guernsey’s Anti-Discrimination Law

While Guernsey prohibits discrimination on five grounds (race, disability, career status, sexual orientation and religion or belief), age is not yet a protected characteristic in Guernsey. However, it is expected to be introduced in 2027.

  • The Committee for Employment & Social Security (ESS) has proposed introducing age as a protected ground (in addition to phase two of the Ordinance) and published a policy letter in March 2025 setting out the proposals. 
  • Once age protection is introduced, differential treatment based on age will (subject to any permitted objective justification) be actionable in employment, provision of goods/services, accommodation, education and club membership. 

Implications for employers and advisers:

  • Employers should proactively review hiring, promotion, redundancy and pension policies, identify any age-based differential treatment (e.g. older/younger employees) and assess whether such differences could be justifiable.
  • Contract clauses or policies requiring mandatory retirement ages may become legally risky once age discrimination protection is introduced. 
  • Training for management on age-related bias, ageism in the workplace, and ensuring neutrality across age groups will be important.
  1. Other Key Risk Areas
  • Unfair/Constructive Dismissal: Employers must ensure fair process, meaningful written reasons, and valid grounds for dismissal (where applicable).
  • Remote/Hybrid Work & Jurisdiction: With more cross-border and hybrid working arrangements, questions about where an employee “ordinarily works” can affect jurisdiction and eligibility to bring a claim. Employers should define the place of work clearly in employment contracts and review the risk profile of remote workers, especially where regulatory or data protection issues may also arise.
  • ADR & Early Resolution: Internal grievance mechanisms, early mediation/conciliation, and proactive dispute-resolution policies can reduce costs and reputational damage.

Practical Checklist for Employers and Advisers

  • Review contracts & settlement templates – ensure confidentiality/settlement clauses are crafted with an eye to evolving international standards (e.g. UK NDA reform), and carve-outs for disclosures to regulators/law enforcement are explicit.
  • Update policies for impending age discrimination protection – review age-based benefits, retirement age provisions, career progression and redundancy criteria; ensure objective justification exists for any age-linked treatment.
  • Training & awareness – train HR/management on recognising discrimination (including age), harassment, grievance handling, remote/hybrid work issues.
  • Robust grievance/discipline procedures – internal mechanisms should be clear, fair, documented; escalate early to avoid tribunal claims.
  • Exit/settlement strategy – early consideration of settlement vs tribunal; ensure exit agreements are carefully drafted with global context in mind.
  • Remote/hybrid working clarity – define place of work, jurisdiction, working hours, applicable law; review whether “ordinarily works in Guernsey” remains satisfied; guard against mis-classification and subtraction of statutory eligibility.
  • Monitor legislative & case-law developments – track progress of Guernsey’s age discrimination introduction, UK reforms to NDAs, and emerging tribunal decisions in Guernsey/Channel Islands.

Looking Ahead

Employment and workplace disputes in Guernsey are poised to become more frequent and more nuanced. The confluence of expanded discrimination protections (age), shifting settlement/exit agreement practices (including NDA reform in the UK) and evolving working models (remote/hybrid) means that employers must act now, not just when a claim arises.

By adopting a strategic, proactive approach, Guernsey businesses can reduce the cost, disruption and reputational risk of employment disputes and position themselves as fair, modern employers in a changing landscape.