Employee Rights and Directors' Responsibilities

This assignment delves into the rights of employees and the duties of directors within a company context. It examines the consequences of unfair dismissal, including negligence and intentional torts, as well as the importance of considering grounds for termination. The report provides a summary of key laws related to employee rights and factors to consider when running an organization to prevent heavy loss.

Law for Business
managers

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Meaning of “representation” and how it can distinguished from term of contract.................1
2. Grounds on which dismissal from employment would be unfair...........................................2
3. Duties of company directors...................................................................................................4
4. Principles governing award of damages in law of tort and ways of limiting these damages. 6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Legal laws for business managers are consider as commercial and trade laws which is
applies by them while running their entity in order to control probabilities of mistakes or errors.
Basically, it is often seen as branch of civil law which deals with matters of both public as well
as private law. In fact, numerous of regulatory schemes are designed for managing commerce
specially employees versus customers (Horrigan, 2010). Therefore, this project is going to
highlight the term contract and representative for understanding the difference between these two
with the help of example which is related with Monica case. Furthermore, various grounds of
employment dismissal are explained in the project. Along with this, necessary duties of directors
are also outlined in the report for suggesting Board members where Monica is working. At the
end, some of the necessary principles will explained related with damages and ways of limiting
those damages.
MAIN BODY
1. Meaning of “representation” and how it can distinguished from term of contract
According to given case study, Monica have just begins her job as human resource
manager at a large organization of accountants known as Young & Ernst LLP and now looking
for new car. Thus, she visited to a local second hand car dealership which is named as Cars R Us
where she has noticed the 2006 Ford Mondeo. Therefore, Monica tells to the car salesman that
she doesn’t having much more knowledge about cars but she is looking for an affordable car for
her office use. As a result, salesman of car enforces her that today is a very lucky day because
2006 Ford Mondeo is absolutely most suitable car for her over the world. Hence, Monica
purchases the car by having faith on dealer and entered into a contract (Rosenbloom, 2018).
By analysing the entire situation, it has been understood that Chandler who is a car
salesman is consider as a representative of local car shop who is responsible for showing the
vehicles to the end users in order to encourage consumer for buying certain car. In simple terms,
presentation of facts through words or by conducting any activities to another person is known
representation. Basically, information is presented by an individual through several methods is
known as agent in legal terms. It means that person is responsible for providing information
about certain products and services. Mainly, representative is acting on behalf of specific
organization or principal for accomplishing their set targets in a defined time frame. Hence, as
1

per the given case study Chandler who is a salesman of local car dealership is responsible for the
damage of car and Monica will definitely have a right to sue him if there is any damage because
entire facts or figures about vehicle is explained by him to the customer. This shows that dealer
of car is consider as representation of an organization in front of end user in order to grab their
minds towards selected product or services which is offered by an association.
On the other hand, contract is a legal term which covers all the necessary conditions that
gives warranty in an agreement. However, terms in a contract is totally legitimate which helps in
controlling probabilities of heavy loss and safeguard the customer from getting misused (Ye,
Law Gu and Chen, 2011).
After understanding the meaning of both the terms such as; representation and terms of
contract it has been analysed that both are distinct from each other in various manners. For
example; terms of contract provides warranty in any agreement as well as control the chances of
loss whereas in representation there is absence of any guaranty upon truth. Hence, according to
given case study Monica doesn’t know about term of contract and buy the car by believing on
representative of association. As a result, she can sue only car dealership instead of company
because she hasn’t any term of contract and absence of legitimate bodies (Snigdha, 2018).
Basically, contractual term is cover all the necessary terms and conditions under legal
Acts which includes several elements such as; offer, acceptance, undue influence, absence of
minority, consideration, terms and conditions. All these factors are signed under legal laws for
minimizing possibilities of fraudulent activities that might incurred during entire circumstances.
In fact, there are number of cases are identified as same as Monica in which representative sell
the product without involving customer in a legal terms of contract. For example; Adams v
Lindsell (1818) 1 B & Ald 681, 6/64 Falminio Costa v ENEL [1964] ECR 585 and many more
cases are there which shows the significance of contract terms. Apart from this, there are number
of other situations are incurred where representation and terms are distinct from each other
(Adams v Lindsell, 2018) .
2. Grounds on which dismissal from employment would be unfair
As per the given scenario, Monica is working in Young & Ernst LLP where she is human
resource manager and going to attend meeting in order to resolve two major issues. First issue
which is raised is that board members are unhappy with employee at workplace due to which
Monica have called by them for asking best suggestion in this situation. According to Legal
2

bodies, wrongful dismissal is also known as wrongful termination of employees. However, it’s a
situation in which staff members are going to discharge by head of an organization. At the same
time, there is a concept of constructive dismissal in which any staff can feels that they don’t have
any choice and need to resign from the post that resultant into violation of employer’s or legal
rights. All the employees are having authority to not to be dismissed unfairly because legal
bodies have enacted number of laws. Basically, right is enshrined within Section 94 (1) of
Employment Right Act 1996. This legal Acts have described various situations in which staff
members can dismissed (Fassin, Van Rossem and Buelens, 2011). However, any supervisor or
employer of an organization have a right to fairly dismiss their staff under following reasons
which is discussed as follows-
 Capability- According to this element, supervisor of an association can assess the skill,
aptitude, healthy or any physical or mental quality of an employee for dismissing them
on fair grounds.
 Qualification- This means that specific qualification is requisite for relevant job.
 Redundancy- As per this factor there must be any fixed contract which is going to
terminate in certain time period.
On the other hand, if employee has been dismissed on the basis of unfair grounds then it
is not acceptable by legal bodies and staff members have an authority to take strict against unfair
dismissal. Unfair things is related with victimisation which is related with race or gender that is
totally unlawful in legitimate terms and conditions where employees were victimised in specific
way that is consider automatically unfair. Additionally, supervisors of an association can also
humiliate their subordinates on the basis of trade union activity because they are having certain
statutory rights. For instance; authority of raising a complaint of discrimination or if there is any
breach of health or safety terms in employment court (Beamish, 2013).
Moreover, if employer of an association is going to humiliate their staff in that extent in
which their relationship of employment is totally damaged. Hence, there are numerous of
remedies are available which is based on few specific situations. It means, if there humiliation is
associated with discrimination or harassment that is totally based on race, gender or disability
then in this situation employees have a full right to claim in employment court. Therefore, all the
employers and head department of an organization is responsible for treating their staff with full
of respect in order to maintain trustworthy relationship with them because legal bodies have
3

imply certain term of mutual trust and confidence into an agreement of employment. This shows
that, if an employer of a firm humiliates their staff members or takes any other action which
resultant into breach of mutual trust or confidence. Along with this, legal bodies clearly states
this situation as a fundamental break of contract which is set by employment tribunal and then
subordinates have an authority to resign from his/her post as well as right to claim constructive
dismissal.
Consequently, it has been understood that legal bodies have enacted number of legitimate
rights and authorities for employee’s betterment in order to protect them from unfair dismissal.
Thus, it is essential for board members of Young & Ernst LLP association to consider necessary
elements while dismissing their staff members through which they are unhappy for defending
themselves from legal issues (Schoonjans, Van Cauwenberge and Vander Bauwhede, 2013).
However, labour laws are having number of provisions which helps in protecting employees
which were unfairly dismissed from enterprise such as;
 Section 14 of Payment of Gratuity Act 1972
 Section 27 (1) of Maternity benefit act 1961
 Section 30 Contract labour (Regulation and abolition) act 1970
 Section 34-A of Payment of Bonus 1965
All these above provisions are supporting employees in various complex situations by
enforcing their employers to provide certain facilities during their service. It means that board
members of Young & Ernst LLP needs to aware about all these Sections of employment acts
which automatically plays a major role against them. Apart from this, there are number of things
are identified which act as unfair dismissal for employees such as; if there is an employee is
subjected to work in a stress and cause illness or damage then it is consider as stress related
personal injury (Frankel and Laby, 2015). It means, employer is obliged to take care of their
subordinates and if staff members are working in unsafe environment then this condition is seen
as unfair situation for employee. At the same time, if an enterprise is going to dismiss their
employees without giving any fair reasons then they have a legal right to claim against this
action. Therefore, board members need to consider all the indispensable elements before
dismissing their staff members.
4

3. Duties of company directors
In the given case study, Monica is working in Young & Ernst LLP where she is
responsible for suggesting board members about new appointed directors in order to clear their
duties and obligation at workplace. In fact, they have to know about their major roles in order to
perform it in appropriate manner as it helps them in dealing with certain complex situations. An
organization is acting through two bodies of people such as; shareholders and board of directors.
Mainly, board of directors are seen as in charge management of an enterprise such as; they are
responsible for making strategic and operational judgement of company. Along with this,
directors is responsible for ensuring that an organization have to meets its all statutory
obligations. It means, as a director an individual role is to take part in board meetings for
enabling the board to reach at final judgment and make sure that entity can easily fulfilled their
all obligations. At the same time, directors are also known as agents of an association and they
are hired by shareholders of a company for handling regular business operations. Therefore,
basic duty of directors is that they have to act simultaneously as a board member too but
specifically board are also delegate specific authority to individual or committee of board (Ip
Leung and Law, 2011).
Hence, according to companies Act 2006 there are few general duties of directors which is
discussed as follows-
 Act within powers- It means that director needs to act as per set constitution of an
association and authority to exercise only self-given powers for certain purposes. For
example; an enterprise has already set some certain constitution that includes such as;
articles of association, resolution and agreements of constitution nature (example;
shareholder or joint venture contracts).
 Promote success of an enterprise- Directors needs to perform all the activities in good
faith for promoting success of an association in order to offer advantages to each and
every members of business. Success is generally means a long term maximization in
value and fundamentally it’s all based on director for deciding. However, legislation
states that director needs to have regards to make long term decision, consider interests of
organizational employees, influence of business operations on overall community and
environment and many more (Yunus, Moingeon and Lehmann-Ortega, 2010).
5

 Exercise independent judgment- As per this element, directors must have authority to
make their own decisions without taking suggestion from any other person.
 Exercise reasonable care, skill and diligence- General knowledge, skilled and
experience must be reasonably be expected of an individual carrying out the similar
functions in related to an enterprise.
Therefore, it has been understood that directors have number of roles and responsibilities
towards entire business and employees in order to attain set objectives or targets in a defined
time frame. Along with this, liable for assisting staff members towards corrective direction in
order encourage them to attain professional goals and objectives (Puffer and McCarthy, 2011).
4. Principles governing award of damages in law of tort and ways of limiting these damages
It has been seen that in common law regulation, a tort is considered as civil wrong that is
related with unfairly causes someone else have to suffer loss or harm which would result in legal
liability for the person that commits the tortious act. Instead of that crimes can be torts; the
reason of legal course of action is not essentially a crime as the harm can be occurring because of
negligence. Damage would be awarded in accordance of a tort. The common aim of an award of
damage is to put the injured person in the similar position as he should have been in if the tort
had not arises. In case of any kind of damage the primary motive is to restore the claimant to
their pre-incident position. In any kind of contract, the reason of damage award is to put the
innocent person in the safe side that he would have been in had the contract been signed. The
award hence targeted on restoring the status-quo and must be compensating for any kind of loss
of their bargain. In case of tort case, no any specific question of reduction in the bargain can be
occurring. The claimant is not been complaining of their failure to implement a promise in
respect to any failure it must be time to leave the party alone. Someone pursue any kind of claim
under the case of tort, the main goal is basically the award of damages. In any legal legislation,
damage are an award which is typically of money that is to be paid to a person as compensation
for all kind of injury. Compensatory damage is mainly divided into special damage those are
economic losses of earnings, medical expenses and property issues (Blackburn, Hart and
Wainwright, 2013). However, punitive issues are not awarded in order to deal with the plaintiff
but instead of reform or deter the defender. Similarly the person from pursuing any kind of
course of action like damage occurs to the plaintiff.
6

There are certain other damages that are categories into the tort. Like liability for making
any kind of payment of an award of damages which is determine when the claimant proves. On
the equal of probability that defendants wrongful act which caused as tangible, loss to the
plaintiff. Once the threshold is met the plaintiff. It is entitled to few amount of recovery for that
damage. The court must be assessing the amount of compensation attributable to the harmful acts
of the defendant. There are certain special damages compensate that claimant which is related
with the quantifiable financial losses which would be suffered by the plaintiff. For instant,
additional cost, replacement of damaged property and other are taken into account under these
torts cases. They are seen as personal as well as commercial actions. Damage in tort would
awarded basically to the place the claimant in the position under which the person would have
been related with the tort that has not been taken place. Damage for breach of contract is
specially awarded to the place in which the claimant in the overall position in which it will be
come into the contract that has not been breached. Statutory damage is basically that amount
which is stipulated within the statute rather than the calculated aspects on the overall degree of
harm to the plaintiff. Legal damage must not be limited to physical injuries as well as cannot
conclude emotional, economic and violations of privacy (Bird, 2011). Plenty of the torts are
outcome of negligence that also recognizes as the intentional torts under which an individual that
has intentionally deal with the way that harms the other party. In certain doctrine of strict debt
for tort which is arising from injury that can be caused with the use of a company’s items and
other services.
CONCLUSION
From the above report, it has been summarized that an individual have number of rights
while getting involved in certain contract or buying process. Along with this, employees are also
having authority to take strict against unfair dismissal. Therefore, with the help of given case
study it has been understood that board members needs to consider various grounds, terms and
conditions while dismissing their staff members or any employee. Moreover, directors of an
enterprise are having various special rights, duties, roles and responsibilities towards
development of an association. It means, management of whole company is somehow based on
directors and they are liable for directing overall members of an organization towards corrective
manner. Hence, this assignment helps in clearing necessary laws related with employees and
7

various factors which is considered while running an association in order to control probabilities
heavy loss.
8

REFERENCES
Books and Journals
Horrigan, B., 2010. Corporate social responsibility in the 21st century: Debates, models and
practices across government, law and business. Edward Elgar Publishing.
Rosenbloom, D.H., 2018. Administrative law for public managers. Routledge.
Ye, Q., Law, R., Gu, B. and Chen, W., 2011. The influence of user-generated content on traveler
behavior: An empirical investigation on the effects of e-word-of-mouth to hotel online
bookings. Computers in Human behavior, 27(2), pp.634-639.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business
ethics, 98(3), pp.425-453.
Beamish, P., 2013. Multinational joint ventures in developing countries (RLE international
business). Routledge.
Frankel, T. and Laby, A.B., 2015. The regulation of money managers: mutual funds and
advisers (Vol. 3). Wolters Kluwer Law & Business.
Ip, C., Leung, R. and Law, R., 2011. Progress and development of information and
communication technologies in hospitality. International journal of contemporary
hospitality management, 23(4), pp.533-551.
Puffer, S.M. and McCarthy, D.J., 2011. Two decades of Russian business and management
research: An institutional theory perspective. Academy of Management
Perspectives, 25(2), pp.21-36.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Bird, R.C., 2011. Law, strategy, and competitive advantage. Conn. L. Rev., 44, p.61.
Yunus, M., Moingeon, B. and Lehmann-Ortega, L., 2010. Building social business models:
Lessons from the Grameen experience. Long range planning, 43(2-3), pp.308-325.
Schoonjans, B., Van Cauwenberge, P. and Vander Bauwhede, H., 2013. Formal business
networking and SME growth. Small Business Economics, 41(1), pp.169-181.
Online
Adams v Lindsell, 2018. [Online]. Available through< https://www.lawteacher.net/cases/adams-
v-lindsell.php >.
Snigdha, 2018. [Online]. Available through<https://blog.ipleaders.in/labour-laws-grounds-
termination/.
9

10

11