This assignment discusses the development of employment contracts, wrongful and unfair dismissals, and alternative dispute resolution methods in business law.
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Business law Assignment Running Head: BUSINESS LAW ASSIGNMENT0 4 / 1 8 / 2 0 1 9 Student’s Name
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Business Law Assignment1 Contents Question 1........................................................................................................................................2 Question 2........................................................................................................................................3 Question 3........................................................................................................................................5 References........................................................................................................................................7
Business Law Assignment2 Question 1 Every employee has the right to enter into a contract of employment which develops the basis of the relationship between employer and employee.These agreements can be developed in written as well in oral mode. Employment statues are there which has a significant influence on the development of employment contracts. It means many of the terms and conditions are there in the employment contracts, which are developed based on the requirements of employment legislation. Working time, hours, minimum wages, and many others are the areas where the parties of the contract have to look upon the statutory requirements and cannot insert anything by the mutual discussion, which is contradictory to the minimum statutory requirements. For instance, maximum working time is also mentioned under The Working Time (Amendment) Regulations 2003. As per these regulations, no employer can ask their workers to work for more than 48 hours a week without offering additional payment. When an employer develops the employment contract with the employee then the same has to take care of the requirements of maximum working hours and cannot mention the working hours as more than 8 hours per day. However if employer negotiate on this with theworker and offer them to work more than the above mentioned time, then employee can opt such options.In addition to this statutory minimum period of notice incases of redundancy and dismissal also prescribed under law which employer need to be taken care of. In general, the parties to the contract mutually decide the duties and rights of the employer and employee. These duties are known as expressed duties, which are mentioned in the employment contract clearly, but in addition to these duties, certain other duties are also there which are
Business Law Assignment3 known as implied duties. These duties exist on the part of the employer as well as the employee. Where an employer owes a duty to provide a safe work environment to the employee, to pay the agreed remuneration, to provide all the rights mentioned under contract, the employee also owes certain duties to the employer. These duties involve to be confidential in his/her working, to properly use the assets provided by the employer, to work in the best and fair manner and so on. These duties are common in law and set out under different cases. These duties are there in every employment relationship regardless of the personal characteristics and other factors of parties. Equality Act 2010 provides the grounds based on which discrimination cannot be made between theemployees.Thesegroundsremainthesameineveryemploymentrelationship.Ina conclusive way, this can be stated that the parties decide the terms and conditions of the employment contract but statues and legislation influence the same to a significant level. Question 2 Unfair and wrongful dismissals are two different kinds of dismissal. Starting from the wrongful dismissal this is to state that it is a situation where an employer dismisses an employee in breach of the employment contract. Terms of dismissal such as required notice period is mentioned under a contract and employer have to follow the same while dismissing an employee. In those cases where such terms are not mentioned,statutory minimum periods are applicable. Breach of such one or more term brings the issue of wrongful dismissal in an employment relationship. Wrongful dismissal is also known as wrongful discharge or wrongful termination. To be in successful in a claim of wrongful dismissal, an employee has to prove that the same has been dismissed in breach of the terms and conditions mentioned under an employment contract., Such
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Business Law Assignment4 as contractual disciplinary or grievance procedure. In most of the cases, the amount of damages under wrongful dismissal is the pay amount of employee that the same could get on the receipt of proper notice.Cases related to wrongful dismissal can be present before country court or high court or even before employment tribunal (where value of claim is limited to£ 25,000). Unfair dismissal is prohibited under the statue and the same is not a subject of contract contravention. Every employee of UK has a statutory right of not to be dismissed unfairly. Unfair dismissal is a situation where the employer dismisses the employee without having a fair reason.Further, a dismissal is also be treated as unfair if reason of dismissal is fair but employer do not follow the correct procedure of dismissal. Section 98 of the Employment Rights Act 1996 list out grounds of dismissal, which are termed as fair, reasons (Legislation.gov.uk, 2019). In addition to this, there is a set procedure to dismiss an employee even in those situationswhere an employer has reasonable and fair grounds of dismissal. In such a situation if the employer does not follow the procedure then also, the dismissal is counted as an unfair one. Employer is required to inform reason of dismissal to employee. Further it also becomes employer’s liability to allow the employee to be accompanied at dismissal hearing.Here to mention that self-employed people,member of armed force and independent contractor has no right to complain to tribunal regarding unfair dismissal. In case of wrongful dismissal, no length of service is required to bring a claim for wrongful dismissal whereas in most of the cases, two years of service is required to bring a claim for unfair dismissal. Moving the discussion towards remedies and rights of an employee under two of the dismissal, this is to state that an employee has the remedy of compensation, reinstatement, and re-
Business Law Assignment5 engagement under unfair dismissal (BPP Learning Media, 2013). The employee has the right to receive damages in case of wrongful dismissal. It was held in the case ofIrani v South West Hampshire Health Authority[1985] IRLR 203, HC, that court may award injunction in cases of wrongfuldismissalwheresuchdismissalattemptstocircumventastatutoryentitlement (Global.oup.com, 2019). Question 3 Apart from the traditional way of dispute resolution, certain other ways are also there. These ways are known as Alternative Dispute Resolution (ADR). These ways provide an alternative and confidential method of tackling legal disputes that avoid knocking the door of the courts. Different types of ADRs are there which are discussed in the following section- Mediation: - In this process, a trained mediator is involved which has independent opinion and role. This facilitates communication between the parties involved in the dispute (in case of employment disputes, the employer, and employee) in order to achieve a resolution or settlement between them. This is an interactive, dynamic, and structured process of dispute resolution. Conciliation: - This form of ADR is mostly preferable in cases of employment disputes instead of commercial disputes. Whenever an employee has to initiate an action before an employment tribunal, the same has to go through the process ofearlyconciliation (Johnson, 2019). A third party named conciliator is involved in the process who meets both the parties separately and then together too in order to settle the dispute (Dispute- resolution-hamburg.com, 2019).
Business Law Assignment6 Arbitration: - In comparison to Mediation and Conciliation, this process is more formal. An arbitrator is a person who is nominated by the third party and is eligible to handle the arbitration. Sometimes an employment contract includes an arbitration clause. This process is preferable in those cases where privacy is important or technical knowledge of an individual person is required to reach up to a settlement. In UK, Arbitartion Act is there to provide more detailed provisions on this topic. Theabove-mentionedthreeprocessesareimportanttypeADRs.Manyadvantagesand disadvantages of ADR are there. One of the most important advantages is the flexibility that these alternative dispute resolution methods provide to the parties (Albright, 2012).Parties of the contract have to choose the method of ADR, which is mentioned under the contract developed between them. Secondly, the costs of these methods are less than formal court procedures. The results are used to be confidential in these processes and the same are speedy too. It means these processes provide fast resolution to the parties. If to talk about the disadvantages involved in these alternatives, this is to state that the decision of arbitration is final and the party who is not satisfied with the decision as no right to make an appeal in against of such decision most of the times. Inthose cases where parties choose arbitration method of ADR then resolution does not remain guaranteed. Although ADR has certain disadvantages in addition to benefits, yet people often, choose these methods to resolve their mutual disputes, as they are less formal and do not bring negative impacts on the relationship of parties. Judgesare not involvedin the process. People find ADR easy process than the formal court procedures and therefore they adopt thee methods.
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Business Law Assignment8 References Albright, M. (2012)The Advantages And Disadvantages Of ADR.[online] Available from: https://albrightstoddard.com/advantages-disadvantages-adr/ [Accessed on19/04/2019] Arbitartion Act 1996 BPP Learning Media. (2013)ACCA Paper F4 - Corp and Business Law (Eng) Practice and revision kit. London:BPP Learning Media. Dispute-resolution-hamburg.com.(2019).Conciliation.[online]Availablefrom: http://www.dispute-resolution-hamburg.com/conciliation/what-is-conciliation/[Accessedon 19/04/2019] Employment Rights Act 1996 Equality Act 2010 Global.oup.com.(2019)Chapter08.[online]Availablefrom: https://global.oup.com/uk/orc/law/company/marson_concentrate2e/resources/outlines/ch08/ [Accessed on19/04/2019] Irani v South West Hampshire Health Authority[1985] IRLR 203, HC Johnson,M.(2019)AlternativeDisputeResolution.[online]Availablefrom: https://www.rocketlawyer.co.uk/article/alternative-dispute-resolution.rl[Accessedon 19/04/2019]
Business Law Assignment9 Legislation.gov.uk.(2019)Rightnottobeunfairlydismissed.[online]Availablefrom: https://www.legislation.gov.uk/ukpga/1996/18/part/X/chapter/I [Accessed on19/04/2019] Working Time (Amendment) Regulations 2003