This report examines the English legal system, analyzes the employment status of KANGO's couriers, explores different business organization types, and recommends ADR methods for resolving disputes with IT suppliers.
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The legal framework and Legal solutions
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INTRODUCTION The legal framework of the UK defines the laws and regulation that is applicable to businesses and to the public as well. The legal solutions are defined under the legal concepts of UK which gives authentic solutions to the commercial issues as well civil and criminal offences. In the present report the nature of English legal system is explains with defining branches and sources of law with the court structure in the UK to the staff of KANGO (K). The role of government in process of law making with application of common and statutory law is explained. Along with this the legal employment status of the couriers is determined. The K's management is presented with the details of different types of organisation which it can choose from. Furthermore, alternative dispute resolution methods are suggested in order to resolve a business dispute over the litigation process with IT suppliers. TASK 1 English legal system: The English legal system is the one of the oldest law of the world. The legal framework of the UK gets its content from the customs. But with its legalisation in 1689 the sources of law got expanded. The legal frameworks defines various statues, rules and regulation guiding the conduct of business as well as the people of UK. Branches of UK law: Criminal law:is that branch of the legal system of UK which deals with the cases of more serious natures this includes both summers and serious offences. The cases of criminal natures are robbery, rape, murder, sexual assault (Manyika and et.al., 2016). The criminal offences generally related to intent of incur serious bodily harm or killing another person. For such offences remedies are available as prosecution, life imprisonment ans fines. The capital punishment in the UK has been banned. Civil law:is that branch of law that deals with the cases of less serious nature. This deals with action of civil wrong done to a person by another or an organisation. The civil wrong means breach of contract, negligence, tort, breach of care of duty. The party who suffered with any of this facts can get a remedy under the civil court as compensation of the damages endured. Sources of Law: Common law:is the oldest source of law in UK where the decisions of earlier cases are referred by the court in the cases of similar subject matter before giving a ruling on the law suit. 1
This decisions must be followed by the lowers courts compulsorily as this get a binding effect through the doctrine of judicial precedent. All the lower court are required to follow the ruling passed by higher court. Act of parliament:is that source of law under which acts and statute law are preprepared by the parliaments through following the procedure to make a law(Gonçalves,2016). The acts are formed after getting approval form both the houses of parliaments and after that getting assent from the queen. No court can overrule or question an act and are required to followee the acts and statute law compulsorily without ant modification. Customs:is also an older source of law of English legal system. This can be explained as habits and behavioural practices of people which becomes a regular practised things over this the government sometimes make a law as this is a usual action in the public. The court stricture of UK: Tribunals:this is the first authority to here any matter, here the cases related with matter of asylum, criminal injury, compensation, social security, employment, child security. Magistrate courts:here the case of summery criminal offences are heard which are of less serious nature.The cases are related with gambling, betting, liqueur licensing which are heard by either a penal of 3 judges or a district judge. Crown court:This deals with criminal cases which are transferred from magistrate court. This includes rape, murder, sexual assault, robbery(Burtch, Carnahan and Greenwood, 2018). The case is heard by a jury and decision is passed by the judge. County court:This court deals with the matters of complicated nature which includes, claims for repayment of loan, breach of contract, mortgage, rent arrears, Here cases are heard by judge rather than a jury.In other words, it involves in dealing with problems or cases transferred from magistrate courts. Hence, example of such cases includes murder, rape and robbery etc. High court:Such court mainly hears or deals with more serious as well as complex civil and family cases/issues.This is divided into three division:- chancery, Family and Queen's Bench division. All theses division deals with different types of cases such as bankruptcy, business disputes, insolvency, company management, and disqualification of directors, intellectual property. Court of Appeal:It is recognized as senior court of England and Wales which handels mainly two areas such as criminal and civil.Hence, this is divided into two parts: civil and 2
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criminal. The civil division hears apples related with civil law and family justice from the high court, tribunals and specific cases from county court. Supreme court: this took place of house of Lords back in 2009 and hears the appeal from the high court. Here a penal of 5-9 justice of lords hears the appeal. Privy council:this is the final authority in UK to file an appeal either to the Queen or to the judicial committee. As this is final appellate authority no appeal form here lies to any other authority. (Source:The Judicial System of England and Wales A visitor’s guide, 2019) Steps to form a company in UK:For setting up company in UK following steps need to be undertaken such as: 3
At the first step, one needs to select a suitable company name pertaining to potential business Thereafter, business entity needs to specify company’s address In the third step, focus is placed in the appointment of director At this stage, details of company’s share need to be disclosed. On the basis of laws, business entity needs to specify at least one shareholder. Once all such formalities have been done then business entity requires to check SIC code As per the rules, written consent from shareholders need to be taken via memorandum and article of association Hence, by following the above mentioned process business entity can do registration of company. Parliamentary procedure to for a bill: A draft legislation approved from the cabinet minister is presented in the parliaments for getting approval. It can be presented in any of the houses of parliament and then a Royal assent is taken from the Monarch before converting the bill into law. The bill is first presented to the house of parliament through first reading. Here the title of the bill is read out loud and details are given on what the bill is and on what discussion is to be carried on (How does a bill become a law?,2018). After his bill goes to the second reading here voting is done over that weather the bill is be carried further or not. Form here the bill goes to the committee stage where the house committee discuss them in detail andmake changes in the bill(Hutchinson, 2018). From here bill is referred back to the house under report stage to undertake the debate and amendments made. At this stage again voting is done on continuation of the bill.After this comes the third stage where a small debate is one over the matters and changes done and final voting is done to pass the bill to other house of parliament. Form here bill goes to the other house where it goes to the same stages and if any changes are made it is referred back to the first house. After considering all the changes the bill is finally approved by both the houses get a formal approval from the Queen. With getting a Royal asset the bill get converted to a law. 4
(Source:How does a bill become a law,2018) TASK 2 The gig economy:concept can be defined as the as that markets whose operation flows under the free economy. Under this a business enters into a contract with an independent contractor for a limited time period and short term engagement(Kim, and et.al., 2015). The contract entered here is of temporary nature. The independent contractor carries out the work with his/her tools and equipments and on their terms and condition. They can hire someone else to do their work and they operate individually without any supervision from the employer. 5
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Pimlico Plumber v A Smith:case highlighted the terms and condition of individual contractors and defined their legal employment status.The decision of he case in 2018 clearly stated that self employer worker do not work as per the supervision of the employer and also they enjoy their rights of independent worker. But Smith used to work as per the supervision of pimlico and he carried identity, wore uniform, drove branded van with attached GPS tracker of the company. All these facts were considered by the court and Smith was declared to be employee of Pimlico plumbers. BasisIndependent contractorEmployee Tools and EquipmentThe self employed worker bring in own tolls and equipment to render the services. The employer provide material, equipment and machinery to carry out the employment services. Services by othersA self employed person can hire someone else to carry out the work. An employee can not hire anyone to render his /her services. SupervisionThe employer do not supervise the activities and operation and do not give instructions. The employer gives instructions as well as supervise the work of employee. Employment benefitsNo entitlement over pension, car facility and other benefits of the company. The employee have a right to enjoy the pension, car facility, canteens, sport club of the company. Other benefits under employment No entitlement over the holidays, medical, sick, maternity and paternity leaves. Eligible to all these benefits along with national minimum wages. Employments status of the couriers of KANGO: As per the given case scenarios the facts to the case are found as the couriers are required to ride the branded colored bicycles of K for delivering the meals to the costumers(Essential- 6
know-how, 2018). They are required to wear the uniform of the organization and had entered in to a written agreement with the company K(Askehave, 2017). Moreover they were instructed by the managements to informs the operations team of K before taking a leave and they have to tell this before 48 hoes of taking a leave. With putting all this factors together ti can be stated that K company had a great control over thecouriers who are working as independent contractors for the company. Moreover, with the case of piccolo it can be stated that the couriers were not providing the services on there terms and condition rather they were instructed by management of the K with giving them tool and machinery that is bicycle to perform their duty. Hence, the couriers are the employee of KANGO. TASK 3 Different types of business organisation present through which a business can start its operation: Sole trader:is the simplest and easiest form of starting a business as this does not require any legal obligation to be followed to start and run the business. This type of business is formed by a single person and the profits of business belongs to that person only.The liability of the owners in this business is unlimited as his/her personal assets can be sold to meet the business debt and liability. Partnership firm:is another form of business organisation that a person can choose to start a business. In this two or more person start the business together with bringing in the capital to fund the business start up and operating cost(Lee and et.al., 2016). The partner's liability is also unlimited in this business and the profits of the firm is distributed among the partners in pre decided ratio. This can be or cannot be registered under the gazelle framework. Company: is a the form of business organisation that is registered legally under the companies Act, 2006.it start this type of business huge funds are required. The liability of a directors and managers is limited as they and the company are tow distinct person under the eyes of law. This means company have its own assets and properties with personal obligations sand duties distinct from its directors and members. Limited company as a business solution to the KANGO: With registering the business as a limited company following advantage are available to it: the business will get a separate legal entity as with own assets and liabilities. The liability of directors and manager will get limited as they can not be held liable for the action of company. 7
Company have a legal right to sue and be sued under its name. Its have a rights to issue shares. The existence have nothing to do with the member coming in or leaving the company, it continues as perpetual succession. TASK 4 Alternative dispute resolution(ADR) The ADR can be explained as the legal remedy available to the parties to commercial dispute to resolve it without going to the courts. It s a technique providing out of court settlement to the disputes. This method provides effective solution to the dispute between the parties without going to the court. This process is less time consuming and is cheaper as compared to the litigation process. This is informal in nature which means that the partiers to the dispute can involve in the process of solving the problem unlike in the court proceeding the parties can not participate in the trials directly (Alternative dispute resolution (ADR),2018).The different method of ADR are: Arbitration:is the process in which a third impartial party is appointed as the arbitrators who decide upon the commercial dispute between the parties. The arbitration clause is present in the business contract and states that in case of dispute between the parties it will be referred to arbitration (Bachar and Hensler, 2017). The arbitrator considered all the facts and evidences from both sides and also hears out the stories from both the parties. With this an investigation is initiated by the arbitrator to identify the facts to the disputes. After all this he/she given an award which is binding on both the parties. Under the arbitration process the parties lose their right to appeal in the court against the award of arbitrator. Mediation:is the method where a third party is appointed as the mediators which is an unbiased person.The mediator here the facts and try to bring both parties to a point of discussion also that they can solve the issue without going to the court. This method of does not provide a decision through a third party rather both the parties come to a mutual decision with interference of a third party.The decision reached under this method can be made bound on parties by taking an order from the court over the decision making it binding to parties under dispute. Negotiation: is another method under ADR where there is no involvement of a third party rather parties sit together and negotiate over terms and condition to solve the dispute and 8
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reach to a mutual decision. Here, also the parties can make the decision bound through the order from court. KANGO can select from any of the above alternative to solve the dispute with its IT suppliers by saving the cost and time spend over the litigation process. CONCLUSION To conclude it can be stated that the English legal system is one of the legal framework of the world. The beaches of law have been identified as civil and criminal one and the highest authority in cost structure is the court of appeal. The sources of law are act of parliament, customs and the ruling of decided case laws. The couriers delivering meals to the customers of K have been recognised as employee of the business as they fulfil all the requirements to be worker. For this all the condition of employment was checked out and then status of the couriers have been clearly identified as employees of K. Furthermore, different types of business organisations have been explained as sole trades, partnership and company and K have been suggested to form a limited company. Moreover, various method of ADR have been explained to resolve the dispute with IT suppliers as arbitration, mediation and negotiation. 9
REFERENCES Books and Journals Manyika,Jandet.al.,2016.Independentwork:Choice,necessity,andthegig economy.McKinsey Global Institute. Burtch,G.,Carnahan,S.andGreenwood,B.N.,2018.Canyougigit?Anempirical examination of the gig economy and entrepreneurial activity.Management Science.64(12). pp.5497-5520. Hutchinson, K., 2018. The Story of Small Business. InLeadership and Small Business(pp. 11-3 Kim, J. and et.al., 2015. The contributions of firm innovativeness to customer value in purchasing behavior.Journal of product innovation management.32(2). pp.201-213. Askehave,I.,2017.AFunctionalInterpretationofCompanyBrochures-fromcontextto text.HERMES-Journal of Language and Communication in Business.(21). pp.199-203. Lee, C. K and et.al ., 2016. Selection and use of Alternative Dispute Resolution (ADR) in constructionprojects—Pastandfutureresearch.InternationalJournalofProject Management.34(3). pp.494-507. Bachar, G. J. and Hensler, D. R., 2017. Does Alternative Dispute Resolution Facilitate Prejudice and Bias: We Still Don't Know.SMUL Rev.70. p.817. Gonçalves, M. C., 2016. Alternative Dispute Resolution in Civil and Commercial Matters in the EU. InInterdisciplinary Perspectives on Contemporary Conflict Resolution.(pp. 111-127). IGI Global. Online Howdoesabillbecomealaw?.2018.[Online].Available through:<https://www.parliament.uk/about/how/laws/passage-bill/>. The Judicial System of England and Wales A visitor’s guide. 2019. [Online]. Available through: <https://www.judiciary.uk/wp-content/uploads/2016/05/international-visitors-guide- 10a.pdf>. Alternativedisputeresolution(ADR).2018.[Online].Available through:<https://uk.practicallaw.thomsonreuters.com/0-107-6391? transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1> . 10