Business Law Report: KANGO Courier Employment and IT Disputes

This report provides a comprehensive analysis of business law principles as applied to the fictional company, KANGO. It begins with an overview of the English legal system, including sources of law and the law-making process within the UK parliament. The report then examines the employment status of KANGO's couriers, applying relevant legislation and case law, specifically referencing the Pimlico Plumbers case, to determine whether they are employees or self-employed contractors. Following this, the report explores different types of business organizations, and advises Jay and Alex on the formation and registration of a limited company. Finally, the report addresses business issues faced by KANGO, presenting alternative dispute resolution (ADR) methods, such as arbitration, mediation, negotiation, and conciliation, that could be used to resolve disputes with its IT suppliers, offering potential solutions to the business problems.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Main principle of English leg system..........................................................................................3
Formation of law in UK..............................................................................................................3
TASK 2............................................................................................................................................4
Employment status of the couriers of KANGO..........................................................................4
TASK 3............................................................................................................................................5
Different types of business organisation.....................................................................................5
Formation and registration of limited company..........................................................................6
TASK 4............................................................................................................................................6
Presenting alternative solutions for the issues of K with its IT suppliers...................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is that division under the legal system of UK which depicts laws and statues
along with regulations and rule to conduct the operations of business in legal ways. In the
present report the English legal system is explained which includes the main principles of the
legal system and making of law which defines the sources of law for the English legal system
and how the laws are made under the parliament of UK. Along with this the employment status
of employee of KANGO (K) is identified with application of relevant rules, statute laws and the
case law of Pimlico Plumber. The formation of limited company of the business of K is
explained with presenting various forms of business organisation which are presented to Jay and
Alex to start their business. For the last section of the report alternative methods are presented to
resolve the business issue of K which can be used by KANGO to resolve their dispute with the
IT suppliers.
TASK 1
Main principle of English leg system
Sources of law:
Legislation: have two parts one is the act of parliament where statute laws are formed
through the parliamentary procedure by getting approval form both houses (house of common
and Lord) of parliament and Monarch as well. The second is delegated legislation where power
are given by parliament to local bodies and public authorities to make laws over specific matter
and for particular region.
Case laws: are the most old source of UK law in which laws are made through the
decision given for case law under the court (Allenand Blackham, 2018). The ruling of earlier
cases are required to referred in future law suit with similar subject matter. The decision of
previous cases gets a binding effect through the doctrine of judicial precedent.
EU directive: UK is still part of EU so the rules and laws formed for all member
countries of EU, applies to UK as well. In case of contradiction between EU ad UK laws the Eu
laws are followed over UK laws.
Formation of law in UK
A draft legislation is presented to the cabinet minters by the public authorities which is
referred as proposal. The proposal is required to be approved by the cabinet ministers before

presenting it to house of parliament. With getting the approval it becomes a bill and then it is
submitted to parliament for further proceedings.
A bill which is a draft law and approved by cabinet minister is presented to either one of
the house of parliament where title of bill is stated out in first reading. The bill is referred to
second reading where principles of bill are discusser in detail and voting is done. From here bill
goes to committee stage where detailed debate is carried on over each clause of bills and it is
scrutinised to make amendments. From her bill is sent to house in report stage where
amendments made are considered by house members and sent to third reading. In the third
reading final consideration of bill is done and voting is done to continue the bill to other house of
parliament. After this bill is sent to other house (house if Lords) where it goes through same
procedure and with approval from both houses final consent of queen it taken to convert the bill
into law.
TASK 2
Employment status of the couriers of KANGO
Self Employed:
A self employment person is that who does not work single employee they work with
more than employer on contract basis and receive payment for the work done (Rahman, 2018). A
self employed person is an independent contractor who pat taxes on his/her earning and do not
have employment contract they work as per their own terms and condition.
Employee:
An employee is an individual who works under employment of single employer for fixed
working hours and receives a periodical salary for the work done. Employee have employment
contract and works under supervision of employer. The employees have fixed working hours and
get all employment benefits including pension, bonus, leaves, holiday and sick pay.
Employment checklist:
Factors Self- Employed Employee
Salary and wages Yes payment for the work done
Supervision and control of
Employer
Yes NO

Employment contract yes no
Number of employer One More than one
Right to substitute others to
their work
no such right can sub contract the work
Right to employment
benefits
all rights available no rights
Right to terminate employer has such right can terminate contract in case
of breach
Tool and equipment to carry
out given work
provided by employer bring in by independent
contractor
Pimlico Plumber case: In this case a plumber working on independent basis claimed the
sick eave pays and other employment benefits. The court in this case decided the Plumber Smith
was employee of the Pimlico as he fulfilled all condition of being an employee. Smith have two
contracts with the company and a tight control was exercised over smith, he was required to wear
branded uniform, drive branded van of the company and contract was made in context of wages
and gross misconduc (Pimlico Plumbers Ltd v Smith, 2019)t. On basis of all these factors Smith
was held to be employed in Pimlico.
With above definitions, employment checklist and case of pimlico it can be seen that the
couriers of K are provided bicycle by K to deliver the parcels and were essentially required to
brand colour uniform of K. They are not allowed to take leaves and also they have employment
contract with K. All this conditions falls under the ambit of employee, hence, couriers of K are
determined to employees of organisation.
TASK 3
Various types of business formations
Sole trader: is that form of business which is owned and operated by a single person.
The funds are brought in by that person and he/she is wholly owns the business rights as well on
the profits of company. The business is not required to be registered.

Limited liability Partnership: is a form of business which is formed by two or more
than person who have come together to carry on the business together. They all share all the
responsibilities and bring in capita to start and operate the business. The profits earned by
business is distributed among the partners in the ratio they have decided in the partnership
contract and all of them pay persona tax on their earnings from business. The business profits are
not taxed and the liability of all partner is limited except one who is liable to pay the business
debt out of personal property.
Private limited company: is the one where a business is registered with the companies
house under provision of companies act 2006 as private limited company (Gelter,2016)(. In this
business the number of members is limited and the funds can not be raised form public by issue
of shares. The liability of members and directors are limited to the extent of investment in the
business, and profits of company are taxed at the rate of corporation tax. The company on getting
registration get a status of a legal person in eyes of law.
Public limited company: is also a form of company and the only distinction between
private and public limited company is that a public limited company can raise funds form public
by issuing them shares and in return pay dividend out of the profits of business when they occur.
All other provisions are same as of a private limited company.
Formation and registration of limited company
To register the business Jay and Alex are required to follow the following procedure:
The first step is to decide the mane of the company and its status, whether it is public or
private limited company. The company's name of must not be offensive and it shall not resemble
to a registered name. After selection of name it is required to submit certain document to the
companies house in accordance to sections companies act, 2006 which includes:
Memorandum of association :
As per section 8 Jay and Alex must subscribe to memorandum their names (Xu and
et.al., 2016). This document states the basic detail of business which are address and name of
registered office of company.
Article of association (section 9):
This document outlines regulations and rules of the company and it need not be complete
as Jay and Alex can follow model article under companies (model articles) regulations 2006.
Statement of shareholdings and capital:

As per section 9 and 10 the share capita and holding of shares is required to have minim
share capital. Such a both of owners can have a minim capital of 1 pound where each of them
take half of the share of 0.5 pound.
Statement of officers so proposed:
As per section 9 and 12 Jay and Alex are assumed to be first directors of business, for this
there address, name and consent over this, shall be stated under this statement. There is no
requirement to appoint a company secretory as this is private limited company.
Statement of compliance :
As per section 13 Jay and Alex must outline that all the requirements for registration have
been abided with and r can take this statement to the registrar as evidence of compliance.
TASK 4
Presenting alternative solutions for the issues of K with its IT suppliers
The Alternative dispute resolution (ADR) techniques are those where a dispute is not referred to
court for litigation and it done not includes any court litigation process rather it is an out of court
settlement technique. Alternative dispute resolution methods to resolve issues includes:
Arbitration: method is that one where a third impartial person is chosen as arbitrator and
that person here the case from both parties and take into consideration facts and evidence
presented by both on them. K can refer its case of arbitration as in this decision passed is binding
on both parties and there is no scope of filing an appeal against the order of arbitrator.
Mediation: is that method of ADR where the parties refer to a mediator (third impartial
party) who tries to bring both dispute parties to talking terms and try to settle the dispute between
them. The final decision is taken by parties mutual agreement and it can be made biding by
taking the order of court over decision (Olsen 2015)(. K can undergo under mediation as well
and reach to a mutual decision to the issues with IT suppliers.
Negotiation: methods in one where there is no involvement of third party. Parties to
dispute reach to taking terms and negotiates the terms and condition to solve the problem
between them. Both parties reach to a mutual decision and can take an order of court over the
final decision to make it binding on both parties. K can talk to IT suppers and both can negotiate
the terms of their dispute to solve it mutually.

Conciliation: is a voluntary proceeding under which parties involved agrees and make
an attempt to reach a resolution to their dispute by conciliation. Under this method the parties
have flexibility over deciding the time, structure and content of the conciliation proceedings. K
and its IT suppliers on their interest-base, can propose a settlement while taking into account
legal position as well as their financial, commercial and personal interest.
CONCLUSION
To conclude report it can be started that the main principles of the Legal system of UK
incudes the sources of laws which have been identified as case laws, act of parliament, and EU
directives. The employment designation of the couriers of K has been identified through the
employment checklist and Pimlico case as they were determined to employees of K. The various
forms of organisation types includes partnership , sole trader and limited company. A limited
company can be registered as per the rules and provision of Companies Act, 2006. Apart from
this the alternative dispute resolution methods to resolve the issue with IT suppliers have been
advised to K as arbitration, meditation and negotiation and conciliation. All of them have
different approach of solving the business dispute. Furthermore, it can be interpreted from the
above report that business the under the legal system of UK the laws has been made though the
act of parliament. The employment status of the employees have been determined as per the legal
laws and employment checklist as per provision of Employment protection act 1996.

REFERENCES
Books and Journals
Allen, D. and Blackham, A., 2018. Confidentiality and Settlement: Uncovering the Hidden
Secrets of the Enforcement of Equality Law in Australia and the UK.
Rahman, S., 2018. Changing Sustainability Norms through Communication Processes: The
Emergence of the Business and Human Rights Regime as Transnational Law. By Karin
Buhmann. Cheltenham, UK; Northampton, MA: Edward Elgar Publishing, 2017. Pp. xxiii, 384.
ISBN: 978-1-78643-164-6. US $160.00; UK£ 100.00. International Journal of Legal
Information. 46(3). pp.196-198.
Gelter, M., 2016. EU Law with the UK-EU Law without the UK. Fordham Int'l LJ, 40, p.1327.
Olsen, T. D., 2015. Law, Business and Human Rights: Bridging the Gap, edited by Robert C.
Bird, Daniel R. Cahoy and Jamie Darin Prenkert. Cheltenham, UK: Edward Elgar Press, 2014.
269 pp. ISBN: 978-1782546610. Business Ethics Quarterly. 25(4). pp.590-593.
Xu, M and et.al., 2016. E-Business Adoption in SME-Models and Determinants: A Comparative
Review of UK and KSA. In Encyclopedia of E-Commerce Development, Implementation, and
Management (pp. 453-469). IGI Global.
Online
Pimlico Plumbers Ltd v Smith. 2019. [Online]. Available through
:<https://www.supremecourt.uk/cases/uksc-2017-0053.html>.