Impact of Company, Employment & Contract Law on Business Organization

This document discusses the impact of company, employment, and contract law on business organizations. It explores the role of legislation, regulations, and standards in business operations. It also provides an overview of different business formation options.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different sources of law, role of government during the course of formation of law. Also,
analyse how statutory and common law can be applied within the justice court........................1
Critically evaluate the effectiveness of business legal system considering recent reforms and
changes........................................................................................................................................4
TASK 2............................................................................................................................................4
Impact of Company, employment & contract law on any of business organisation...................4
Difference between Legislation, regulations and standards for any of business........................5
TASK 3............................................................................................................................................6
TASK 4 ...........................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Law is a vast term where it becomes important to understand that required criteria must
be fulfilled so that desire result can be achieved. The circumstances where decisions are not
being declared by considering the legislation then problems are needed to be faced. The file
discusses about the topic business law where detail information are covered related to
commercialisation. In context of the file, legal advices will be given by ACN Ltd to one on the
foreign client named as Dominica who is willing to setup her business within the premisses of
UK.
Different topics which will be mainly focused in it will be related with legal system with
its effectiveness and what are the area which is needed to be focused the most. Secondly, impact
of different laws will be discussed which has a impact upon the business organisation. In third
task, it will be discussed that how any of the company can be formed and what are the necessary
things which is needed to be focused at the time of commencing any of the business. Finally, in
last task, one on the case is to be discussed which will explain that how any of the dispute can be
solved with the help of Alternative process.
TASK 1
Different sources of law, role of government during the course of formation of law. Also, analyse
how statutory and common law can be applied within the justice court.
Law is the important topics which tells that how any of the business department or a
nation can be run in a peaceful manner (Beatty, Samuelson and Abril, 2018). To run any of the
sector, it necessary to understand that changes must be made which will allow to understand that
how any of the work will be done. In simple words if there will be different area which can help
to commence any of the new law then in that respective situation it will allow to take corrective
measures. By looking at the requirement, some of the available sources which commences any of
the law within the premisses of UK are described below: Act of Parliament: In current scenario, one of the strongest source for UK to commence
any of the law is Act of Parliament. In this two different bodies of parliament i.e., House
of Lords and House of Commons has to show their participation at the time of
commencing the law. The laws and regulations which are being commenced by the
parliament is needed to be followed in any of the circumstances. In case of business
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organisation, there are number of laws and regulations which has been passed by
Parliament such as Companies Act 2006 and many more. This are crucial at the time
taking any of the business decisions. Common law: This are also one of the law making body in UK where power has been
delegated to judges. It simply gives the authority to take any of the decision on those
cases where legislation or Act of Parliament is silent (Cox, 2015). This source help to
overcome from those situation where cases can be run for longer period of time. But,
same decision which has been declared by the judges are applicable and needed to be
followed in any of the circumstances. European Union Law: It has also been the key body who commences the law for UK
because it simply form the laws for the European Nation since the end of World war. The
power to form any of the law in UK has been given to EU law since the treaty was
signed. This is one of the body who has commenced the maximum number of laws within
the premisses of UK. It case of business organisation, the laws which has been
commenced by EU law are helpful because there are very less probability that changes
will occur in law. European Convention on Human Right: The power has been given to ECHR to
commence laws within the UK which will be related with giving the rights to Human
living within the premisses of UK (Harner and Rhee, 2014). It will be the law which will
not allow to develop any of the discrimination within the business organisation so that
working environment can become suitable.
Role of Government
It is quite obvious that any of the law can be enforced in that respective situation where
ruling government will show their involvement. In UK, to form any of the laws and regulation
the power has been provided to House of Commons and House of Lords. In primary phase, it
will be required for House of Common to draft the bill as per the requirement of new law for
public at large. Below, process has been mentioned in which detail information is mentioned
related to the steps which are to be followed after drafting the bills. First Reading: Whenever bill is drafted within the House of Parliament, it becomes the
responsibilities of House of Commons to check the points which has been mentioned
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within the bill. After having the analysis on the bill, it will be necessary for the members
to give the title so that further discussion can be done on it. Second Reading: It will be counted as one of those stage where it will be important to
understand the points which are mentioned within the bill are suitable (Besley, 2015). It
becomes the responsibility of the member of second reading to check whether the points
which are mentioned can help to form relevant act or not. Committee Stage: It is the stage where major discussion is to be done for the purpose of
check all the points. In this particular stage, member of House of common will have the
responsibility to points out those points which can make issues at the time of passing the
law. After having detail analysis they will forward the bill for next stage. Report Stage: The responsibility of the member in this respective stage to bring changes
on the points which has been marked by committee stage. It is because it will allow to
make bill more stronger through which motive can be attained. Third Reading: The bill reaches to this particular stage only if report stages completes
their roles and responsibilities by bring up the changes in the bill. Updated bill is
presented in front of the member so that they can cast the vote in favour or against. Bill
can be transferred further in that respective situation where vote has been given in favour. House of Lords: Here, peer members will have the responsibility to perform the task to
pass the bill. The bill is again needed to be passed by different stage with the help of
member presented in House of Lords. Same stages are to be conducted which has been
conducted by House of Common. Royal Assent: After checking the sustainability of the bill from different stage, it becomes
important to give the proper justification (Hanrahan, Ramsay and Stapledon, 2013). For
that, it is necessary that approval must be obtained from Queen. Once the approval is
obtained the bill become new Act which is to be followed by everyone.
Common Law and Statutory law in Justice Court
In justice court, judgement is always based on the laws and facts which are being
presented in it. If in any of the circumstances, proper judgement will not be provided then there
will be very less probability that accurate results will be obtained. In case of statutory law, this
are based on the laws which has been passed by the parliament House. Looking at the matter of
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the case, laws and remedies are needed to be applied on the case. This will simply allow the
judges to give their judgement on the basis of situation raised in the case.
Implementing common law in any of justice court is quite difficult but judges have to
take the reference of different cases and case laws for the purpose of declaring the result. This is
quite length process but gives the opportunity to the judges of justice court to declare its decision
of own. This is how common law is being applied within court.
Critically evaluate the effectiveness of business legal system considering recent reforms and
changes
It is needed to be understand that changes are required to be done in any of the legal
system but some of the legal system requires in short time duration whereas some of them
doesn't required longer period of time. In context of UK law and legal system they have been
framed by parliamentary and judicial body. The legal system was not formed in a systematic
manner by early in nineteenth century it has been framed in a systematic manner which had
given the opportunity to take decision for longer period of time.
It is one of those legal system which allows to take long terms decision which reduces the
expenses for the business organisation. But there are some of the circumstances where it is
needed to be understand that changes must be brought according to the requirement of situation.
It is mainly found that whenever changes are not introduced time to time then in that respective
situation people get the opportunity to misuse the law by finding the alternate ways to earn the
money (Scheuer, 2015). It means that laws which are being formed in UK is effective for making
any of the long term decision but there are high chances that every time similar form of result
will be obtained in it. Secondly, there are certain laws and regulations which has been
commenced but they are not being implemented just because public at large doesn't have the
knowledge in it so amendments are required in that respective section as well. In short, legal
system of UK is effective but there are some of the laws and regulations where changes must be
brought for more effective results.
TASK 2
Impact of Company, employment & contract law on any of business organisation.
Company law: It is the law which governs any of the business entity. This is the law
which simply delivers the idea that what are the laws and regulations need to be followed in any
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of the organisation. It simply allows to take long term decision which makes working
environment easy for the top level management. It gives the idea from the initial phase to
winding up process. There are lots of positive as well as negative impact of company law on any
of the business organisation. The main impact is that if organisation fails to conduct any of the
annual general meeting within the financial year then legal penalties can be imposed.
Employment Law: The law and regulations which guides that how any of employer and
employee can maintain their relation for the purpose of running business activity in a successful
manner is known as employment law (Nica, 2013). It gives the idea that how any of the business
management should treat their employees. Impact of employment law on business organisation is
that it doesn't allow any of the business to take those steps through which discrimination can be
done. Additional, it also allow to develop the environment which can allow to work freely within
the business premisses.
Contract Law: It is the law which has been introduced just for the purpose of forming
legal relationship among the employees. It becomes important that all of the terms and condition
must be followed once parties enter into the contract. The main impact of contract law is that it
doesn't allow to breach the terms and condition which gives the idea that target can be
accomplished within the specific time period.
Difference between Legislation, regulations and standards for any of business.
Legislation: It is the main body which commences the law for any of the business
organisation. The main duty of legislation is just to ensure that proper laws has been formed as
per the requirement of the business organisation.
Regulations: It is quite different from legislation as laws are formed by the legislative
body but it is needed to identify that what are those laws which is applicable upon any of the
particular field. The main work which is being focused by regulation is that how any of the rules
is needed to be followed so that desire outcomes can be achieved.
Standards: While talking about the standards, it plays the crucial role because it is one of
the way which will tell that how any of the work is needed to be performed in any of the
organisation. Major role of standard to find out that what legislation and regulations are being
considered or not in a specific manner (Bayern, 2016).
Legislation, regulations and standards are quite different from each other but still all of
them have a common objective which is related with following the rules and regulations.
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TASK 3
The process of establishment of a business organisation starts with selecting a best
suitable business formation that helps to meet all the requirements of a business. Formation of a
business establishment can takes place in any form such as incorporated and unincorporated
business ventures. The number of options that are available with Dominica in order to establish
business operation is as follows-
Unincorporated businesses
Sole Proprietorship: Business organisation which is formed and operated by an
individual is termed as sole trader business. Maximum number of businesses which are operated
at small and medium scale are established as sole proprietorship business. Sole trader business
can be established on the name of owner or any other legal name. In the process of formation of
a sole trader business name of the business is selected which is not used before. If sole trader
business involves trading of goods that required permits and licence then they must be obtained
in order to operated business operations (Clarke, 2013). This form of business is preferred when
scale of operations are small and availability of funds is minimum.
Management and Funding
Businesses of sole trader are owned and managed by a single individual who is the owner
of the business. All the decision making power in sole proprietorship lies in the hands of the
owner and this sometimes leads to delay in the process of decision making. Business when
started as a sole trader then funds invested are limited to a certain limits as availability of
financial resource with one individual will be limited. Sole trader business have minimum access
to funds because financial institutions do not grand high amount of loans to businesses. As it is
owned and managed by single person and involves high level of uncertainty in success.
Partnership Business: This form of business venture is initiated by two or more
individuals who possess interest in same operations and available with a motive to earn profits.
Partnership business is governed on the basis of partnership dead signed by all the partners of the
business. Business do not possess legal existence different form that of the owners (Murray,
2015). This form of business is preferred when more skills is required to operate business and
funds are required more then a sole trader business.
Management and Funding
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This form of business organisation is managed by working partners in the business. A
partnership business is operated with more skills and knowledge as experience owners in
different areas are available to manage different activities. Partners by mutual consent got agree
with a particular activity to be performed. Through this manner each activity is performed by the
partner who is efficient in that particular area. A partnership business have more access to funds
then sole proprietorship because resources of all the partners are available to meet financial
requirements in business. Access to loans and arrangement of funds is more easy when business
is established as partnership.
Incorporated businesses
Private Limited Company: It is a form of privately held small business entity that
facilitates liability of owners to be limited to their share and number of shareholders are limited
to 50. Establishing this form of business restricts public trading of shares. This form of business
possess separate legal entity different form its owners. The process of formation of a company
takes place through filling number of documents at companies house.
 Form IN01 specifies details about the company such as name of the company, initial
director and shareholders are made available. Name of the private limited company must
end with “Limited”.
 Memorandum of Association and Articles of Association is established (Voss, 2016).
 Number of shareholders and share capital is made available as per mentioned in the
Company law.
 A private company must have at least one director.
Management and Funding
In terms of limited company management process is fulfilled through directors also
shareholders of the company can also contribute towards management. As management and
ownership of business establishments are different and it leads to better decision making with
qualified and professional managers. Funds to a private company are made available through
capital contribution of all the shareholder. Together with this availability of loans through
financial institutes are high then unincorporated business structures. This form of business is
preferred when business is required to be established as separate legal entity by operations are
performed at small and medium scale.
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Public Limited Company: This form of business organisation possess separate legal
entity form its owners and available with all the features that a incorporated business form
possess. Unlike limited companies this form of company can issue their shares to public at large
and through registering with a recognised stock exchange it also facilitates for public trading. In
order to establish a business as public limited company certificate must be received by
Companies House. Formation process of a public limited company in UK is as follows-
 Name of the company is selected which must not be similar to any existing business
name.
 Make an application for registration of the company with details of name of the company,
registered office address and the type of the company for which registration must be
done. Two directors and a qualified secretary must be present in a public company.
 Memorandum and article of association must be drafted (Rohlin and Ross, 2016).
 Incorporation documents with companies house must be filled and trading certificate
must be received.
Management and Funding
A public limited company is managed by the directors who are appoint to ensure that all
the business operations are performed in planned manner. Directors are qualified and
experienced individuals and management takes place with high skills and knowledge. Funds to a
public company are managed through shareholders investment in business. Together with this
financial instruments like debentures, bonds are used for managing finances in the business. A
public limited company have access to loan form various financial and non-financial institutions
for generating finances for business activities (McCorquodale and et. al., 2017). This form of
business is established when requirements of huge amount of finance is their and scale of
business operations are performed at national and international level.
As, Dominica wants to establish a small company at initial stage it will be advisable to
establish a private limited company.
TASK 4
Case Scenario
In the present case, Franck started employment with First Healthcare Service Ltd. On 1st
September 2019 and on 7th September 2019 due to serious performance management issues he
was dismissed for the job without any notice. Here a situation of dispute has arises among
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business and employees regarding legal rights that each of them possess as per business and
employment law.
Issue
The case involved an issue of unfair dismissal of an employee form their job without
providing any prior information through notice. As employees are appointed on a particular job
and organisation possess to dismiss employees form their job with a valid reason and by serving
a proper notice to them. Here, no information is provided and a situation of legal conflict has
raised among business and its employees.
Rule
The applicable law in this case is Employment Act, 2012 which determines some rights
and responsibilities available to each employee working in the industry. As per this act each
employee possess right to receive notice prior to action of dismissal from a job position. As per
this act an employee is entitled to claim unfair dismissal by questioning the procedural aspect
and denying existence of the element of non-performance (Nica, 2013). When such situation is
created then employee can also allege unfair labour practices on the part of employer. When
contract of employment specifies certain terms to make dismissal the dismissal on the basis of
these terms will also be justified if no notice is provided for dismissal.
Application
The Employment Act, 2012 will be applicable in this case and dismissal of Franck will be
termed on the basis that no such terms were available in his employment contract. To support
this situation one of the famous case law Lancaster and Duke Ltd. V Wileman [2018] is
considered. In this case the Employment Appeal Tribunal held that in situation when employee is
guilty of misconduct then termination become effective and no extension will be made to
compete notice period (Lancaster and Duke Ltd. V Wileman, 2018). Here, dismissal is made on
the basis of performance management issue and non availability of proofs with employer do not
qualify such statement to be proved true and fair.
Conclusion
Analysing the provided case and applicable law it can be concluded that claim of
employees to make unfair dismissal is justified. As it is legal rights of employees to get prior
notice of dismissal when no activity against organisational policy and standards are performed.
Business as per their legal rights can remove any individual who is performing illegal or non
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ethical activity. In case of unfair dismissal on the part of business organisations employees are
provided with all the rights to take any form of legal actions which provides them suitable
solution (Scheuer, 2015). Case can be filled to employees appellate tribunal in order to decide
verdict of the issue involved. Their is another method through which case can be resolved is
available with organisation and employees. This case can be resolved with the help of Alternate
Dispute Resolution. Through which cases are settled outside the court and solutions which is best
suitable to both the parties involved is provided. Arbitration will be used and a qualified judge of
the court will be appointed to become a arbitrator of the case and after considering the issue with
all the facts decision will be provided. This decision will be binding on both the parties involved
in the case issue.
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CONCLUSION
It is concluded from the file that Dominica is required to understand the legal language
before setting her business within the premisses of UK. In any of the situation the final authority
to form any of the new law is given to Queen as her acceptance of the bill makes new act or law.
In any of the situation different laws must be followed by business organisation and if they fails
to do so then legal actions can be taken which can damage the goodwill of an organisation.
Whenever any of the business is needed to be setup, firstly it will be necessary to identify that
what are requirement of investor as on that respective basis fund and teams is required to be
brought in. Also, there are some of the disputes within the business organisation that can be
solved by taking the help of Alternative Dispute Resolution.
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REFERENCES
Books and Journals
Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of
Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Business law and the legal environment.
Cengage Learning.
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Clarke, B., 2013. Military occupation and the rule of law: The legal obligations of occupying
forces in Iraq. In International Trade and Business Law Review (pp. 135-139).
Routledge-Cavendish.
Cox, J. ed., 2015. Business Law. Oxford University Press, USA.
Hanrahan, P. F., Ramsay, I. and Stapledon, G. P., 2013. Commercial applications of company
law. COMMERCIAL APPLICATIONS OF COMPANY LAW, CCH Australia Ltd,.
Harner, M. M. and Rhee, R. J., 2014. Deal Deconstructions, Case Studies, and Case Simulations:
Toward Practice Readiness with New Padagogies in Teaching Business and
Transactional Law. Am. U. Bus. L. Rev. 3. p.81.
McCorquodale, R. and et. al., 2017. Human Rights Due Diligence in Law and Practice: Good
Practices and Challenges for Business Enterprises §. Business and Human Rights
Journal. 2(2). pp.195-224.
Murray, J., 2015. The social enterprise law market. Md. L. Rev. 75. p.541.
Nica, E., 2013. Social Responsibility, Corporate Welfare, and Business Ethics.
Psychosociological Issues in Human Resource Management. 1(1). pp.9-14.
Rohlin, S. M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
new and existing business. Economic Inquiry. 54(1). pp.361-374.
Scheuer, L., 2015. The Legal Marijuana Industry's Challenge for Business Entity Law. Wm. &
Mary Bus. L. Rev. 6. p.511.
Voss, W. G., 2016. European union data privacy law reform: General data protection regulation,
privacy shield, and the right to delisting. The Business Lawyer. 72(1). pp.221-234.
Online
Lancaster and Duke Ltd. V Wileman. 2018. [Online]. Available through:
<https://www.employmentcasesupdate.co.uk/site.aspx?i=ed37239>
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