Legal Issues in Business Organizations Tourism and Events Organizations

This report discusses the impact of company law, employment law and contract law on business organizations in the UK. It covers the regulations and compliance requirements for corporations, the rights and duties of directors and shareholders, and the importance of employment law in protecting employees and employers. The report also highlights the significance of contract law in regulating agreements between parties and the potential positive and negative impacts on businesses.

LEGAL ISSUES IN BUSINESS
ORGANIZATIONS TOURISM AND
EVENTS ORGANIZATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Impact of Company Law, Employment Law and Contract Law on business.............................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Every business organisation has a variety of legislations that need to be complied with
and hence there are frequent legal issues that arise in any given organisation. Moreover, the
laws are the set of rule that are been made by the government and abided by the citizens
and companies in order to maintain the peace in the society. The present report will
discuss on the impact of the company laws and contract on the business. Furthermore, the
study will also depict about the employment act and it’s important on the business
MAIN BODY
Impact of Company Law, Employment Law and Contract Law on business
The formation of laws impacts the overall manner in which the economy, its people and
organisations operate. The laws regulate their decisions and monitor their actions thus impacting
their decisions and operating capacity (Milman, 2017). These can be evaluated in context of
different laws and the impact they have on businesses in different manner.
Company law of UK is basis of regulating the activities of corporations and comes under the
broader Companies Act, 2006. There are two main areas of governance that are covered under
corporate law which are corporate governance and corporate finance. There are various aspects
that regulate the overall working of the companies that operate in UK and their business
structure. The company law dictates corporations regarding their composition, their laws that
need to be complied with, certain documents that need to be prepared compulsorily.
For instance, there are various duties which the directors of companies need to be comply
with towards employees, shareholders and the environment. Documents titled Memorandum of
Association and Articles of Association need to be made during incorporation and also the
naming rules related to formation of company have been updated (Johnston and Segrestin, 2021).
Rights of shareholders, rules related to holding of Annual General meeting etc. have also been
implemented requiring strict compliance. The insolvency law of UK also falls under the
company law of UK which regulates those companies that are unable to repay the debt. The case
law of Salmon v/s Salmon & Co. (1897), for instance was a major case in the decisions about the
aspect that every corporate would be recognised as a separate legal entity having its existence
apart from the assets and liabilities that a company owns. Shareholders are liable only up to their
percentage of share in the company.

Such decisions and case laws impact the overall working and performance of the companies
operating in UK. The corporate financing structure also comes under the radar of company law
indicating the proportion of equity and debt financing that company maintains. Further the
different formats of corporations are allowed to have different fund raising platforms and rights
i.e. they might be limited by shares or by goodwill depending on their structuring (Davies, 2020).
The voting rights granted to shareholders and the reporting framework comes under the
regulation of the Company Act of UK.
Furthermore, the company is law is very important for running the business in the
external environment. Moreover, this act has been passed by the parliament of UK in
2006 in order to protect the rights of the shareholders, codify the duties of directors
as well as to reduce the administration burden form the organization across UK. For
instance, the director of the company has special rights and duties that are needed to be
incorporated by them in order to sustain the business in the market. Such as giving perks
to the shareholders as well as project the environment and customer from the fraudulent
products and services. Along with this, Stakeholders can have copy of the information
related to the company so that it can know the market condition of the firm. Furthermore,
this law is important because it make sure that there is no default that can affect the
functioning of the firm and it provide the company with the outline. So that it can
conduct the business in appropriate way and benefits the environment.
British Airways for instance is a major tourism organisation in UK which is public limited
company having majority shares held by common public. This ultimately indicates that although
they have expansion flexibility due to being government oriented but yet the funds available are
comparatively limited. Further, the overall subsidiaries that operate under British Airways, the
alliances etc. all are governed by the Company Law. Apart from this, the annual general
meetings held by the organisation, annual report prepared etc. all are in compliance with the
Company Law, 2006 thus indicating that this law regulates the activities undertaken by
companies.
The Employment act was passed by the parliament of UK in 1996 in order to protect
the rights and liability of the employees and employers working in the company
(Nightingale, 2021). Along with this, the employment contract is a written document consist
of rights and duties as well as regulated the term and condition of the employment between

both. Furthermore, the rights of the employees is have proper wages as well as safeguard
the subordinates from unlawful discrimination on the basis of age, gender race and
religion. In addition to this, the employer’s duty is to provide the safe working environment,
inform the workers about their rights and duties. The employment act effect on the
business in a negative way as the organization has to spend more on the training and
development programmes. Such as the company has to spend on the health and safety as
well as proper pay with extra perks in order to increase the motivation (Mutia and Muindi,
2019). Kostal UK v Dunkley is the famous case of employment act in this case the question
of employers offers was arise weather the offer can be made to the trade union member
will be unlawful or not. Along with this, the Hays travel is one of famous travel;
company that provide wit tourism services to their customer. Moreover, this company
follows employment law in order to develop the health environment.
Moreover, it protects it employees from the discrimination and pay the equal wages
to the them in order to increase their moral. In addition to this, the employers of the
organization has to fulfil their duties such as giving the right instruction to the
subordinates so that no harm is conducted while working with the machinery (Batton,
and Wright, 2019). The Employment act is very important as it treat the worker with
the integrity that contributes in increasing the moral high. so that it can work hard
and improve the market position of the form in the competitive market. Along with this,
it helps the company in building the healthy relation with the works as well as lead s in
increasing their loyalty for the firm. Thus, it impacts on the business in very positive
manner as employees are the key sources for running the firm. Along with this, y
following this law the organization additional cost is increase as it has to conduct
various activities for building the healthy working environment.
However, there are mentalities that organization has to bear if it has not followed the
law. Such as the business owner can be sent to the prison for 5 years if there is false
information in the contract as well as hiring the employees that did not have right to
work in UK (Guest and Clinton, 2017). The firm has to pay £20,000 for the illegal work
conducted in the organization. Moreover, the current employment law of the UK is the
workers must have minimum legal rights such as right to receive the notice
relating to the work up to 12 weeks and the maximum working week should not be

more than 48 hours. As well as the minim wages for the employees is £8.72 for per
hour for the worker age more than 25 age rates are lower for the younger subordinates.
In addition to this, most the employment act is also followed in the forms of the
business organization (Pleasence, Balmer and Denvir, 2017). such as sole proprietorship that
is run by the single owner and it is easy to set up as well as not very costly. Along with this,
it has unlimited liability meaning the owner of the company enjoy the rights on the
assets and liabilities. It mainly follow the company law and it is bind to follow
that for conducting the commercial activities. Furthermore, the common disputes faced
by such business is not having a proper licencing. On the hand, partnership is a type of
business in that two or more individual; collaborate together in order to accomplish the
common goal. For establishing such company both partners has to make a contract under
the partnership act in order to avoid any law suits (Chandola and Rouxel, 2021). In
addition, to this, the command dispute in this business are fraud that can be entity as
solve through the contract act as well as company law. Whereas, cooperation is a business
organization with separate legal well as it is represented by share of stock. Along with this,
the shareholders enjoy limited liability and have less involvement in the firm.
Moreover, The English contract act is a set of rules that are being bound by the
parties that make the agreement. Generally, the contract means an individual made an
offer to the another person and it accepts it in the form of oral communication is
considers as contact. Moreover, contract are of various form such as valid, void,
voidable, illegal and unenforceable contract. In addition to this, it is one of the most
essential elements of the business and majorly it is seen in the partnership form of
business. Furthermore, every organization is providing services and contact law is present
in purchasing and selling and the terms and condition is involved between the client
and the partners (Varney, 2017). That contribute in protecting organization form the
false law suits as well protect the right of the customer form fraud act. Along it this
most of the companies make the contact in the written form to be on the safe side.
However, the contract law can impact on the business in positive as well as negative
manner such as if there is written agreements between the parties it can protect the
company form the fraudulent act (Pak, 2020). Whereas, if agreement was in the oral
form organization ca face financial risk as well as the brand image of the firm can be

spoiled in the market. The famous case law of contract act is Carlill v\s Carbolic
Smoke Ball company, 1892 in case appeal court held that there was an element of
contract made by the company such as offered, acceptance and consideration.
Moreover, the famous company of UK beyond business travel is following the
contract law with the customer by offering the travel services (Brekoulakis and
Devaney, 2017). And if any breach is made the organisation then customer has a
right to sue and demand for compensation.
CONCLUSION
From the above report it has been concluded that contract, company and
employment act is an essential part of the business. It allows the organization with
the outline for operating the company in the competitive environment. Along with
this, it has been summarized from the study that there are various terms and condition
that are require to make the contract and employment act. And any breach in the
legal condition cam affects the overall agreement. Lastly, report has depicted the impact of
these laws on the business such as the positive and negative effects.

REFERENCES
Books and journals
Batton, C. and Wright, E. M., 2019. Patriarchy and the structure of employment in criminal
justice: Differences in the experiences of men and women working in the legal profession,
corrections, and law enforcement. Feminist Criminology. 14(3). pp.287-306.
Brekoulakis, S. and Devaney, M., 2017. Public‐Private Arbitration and the Public Interest
under English Law. The Modern Law Review. 80(1). pp.22-56.
Chandola, T. and Rouxel, P., 2021. The role of workplace accommodations in explaining the
disability employment gap in the UK. Social Science & Medicine. 285. p.114313.
Davies, P., 2020. Introduction to company law. Oxford University Press.
Draper, M. J. and Newton, P. M., 2017. A legal approach to tackling contract
cheating?. International Journal for Educational Integrity. 13(1). pp.1-16.
Giliker, P., 2021. Legal Ignorance in England and Wales: A Study of Contract, Tort, Unjust
Enrichment and Civil Procedure Law. European Review of Private Law. 29(2).
Guest, D. E. and Clinton, M., 2017. Contracting in the UK: Current research evidence on the
impact of flexible employment and the nature of psychological contracts. Employment
contracts and well-being among European workers, pp.201-223.
Johnston, A. and Segrestin, B., 2021. Lost from view: the legal invisibility of managers in the
UK. In The Emergence of Corporate Governance (pp. 33-50). Routledge.
Milman, D., 2017. Stakeholders in modern UK company law. Sweet and Maxwell's Company
Law Newsletter. (397). pp.1-4.
Mutia, A. and Muindi, C., 2019. Impact of Employment Law on Employment
Relationships. East African Journal of Law and Ethics. 1(1). pp.39-52.
Nightingale, M., 2021. Part-time employment and the gender gap in low pay for UK
employees: what changed over the period 1996–2016?. Community, Work & Family. 24(3).
pp.272-290.
Pak, J. M., 2020. Application of the Terms and Conditions of English Law Related to the
Duty of Utmost Good Faith under Marine Insurance Contract: Korean Supreme Court
Decision 2018.10. 25, Docket No. 2017Da272103. Journal of Korea Trade. 24(6). pp.19-36.
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Pleasence, P., Balmer, N. J. and Denvir, C., 2017. Wrong about rights: public knowledge of
key areas of consumer, housing and employment law in England and Wales. The Modern
Law Review. 80(5). pp.836-859.
Varney, E., 2017. Redefining contractual capacity? the UN Convention on the Rights of
Persons with Disabilities and the incapacity defence in English contract law. Legal
Studies. 37(3). pp.493-519.
Online references
A, B., 2018. [Online]. Available through <>
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