Impact of Company Law, Employment Law and Contract Law on Business

LFBM104
Legal Issues in Business
Organizations Tourism
and Events Organizations
Assessment for 2021

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of Company Law, Employment Law and Contract Law on Business.......................3
CONCLUSION................................................................................................................................7
REFERNCES...................................................................................................................................8

INTRODUCTION
Business in the United Kingdom is governed by the Companies Act of 2006, whereas
employee relations are governed by Employment Legislation. The laws regulates the business or
entity in accordance with current law, taking into account changing demands. The objective of
employment legislation, on the other hand, is to resolve workplace issues and maintain healthier
employer-employee relationships (Bentley, Lambert and Wang, 2021).
Employment legislation ensures that the corporation adheres to the same set of rules and
regulations as other businesses. Companies treat the employees unfairly in the workplace when
there is no employment laws in effect. Whereas, the contract law aims to regulate the agreement
between the parties. It aims to govern the contracts, and provides with remedy in case where
there is breach of provisions. Therefore, the essay aims to examine the impact of company law,
employment law and contract law on potential business.
MAIN BODY
Impact of Company Law, Employment Law and Contract Law on Business
As the principle source of law, the parliament of United Kingdom passed the Company Act
of 2006. The act has almost 1300 parts crammed into 700 pages, it is considered as United
Kingdom’s longest piece of legislation. In 2009, the act was repealed by the New Corporation
Tax Act. The main aim of the act is to modernise and simplify the regulations devised under the
company law by codifying the obligations of the company directors, by offering expanding rights
to the company’s stakeholders and further, by reducing the additional burden faced by the
businesses which are operating in the United Kingdom. The rule of company law allows the
business to better understand the expectations by them in their personal capacities. These rules
helps the business to engage in fair transactions and dealings. It provides corrective measures by
which disputes can be resolved effectively (Singh, 2021). Furthermore, it prevents others as well
as government from infringing rights, as granted under the act. The aim of the company law is to
provide guidance and even direction to conduct business activities in the changing environment.
For instance, it provides the businesses or other party to file a complaint in proper court or help
in directing alternative method to resolve disputes.
Additionally, with the company law the notion of ‘separate legal entity’ is also emerged, in
Salomon v Salomon & Co Ltd [1879]. It protected the proprietors from sacrificing their personal