Question-   Contract and Employment Law


Overview of different laws:

A proper business grows with the help of different laws. These laws help them in determining every aspect of the business. Company law is related to the base of the company. It is updated by the Companies Act 1985 (Legislation, 2021). It helps in the formation of the company. All the details regarding the liabilities and protection of the shareholders and the directors can be referred from this law. This law includes references regarding insolvency in case of due payments and liquidation or bankruptcy.

Contract law is the act which deals with the signing of a contract, termination of the contract between the employer and the employees. It is basically in written format through which one of the parties takes into consideration the responsibilities of the other person (Legislation, 2021).

Employment law has a lot of acts that help to build the employer and employee relationship. It deals with the rights, health and safety, wages, holidays, discrimination, grievances, and equal pay-related issues of the employees (Legislation, 2021).


Case 1:

The Contract law and Employment law are made to keep a proper relationship between the employer and the employees and also to maintain the rights of the employee in the company. In this case, when the company was going through a financial crisis, Gordon agreed with the employer to forgo his salary for the years 2015, 2016, and 2017. However, the commission has been provided to him. Companies can not hold any employee’s salary as per the Employment Law. However, Gordon has already received benefits against the deduction of the wages that is the commission. Therefore, according to the law, his claim of the repayment of the deducted wages can not be entertained. There is another situation, where the company has overcome its financial crisis and has gained profit once again, thus, they would be able to pay the deducted wages. The case of (Oates v Consolidated Capital Services Ltd [2009]) can be taken as a reference in this. In this case, the company has taken remedial measures at the time of facing financial loss after giving the employees benefits against salary. However, the employees claimed their wages which were declined in the final judgement.

Case 2:

The Contract law helps in making a contract between any company and its employees or with any third parties. It deals with certain laws that help in preserving the rights of the other party when a contract is breached. In this case scenario, Janet asked for the help of Virgin Media to install the internet package along with the installation of the phone line. The engineer came for the installation. However, the engineer left without installing the phone line due to certain issues. Janet had to wait for 3 long weeks to get it installed after numerous calls and complaints. However, at the end of the month, the company issued the bill for the whole month including the 3 weeks. As per the Contract law, it can be considered as a breach of contract and thus Janet can decline to make the payment and can also make a complaint in consumer tribunal against the company.  In (Castle Constructions (Qld) Pty Ltd v Pourasad [2015]) case can be referred to in this context. In this case, the judgement was against the construction company as they have charged for the whole project including the disputed works done by them. The engineer failed to do his work properly and despite that, the company unethically charged the customer, which is a breach of law.



Case 3:

The Contract law helps in declaring the liabilities of the shareholders and directors in the company which is the base of the formation of the company. Blackhorse Limited, in this case, faced loss due to bad debt left by one of the largest customers of them. They could earn back their loss in the next few months, however, the cash flow reduced by a large number. Therefore, they are searching for different options that can be used to close their business. In order to stop this closure, there could be a few ways such as taking time to think upon the solutions, an agreement between the shareholder that could help in clearing the previous losses. The case of (BUILDING SERVICES BOARD and CRAMPHORN [2016]) can be taken as a reference here as in this case also the company wanted to close the company. However, many ways were suggested at first to stop the company from closing.



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