UK Employment Law and Formation of Company in UK

This report discusses the historical structure of UK Employment Law and its features, including the rights and obligations of employers and employees. It also covers the fundamental features of forming a company in the UK, including constitutional documents, company name, registered office, first officers, statement of capital, and persons with significant control. Subject: Business Law, Course Code: N/A, Course Name: N/A, College/University: N/A

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discuss the broad historical structure of UK Employment Law and indicate who you think
UK Employment Law favours – either employers or employees ..............................................3
Task 2-.............................................................................................................................................5
Discuss the fundamental features of the formation of the Company in the UK .......................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law of the United Kingdom laid down the rules and regulation which regulate
the trade and commercialism. It includes all the laws related to business such as employment
law, intellectual property rights law, contract law etc. All the laws laid down several procedures
in regard to complete the transactions of the business. It also mentions the rights and the
obligations of the employer and the employees during the transaction of the business. It is also
known as mercantile law. Further it includes international provisions regarding the business
law,agreements and the section of government which deals with the mercantile law. There are
various international conventions who is dealing with international commerce and trade among
the countries. In this report, it discuss about the employment law of United Kingdom. Further,
this paper also discussing about the fundamentals of forming a company in UK.
MAIN BODY
Task 1-
Discuss the broad historical structure of UK Employment Law and indicate who you think UK
Employment Law favours – either employers or employees .
The United Kingdom's employment law has discussed about the relationship among the
employer and the employee's. These laws of the country ensures to provide healthier working
environment to the workers of the company(Aylott, 2022). It also mentioned the remedies in case
of breach of contract. It is essential as it guarantee the rights of both the employee's and the
employer of the organisation. If these laws doesn't exit, then there would not be any clear line for
boundaries on the actions of the employer and the employee's.
The employment laws of United Kingdom covers all these aspects such as Employee's
disability,exploitation and bullying, discrimination related to religion, caste, sex, colour,
etc. ,Employment contract, Paid holidays, Equal payment for equal working, Minimum wages
payment to workers, Paternity leave,Leaves for sickness etc. All the mentioned aspects has been
discussed under the employment law of the United Kingdom. It is mandatory to follow by both
the employers and the employees. In addition, any violation of the provisions of mentioned laws
then there are particular provisions for the punishments for those who violate the employment
laws(Claessens,and Ueda, 2020).

Some essentials of employment law are as follows-
 Employment Rights Act, 1996- It is an update of the older law and in this law the rights
of the workers of the company has been mentioned. In this act, the rights of the
employees has been laid down in case they has been dismissed, unlawfully dismissed, if
the employers doesn't grant them maternity leave as well as paternity leave and
redundancy.
 National Minimum Wage Act, 1998- This act ensures that the employees of the
organization has be paid a minimum wage which is decided by the relevant authority and
revised time to time in accordance with the inflation rate of the country. The is a
particular method from which they decide that the employees of the nation has been paid
minimum wages or not. All the employers has to maintain a data which shows that they
have their employees minimum wage that has been mentioned by the government of the
nations(Cook, 2021).
 The Maternity and Parental Leave, etc. Regulations, 1999- In this act,it mentioned
that the females employees of the organisation is eligible for the maternity leave. Also
this act laid down the provisions regarding paid leaves is the situation when the
employee's taking care of their parents when they fall sick. According to this act the
employers has responsibility to grant paid leaves to those women who is pregnant and to
those individual who is taking care of their sick parents.
 Employment's Relations Act, 1999- This act establishes several rights at work related
to recognition of trade unions as well as de-recognition etc. It describes the relationship
of the employer and the employee's in the organisation. Act has has laid down the duties
and rights of employers in every scenario (Davies, 2020). Further this act contains
important provisions in regard of maintain healthy relationship among the employer and
the employee's. It also mentioned the duties and rights of employer and employee's.
 Part time Workers ( Prevention of less favourable Treatment) Regulations Act,
2000- The labour law of the United Kingdom has mentioned that the employers have to
give similar treatment to part time employees as they treat their full time employees who
is engage in the same position. This act is make sure that no discrimination should be
take place on the basis part time and the full time workers. Generally, it has been

observed that the worker who is engaged in the same kind of work has been paid less salary
compare to the full time employee's.
 Transfer of Undertakings ( Protection of employment) Regulations, 2006- This
regulations has protect the employees rights in case of business in transferring from one
to another for e.g., in case a larger entity is acquiring the smaller entity, in that scenario
this regulations can protect the employees who have concerned regarding their job
security (Freedman, 2020). The prime aim of this regulation is to protect the employees
rights and their contracts of employment's in course of business transfer.
 The Equality Act, 2010- It is the act that prohibit the discrimination on the workplace
and in the process of recruitment. It includes few grounds of discrimination such as sex,
nationality of the individual, case,race, gender etc. It is the duty of the employer to take
care that at the in course of the employment any kind of discrimination must not take
place. All the duties and the responsibilities has been mentioned under this act and if any
one violates the provision than they will also beheld liable in accordance with the
provisions the act.
So, in the United Kingdom the employment law do not favour anyone like employers and the
employee's. But on the other hand the law only provides provisions which will help in running
the business in a smooth manner with the effort of both them such as employer and the employee
of the organisation(Lockton, and Brown, 2020). Basically the act prescribes the rights and
responsibilities for both of them.
This is because there are many provisions for dismissal which give power to employer for
dismissing the worker for just and legal reasons. On same side, this will also prohibit the worker
for unfair dismissal. In such a way, this also give some powers to worker such as unfair dismissal
in which they get justice in the court of UK. The law of employment also provides the duties and
benefits for both employees and employers.
Task 2-
Discuss the fundamental features of the formation of the Company in the UK .
The process of formation of a legal organization and registered it as a limited company.
This procedure can be done after filling an online form within three to six working hours. For

incorporate in the companies act 2006, a company has to be converted into the individual entity
which is entirely distinctive from their owners and accountable for their own liabilities and
finances(Ryzhikh, Toropova, and Tunkina, 2021). A organisation must enter into a contract with
their own name, takes possession of asset and safeguard the finance of the owner in form of
organisation. In the United Kingdom the registrar of the companies is The companies House and
they have their operation in three jurisdictions Scotland,Northern Ireland and England and
Wales. The prime characteristics of the organization are:
1. Constitutional documents- These are the documents which govern the company and
contain of the following:
 The memorandum of association- A brief paper which confirms subscribers intentions
for creating a organisation and becoming a member of the organisation to incorporation.
It is legal document which has been signed by all the initial guarantors or stakeholders
who are agreeing to form a company.
 The articles of association- It is the organisational principle constitutional document. It
must contains all the details regarding the managerial provisions of the organisation
activity agreed by their members. It laid down rule and regulations to how the decisions
should be taken by the all members and the directors related to various issues in relation
with shares, meetings of the members, appointment, directors power, resolutions of the
board and notices, assist in ensuring that the business of the organisation operates
smoothly and efficiently. The company can either select a form of model article which is
defined by the Statute or to choose own Bespoke Articles.
2. Company name
A private limited company of UK may select any name provided that:
 it must be distinctive: Name of the company must not be identical to any other
organisation, must be different from the other organisation on the index of the company.
 it doesn't contain a sensitive word or expression: In that condition you would require
approval from the secretary of the state or any other institution. What would be
considered as a sensitive word or expression? It would be considered those ones that
implies national pre-eminence, patronage of government, status of business
representative.
 Any words cannot be used which have any connection with royalty

 Name must not include certain characters, mark, symbols: Those which is outside the
alphabet and number series and punctuation are prohibited.
 Name should not be offensive to anybody.
 the name of the organisation must ends with 'Limited' or Ltd'
3. Registered office
In the United Kingdom all the private limited organization should have their physical.
This will be the address on which all the official communication will be sent, like agreements
from the companies house and HM revenue and customs.
The address of the office will be available publicly on their websites and the locations where the
general public can check their statutory organisation , until the organisation adopts a single
alternative inspection location.
4. First officers
Following are consist as a First Officers :
 Directors
All the private limited company should have appointed at least one director who must be
a living individual should be at least 16 years of age and not be disqualified from being
appointed as a director.
Generally, the Article of Association contains all the provisions related to how the
directors must manage the organisation affairs and how the directors should exercising their
power, accordingly with their fiduciary, common law and statutory duties(Zou, M., 2018).
To take action for the United Kingdom based company the directors should not
compulsorily resident of the nation. In the time of incorporation, the directors name and the their
permanent residential address should be filed at the companies house.
 Company secretary
The statute has mentioned that the administrative functions and duties of the secretary of
the company but it is not compulsory for the private institution to appoint the company secretary
unless the Article of Association has expressly mention. They can be individual or corporation.
5. Statement of capital
This statements conveys the in depth details of the shares structure and the values of the
organisation. It can consist of several classes of shares like voting rights, rights of dividend,

rights of capital and rights of redemption. These all are mentioned in details in the article of the
association of the company.
6. Persons with significant control
Any individual who holds the significant control, they should be registered at the
incorporation. It provides the clarity and transparency to the people that who owner of the
companies of United Kingdom. This helps in improving the firm behaviour, discourage the
money laundering and make liable those individuals who is hiding their ownership or control in
the company.
CONCLUSION
In the above paper, it is concluded that both the task named as United Kingdom
employment law and the fundamental features of the formation of the Company . This paper
summarises all the legislations which governs the employment of the nation. It further explains
the status of the law of the employments and it also elaborated unfair dismissal which is done by
the employer of the organisation. In addition, it explains the fundamental characteristics of the
creation of the organisation.

REFERENCES
Books and Journals
Aylott, E., 2022. Employment Law: A Practical Introduction (Vol. 21). Kogan Page Publishers.
Claessens, S. and Ueda, K., 2020. Basic employment protection, bargaining power, and
economic outcomes. Journal of Law, Finance, and Accounting, 5(2), pp.179-229.
Cook, T., 2021. The interface between employment law and enforcement, remedies and
sanctions. In Research Handbook on Intellectual Property and Employment Law (pp.
246-262). Edward Elgar Publishing.
Davies, P., 2020. Introduction to company law. Oxford University Press.
Freedman, J., 2020. Employment status, tax and the gig economy—improving the fit or making
the break?. King's Law Journal, 31(2), pp.194-214.
Lockton, D.J. and Brown, T., 2020. Employment Law. Bloomsbury Publishing.
Ryzhikh, A.Y., Toropova, A.A. and Tunkina, E.V., 2021. CORPORATE CULTURE IN THE
UK ORGANIZATIONS. In Потенциал российской экономики и инновационные
пути его реализации (pp. 202-204).
Zou, M., 2018. International and Comparative Employment Relations: National Regulation,
Global Challenges.