Kango Company Dispute Resolution

The assignment report discusses the importance of following legal laws and regulations for Kango company in the UK to operate without government intervention. It highlights the company's experience with disputes with its IT supplier and charges of breaching law by wearing self-employed people's uniforms. The report concludes that effective communication about legislations related to their field and using an unbiased arbitrator can help resolve disputes.

The Legal
Framework And
Legal Solutions

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1 Main principles of English legal system and proposed legislation that affect Kango's
business operations......................................................................................................................3
LO2 Factors used by courts to define employed and self employed...........................................5
LO3 Types of business organisations available to Kango company and evaluating an
appropriate business solution.......................................................................................................6
LO4 Evaluating the alternatives in resolving disputes and Kango's effect on the alternative
methods........................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
The legal framework is concerned with a set of rules that govern the decision making and
agreement of an organization. A legal framework consists of constitution, legislation, regulations
and contracts and it is imperative for every company to follow it. The current report will focus on
Kango, a food delivery company established by Jay and Alex in the year 2016. Headquartered in
London, UK, the company is facing certain legal problems related to there operations and the
current study will focus on the available legal solutions for the problems.
MAIN BODY
LO1 Main principles of English legal system and proposed legislation that affect Kango's
business operations.
It is imperative for Kango company to provide knowledge of English law and legal
system to their employees in order to ensure smooth working of their business. The adequate
study of laws and regulations can give employees a guideline about their duties and
responsibilities and would further lead to growth and development of the business.
English legal system: The English law has gradually developed over the years without
any interruption and it is very different from the laws of other countries in European Union.
Although, the English law has been inspired from Roman law principles but it has its own
framework which makes it powerful. For instance, the two divisions of high court still carry the
traces of the ancient forebears(Nedzel, 2019). Certain principles of English legal system are
 Doctrine of binding precedent: The doctrine of binding precedent is concerned with an
existing law that the court of law are bound to follow. It is imperative for Kango
company's employees to understand that it is compulsory for a lower court to follow a
holding of higher court in similar jurisdiction(Marshall, 2016).
 Creative powers of Judges: The Judges were the key decision makers in the United
Kingdom until 18th century and held the power to implement laws and bills in the court
of law. Although, later on the powers of the judges were suppressed by the parliament
and the constitution but till today the judges have some special powers to develop
principles of case law.
 The Adversarial nature: The majority of the countries including United Kingdom
follow adversarial nature in the court of law where two advocates present facts and
evidence to defend and prove innocence of their client. Upon the hearing, final decisions

is taken by the judge on the basis of proofs and evidence. Therefore, it is important for
Kango company to understand that adversarial system aims on proving facts rather than
identifying truth.
Evaluating the effectiveness of the legal system: In this rapidly changing world there are many
changes that take place in the field of business, law, science or technology. The main changes
taking place in the law and legal structure involves transforming the law in accordance with the
changes taking place within the market and related conditions. Lately, there have been many
modifications in the field of law. In the earlier times all the cases were held with in the same
court but now a days the courts are being differentiated on the basis of different case. All the
similar cases are solved in one court and all other different cases are solved in another court. For
instance like family court is separate where all the family cases are solved and the judgements
are provided with speed as it deals with only family cases and not any other case.
Another reform is concerned with Alternative Dispute Resolution (ADR) because getting
judgement from the court of law consumes a lot of time and efforts. The court of law also can
sometime hamper the business image of the company in front of general public.
The proposed legislations affecting the business operations of Kango company are
 Civil law: The civil law of United Kingdom usually deals with the disputes between the
individuals and the organizations. Civil law of UK identifies if the concerned person is
accused or not. The main purpose of this law is to settle disputes among the individuals
or companies. Civil body defines the rules, policies and regulations to protect the rights
of citizens and provide them with solutions.
 Criminal law: This law states the concern of preventing consequences, it is concerned
with prevention of any criminal activity done against whole community regardless to an
individual's affected. It includes rehabilitations, punishments to people who violates such
laws. The main concern of criminal law is what is the role of court, how they are
applying criminal statues and why forms of behaviour are treated as criminal.
 Company law: The UK company law was established under the company's act, 2006 and
its main objective is to regulate the working of all the companies and provide them
flexibility to grow effectively. Also, the company law aims to protect the interest of
shareholders, investors and suppliers. It is important for Kango company to determine
their duties and responsibilities under the act.

 Employment law: The employment act is concerned with protection of rights and duties
of employees and it states that there must be no discrimination on the basis of caste,
creed, colour and gender and the employees must be selected and paid on the basis of
their skills and talent(Taylor and Emir, 2015). Also, the act provides certain rights to
employees which they can exercise in case they are not treated fairly. The workforce of
Kango company must have complete knowledge about the employment Act in order to
understand their powers and duties.
 Contract law: Contract law is a branch of English law that binds the agreement between
two or more parties legally. It governs the relationship regarding the sale of goods,
services and exchange of ownership. It can affect the working of the Kango company if it
does not abide the contracts and laws(Austen-Baker, 2017).
LO2 Factors used by courts to define employed and self employed.
Employed individual: According to the employment act, 2002 an employee is an individual
working for a fixed wage or salary and performing the duties assigned by the employer.
Self-employed: A self-employed employer does not work for any company, individual or a group
of people. A self-employed person is an independent person that operates the day to day
activities of the business alone. There are various factors used by the courts to differentiate
between employed and self-employed that are
Basis Employee Self employed
Control The employee has no or a little
control on aspects of the
business.
The self employed person
takes control of all the aspects
of the business.
Substitution The employee does not have
the authority and power to hire
a substitute to perform the
duties for them.
The self employed person has
the complete power to select
someone who can perform the
duties in place of them for a
limited or an extended period
of time.
Mutuality of obligation There is no mutuality of
obligation for an employee
It is up to the self employed
individual's desire to whether

because it is their fundamental
duty to perform the duties
assigned to them. The only
obligation an employee is
allowed to do is to shift the
work or extend the date of
completion.
accept the work or turn it
down. There can be no
challenging to the final
decision of self employed
person(Aronson, 2019).
Profits and losses The employees are entitled to
salary even in the case of
losses incurred by the
organisation.
The self-employed person
takes the sole responsibility for
both profits and losses faced
by the company. He also
enjoys the profits and bears the
losses alone.
Employee type benefits The employees enjoy various
benefits like pensions,
incentives and rewards.
The only benefit enjoyed by
the self employed person are
profits.
Decision making There is no or a very little role
of employees in decision
making. Although, the
employer can ask for their
advice or feedback but other
than that employees do not
have any role in decision
making.
It is the fundamental duty and
responsibility of the individual
to make business decisions that
can further help in the growth
of the company.
PIMLICO PLUMBER CASE:
n the given case of Kango, The couriers were ordered to ride branded bicycles and clothes
labelled with Kango's name and logo. Also, there were multiple issues with delivers rota every
week like they were not allowed to take leaves without prior information as they had signed a
contract with the company as well. The given condition defeats the purpose of self employment
and on the contrary it satisfies the situation of being employed as they work under supervision of

management of Alex and Jay, CEO'S of Kango and they also have an employment contract.
Moreover, with application of ruling of Pimlico case, it can be stated that couriers are the
employees of Kango and not self employed(Prassl, 2017).
LO3 Types of business organisations available to Kango company and evaluating an appropriate
business solution.
There are three main types of business organisations namely sole proprietorship,
partnership and limited company. Each form has its own set of advantages and disadvantages but
it mainly depends on the size and operations of Kango company that can help in deciding the
appropriate business organisation for them.
Types of business organisations are
 Sole proprietorship: A sole proprietorship is the most common form of business
operated all around the world. The proprietor has complete control on the business, its
decision making and risk taking. They enjoy the profits and loss alone and are
responsible for the success as well as failure of the company. Sole proprietorship is not
suitable for Kango company because it has two partners Alex and Jay therefore it defeats
the main purpose of sole proprietorship.
 Partnership: A partnership is concerned with association of two or more persons that
agree to share the profits and losses collectively. The partnerships are governed under
partnership act, 1890 where the partners have unlimited liability. The partnership
business usually involves forming of partnership deed that states the ratio in which the
profits must be divided, decision making and duties of partners.
 Limited liability Company: A limited liability company is a company that is governed
by the company's act, 2006 of United Kingdom. In a limited liability company the
liability of all the member are limited to the extent of securities held by them. The major
benefit of a company is that it exists even after the death, retirement or termination of its
owners. Moreover, a company is an artificial person which means that it has the power to
sue as well as get sued by others(Nyoni and Hart, 2018).
In the view point of Skinner, 2015 the best option for Kango's is to adopt limited liability
company structure as it would help them to raise funds from general public and further increase
their growth prospects. Also, it continuously leads to inflow and outflow of cash thus
maintaining the liquidity in the business. The owners of the Kango organisation, Alex and Joe

would be required to make a Memorandum of association(MOA) to define the goals and
objectives and an Article of association(AOA) that states the internal rules and regulations and
responsibilities of employees in the business. Although, Travis, 2019 argues that there can be
certain restrictions related to control and decision making but in the long run if any business
wishes to grow then it is imperative for them to go public by transforming into a limited liability
company.
LO4 Evaluating the alternatives in resolving disputes and Kango's effect on the alternative
methods.
The alternative dispute resolution was introduced under the legal services authorities act,
1987 to provide an alternative solution for resolving disputes rather than going to the court of
law. The main objective of ADR, 1987 is to promote settlement between the two parties
(Blake, Browne and Sime, 2016).
The Kango company's recent dispute with IT suppliers created various problems related
to delay in food delivery and serving of cold food which affected the growth prospects of the
company and also affected their brand image. The dispute if taken into the court of law will be
time consuming as well as would affect the goodwill of Kango. Hence, there are certain
alternatives regarding resolving disputes:
 Negotiation: Negotiation is concerned with direct or indirect communication between the
two parties with opposing interests and opinions. The negotiation involves discussing the
problems and view points of both the parties and finally coming to an ultimate solution. It
is very flexible method of dispute resolution as it does not involve intervention of any
third party which can sometimes create problems.
 Arbitration: Arbitration is another form of alternative dispute resolution where the
dispute is resolves by mutually elected individual called arbitrator. The arbitration
process is confidential and it respects the privacy of both the parties. It is important that
an arbitrator must have complete knowledge about the laws and evidence.
 Mediation: Mediation as the name suggests is an attempt two solve disputes between the
two parties peacefully through the intervention of a mutual person or party. The process
is voluntary done by a third party that is unbiased and aims to resolve the disputes. The
mediator listens two both the parties equally, explore alternative course of solution and
finally guides them to a common area of settlement.

The best procedure to solve the dispute between the Kango and IT supplier can be done by
appointing and arbitrator. The arbitrator can help in resolving disputes systematically between
both the parties and can keep them confidential as well. An arbitrator is a professional person
and is made by the body of law of United Kingdom. Thus, it is the most suitable method for
Kango company as it would keep things confidential and would not hamper the image of the
business(Singer, 2018).
CONCLUSION
From the above report it can be concluded, that Kango is a UK based food delivery
company and it is imperative for them to follow the legal laws and regulations if the business
wishes to operate without any government intervention. The company had been part of various
disputes with its IT supplier and also had the charges of breaching the law by wearing the self
employed people their company's uniform. As a result, it became necessary for the Kango to
communicate its employees about different legislations related to their field of business and in
order to solve the dispute the company adopted an Arbitrator as they are unbiased and
professionals when it comes to settling disputes.

REFERENCES
Books and journals
Aronson, R.L., 2019. Self employment: A labor market perspective. Cornell University Press.
Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
Blake, S.H., Browne, J. and Sime, S., 2016. A practical approach to alternative dispute
resolution. Oxford University Press.
Marshall, G., 2016. What is binding in a precedent. In Interpreting precedents (pp. 503-517).
Routledge.
Nedzel, N.E., 2019. The growth of the English rule of law. Center for the History of Political
Economy at Duke University Working Paper Series, 3.
Nyoni, E. and Hart, T., 2018. The Concept of Limited Liability and the Plight of Creditors
within Corporate Governance and Company Law: A UK Perspective. InterEU law east:
journal for the international and european law, economics and market
integrations, 5(2), pp.309-322.
Prassl, J., 2017. Pimlico Plumbers, Uber Drivers, Cycle Couriers, and Court Translators: Who is
a Worker?.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal
system. Routledge.
Skinner, G., 2015. Rethinking Limited Liability of Parent Corporations for Foreign Subsidiaries'
Violations of International Human Rights Law. Wash. & Lee L. Rev., 72, p.1769.
Taylor, S. and Emir, A., 2015. Employment law: an introduction. Oxford University Press, UK.
Travis, A., 2019. The Organization of Neglect: Limited Liability Companies and Housing
Disinvestment. American Sociological Review, 84(1), pp.142-170.
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