Legal Report: Employment Law & Workplace Issues at Chia Limited

This report examines the legal issues facing Chia Limited, a vegan food company, focusing on employment contracts, equal pay, and workplace safety. The first question addresses the lack of a formal written employment contract for a new secretary, Dwayne, and the legal implications under the Contract Act 1990 and the Employment Act 1996. The second question highlights potential gender discrimination, as Sonia is paid less than her male colleagues despite having similar experience, violating the Equality Act 2010 and Equal Pay Act 1970. The report concludes by emphasizing the employer's responsibility to provide equal opportunities and fair remuneration. Desklib offers a wealth of similar solved assignments and resources for students.

Law for Business Managers
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Table of Contents
Introduction................................................................................................................................3
Question 1..................................................................................................................................4
Question 2..................................................................................................................................7
Question 3..................................................................................................................................9
Conclusion................................................................................................................................12
References................................................................................................................................13
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Introduction
The role of a business manager is very crucial for the growth and development of the
organization. The management of the organization remains in the hands of the business
manager, where he takes very crucial decisions for the benefit of the organization. The above
report reflects the poor decision making made by the managers working in Chia limited. The
report also reflects the importance of the contract of employment for both the employer and
the employee working for the company. The report also focuses on the equal opportunities
for all the employees working in the organization irrespective of race, religion, colour or
gender. The provisions of the Equality Act 1970 and the Equal Pay Act 2010 are also
discussed in the report. In the end, the provision of Health and Safety Regulation at Work
Act 1972, regarding the poor conditions in the workplace were the employees of the
organization feel unsafe to work in such an organization.
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Question 1
Issue
Chia limited a company founded by Mr Joseph, which deals in vegan food and snacks. The
company hired a new secretary who handles most of the matters of the company. Dwayne has
been working in the company for the past 6 weeks and there has been no formal written
employment contract made between the parties. However, a verbal contract has been made
between the company and Dwayne for the position of secretary of the company. The parties
do not have a written contract, a written contract of employment between the parties is
necessary in order to avoid conflicts in the future.
Rule
As per the Contract Act 1990, a contract is a document which legally binds the parties
entered into a contract to perform a certain work in exchange for a certain amount of money.
A contract can be verbal and written. A contract, in other words, in other words, is a body of
law which binds to the parties to the contract regarding the contractual obligations and
validity of the contract (Sanders and Countouris, 2016). A contract is formed on the basis of
the offer made by the party in exchange for some consideration. The obligation of the
contract must be purely legal and there must be an intention to create a legal relationship with
parties entering into the contract. A contract becomes enforceable when there is an offer and
consideration has been made by the party offering which has been duly accepted by the party
than the contract becomes enforceable. A contract can also become enforceable when the
offer is made by the words or conduct is duly acceptable by the party. Any mistake or
misunderstanding can prove a contract void in the court of law. The contract made between
the parties should be legal in nature and the intention of the parties should create a legal
relationship with each other. A contract can be proved void in the court of law if its
provisions are illegal in nature.
As per the Employment Act 1996, a contract of employment should be provided to the
employee within 2 two months from the date of employment. Such an act was formed in
order to protect the rights of both the employer and the employee. The act also focuses on
providing a healthy and safe environment for the employees working in the organization.
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Employers should not only focus on creating profit but they should also focus on providing a
safe environment for the workers (Freedland, et. al., 2016).
The contract of employment should include all the terms and conditions which are necessary
for an employee in order to pursue the role in the organization. The contract of employment
should also include the amount of consideration in the form of salary and the designation
where the employee is going to work under. The contract of employment can be proved void
in the court of law if there is any mistake or misunderstanding in the contract for employment
(Grimshaw, et. al., 2017). A contract for employment is written in nature and should be made
available to the employee within 2 months from the date of joining. Such a document of
contracts proves the employer-employee relationship and also provides a legal basis and
evidential basis for the employment. If any of the party breaches the contract than the
plaintiff party has the right to apply for the right to damages in the court of law.
Analysis
As per the Contract Act 1990, there has been a verbal contract between Mr Joseph and
Dwayne for the position of secretary in the company. All the terms and conditions were duly
discussed as Dwayne has been working in the company for the past 6 weeks. Such a contract
can be proved voidable in the court of law if there has been any misunderstanding between
the parties (Freedland, et al., 2016). A contract may be deemed enforceable only if the terms
and conditions are clearly made between the parties to contract which are duly accepted
between the parties to contract. If there is no consensus between the parties regarding the
terms and conditions of the contract that such contract can be proved void in the court of law.
As per the latest case law between Addison Lee Limited Vs Gascoigne where it was held
that the employee was treated as self-employed while working in such organisation which led
to conflicts between the parties which led to a judgement in court regarding the importance of
written employment contract should be given within a period of 2 months from the date of
employment.
As per the Employment Act 1996, it is the duty of Chia Limited to provide a written contract
of employment to Dwayne within the period of 2 months. Dwayne also has the right to
demand the contract of employment from the company. Such a contract should clearly
mention all the terms and conditions and the contract should also include the designation for
which Dwayne is working in the organization along with his the salary structure. It must be
ensured that the contract of employment should be made available to the employee working
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in the organization for a period of 2 months. The contract of employment is the legal basis for
the employer-employee relationship.
Conclusion
The above case shows that there was no written contract for employment made between the
parties. In absence of such a written contract for employment, there might be some chances
of misunderstanding between the parties which could lead to disputes between the parties.
The employer of the company has to provide a contract of employment to the employee
within the period of 2 months from the date of employment. Such contract of employment
proves employer-employee relationship on the legal basis. Dwayne has the right to demand a
contract of employment from Mr Joseph, which should clearly indicate all the terms and
conditions of the employment and the contract should also provide clear information
regarding the designation of Dwayne as well as the salary structure of Dwayne. Such contract
of employment between Dwayne Mr Joseph will prove employer-employee relationship on a
legal basis. In case of a contract of employment, if there is any misunderstanding or any
mistake has been made in the contract that such contract can be proved voidable in the court
of law.
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Question 2
Issue
Chia Limited has employed three employees named Sonia, Samuel, and Simon of the same
age and with the same level of experience in the organization. They all are working in the
accounts department of the company where Sonia is being paid at the rate of £ 7 per hour
whereas Simon and Samuel were being paid £ 10 per hour. Sonia has been underpaid with the
same level of experience and knowledge and also working in the same department of the
company.
Rule
As per the Equality Act 2010 and Equal Pay Act 1970, it is the duty of the employer to
provide equal opportunities to the employees working in the organization. This act prohibits
the employees to make any discrimination of the basis of caste, race, colour or gender. This
act binds the employer to provide equal opportunities to all the employees at work. The
employee should not only focus on providing equal opportunities to its employers but he
should also provide equal remuneration to its employees irrespective of caste, sex, colour or
religion. This act also protects the right of the women at workplace, where the women are
granted with the maternity leave during the days for her motherhood (Conley, 2014). The
government of United Kingdom has also initiated various laws in order to promote equality in
the work environment, the laws such as Sex Discrimination Act 1975, Race Relations Act
1976, Disability Discrimination Act 1995, Employment Equality (Religion or Belief)
Regulations 2003, Employment Equality (Sexual Orientation) Regulations 2003 and
the Employment Equality (Age) Regulations 2006 are initiated by the government in order
to prevent discrimination on the basis race, religion, colour or sex at the workplace.
As per the Employment Act 1996, every employee working in an organization should be
given a written contract of employment which should state all the terms and conditions for
the employee working in an organization. Such a contract should also include the salary
structure of the employee; the salary structure of the employee should be made on the basis of
equality irrespective of its race, religion, colour or sex. This act binds the employee to
provide equal opportunities to every employee working in the organization.
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Analysis
As per the Equality Act 2010 and the Equal Pay Act 1970, there has been a clear
discrimination made by the Chia Limited on the basis of gender. The company is paying
Simon and Samuel at the rate of pay £ 10 per hour and Sonia is being paid at the rate of £ 7
per hour. All of the three employees working in the accounts department are carrying the
same level of experience and skills in the organization. Sonia has the right to file a petition in
the court seeking an injunction for a raise in her pay. The employer of the company is bound
to provide equal opportunities along with the equal pay at the workplace. The company can
avoid certain legal charges by increasing the per hour rate to £ 10 per hour which is equal to
other employees working in the same department of the company. As per the case law
Jessemy Vs Rowstock Limited it has been held that it is the duty of the employer to provide
equal opportunities to the employee working in the organization. Apart from providing the
equal opportunities to the employees, the employer is also liable for providing equal
remuneration to the employees working in the organization.
As per the Employment Act 1996, it is the duty of the employer of the company to provide a
contract for employment where all terms and conditions of the employment are mentioned.
The company shall also include the salary structure of the employee and the contract should
also provide the designation for which the employee is working for. The contract should
include a clause of equal opportunities for the employees working in the organization. Sonia
on the basis of the contract of employment can apply for the charge of discrimination in the
court of law; as a result, the company might have to face such charges.
Conclusion
The above case shows that the company Chia Limited has been doing discrimination on the
basis of gender. Such an activity is restricted under the Equality Act 2010 and the Equal Pay
Act 1970, the employer of the company is bound to provide equal opportunities and equal
remuneration to the employees working in their company. If such activity is being pursued in
the organization than the victim employee can apply for suit against the company seeking
raise in the remuneration of the employee along with providing equal opportunities to the
employee.
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Question 3
Issue – As per the conditions mentioned it can be clearly made out that condition of the
factory does not go down well with the laws related to health and safety in the U.K. Joseph
can be held for violating the law and not complying with the law. There is also a lack of
proper Health and Safety policy for the employees in the factory.
Rule
The Health and Safety at work act 1974, is the Magna Carta when it comes to the
occupational health and safety in the United Kingdom. Regulations under this act are called
as ‘The Six Pack’ Regulations which legally covers every aspect of the health and safety of a
Workplace (Demeritt, et. al., 2015). In the present case following regulations are violated:
o Provisions and use of work Equipment Regulation 1998
o Workplace (Health, Safety, and Welfare) Regulations 1992
o Personal Protective Equipment at Work Regulations 1992
Other than these Regulations there are certain duties of the employers are also mentioned:
o Duty to take care of the Health, Safety, and Welfare of all the people working for him.
o Safety and maintenance of the work systems.
o Duty to safeguard the use of various processes such as storage, handling, and
transport of substances.
o Duty to keep the employees informed and trained (Sargeant, 2016).
o Duty to provide a safe work environment and access
o Welfare Facilities.
o It is the Duty of the employer to have a proper written Health and Safety policy when
there are five or more people are working at the same time (Simple Sensible Safety,
2017).
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o Duty to protect the people who are not under employer’s employment but are only
affected by operations.
o Duty to establish a Safety Committee.
There can be two types of actions which can be taken against any person who violates any of
the regulations under section 33(1) (c) of the HSWA or duties under section 33(1) (a) of the
HSWA:
Civil Action: Under Civil Action for violation of the said regulations and duties, the offender
will be asked to pay compensation to the person who has suffered any sort of harm as a result
(Mills, 2016). The person who has suffered harm can also seek an order for Injunction as in
for the safety against future harm. Lower can impose fine up to £20k. A higher court can
impose an unlimited fine.
Criminal Action: Criminal action will result in Punishment i.e. State is allowed to punish
whoever has breached regulations and duties. It includes imprisonment - In Magistrate Court
up to 12 months and up to 2 years in Crown Court. Other than this the Tort of negligence will
also be committed as there is unreasonable carelessness and breach of duty to take care which
will result in damage and harm if not cured.
Analysis
According to the circumstances of the present case there may be following implications for
the factory owner for non-compliance with the provision of the Health and Safety at
Workplace Act (Holt, and Allen, 2015).
Firstly, the duty is to provide a safe working environment for the employees. The factory has
exposed wires and leaking machinery. There may be many consequences which may harm
the employee such as electric shock; employees may fall down because of the slippery floor
which can cause damage physically. Secondly, Lack of Fire extinguishers and fire safety door
at the factory.
Workplace (Health, Safety, and Welfare) Regulations 1992: There is no proper fire exit gate
in the factory which violates the provisions of the present regulations (Worksafe, 2018).
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Provision and Use of Work Equipment Regulations 1998: It deals with the maintenance and
security related to equipment. There is leaking machinery in the factory which urgently
requires repairing.
Health and Safety Information for Employees Regulations 1989: Under this regulation, the
employees can directly communicate their problems to the enforcing the authority (Wilson,
2016). As in the present case, the employees did report their problems to Joseph who happens
to be the owner of the factory. But even after numerous complaints, the problems were not
resolved which can be problematic for Joseph.
Thirdly, Absence of any Health and Safety Policy, as per the Health and Safety at Work Act
1974 duties of the employer include the duty to have Health and Safety policy if he has
employed five or more persons at such a place. The policy should include all the aspects
which are necessary for the protection and safeguard of the employees from various issues
and problems which may arise at the workplace. Hiles v South Gloucestershire NHS
Primary Care Trust, High CT, 2006, Here the employer was unable to ensure safety to the
employee resulting in her being in a mental stress and endangering her life. The employer
was held liable under the same Act (Shoponline, 2017).
Joseph will have to comply with the Act and the regulations for a positive working
environment at the company. If he doesn't then he will fall prey to the compensation or
punishments under the law (Cepero, 2014). It will be better for Joseph to repair the
machinery and have proper fire management system in the factory.
With regard to Health and safety policy, there are 20 employees employed by Joseph in his
factory. That means he is under an obligation to form the policy as soon as possible otherwise
that will be a direct violation of the duties of the employer under sec 3 of the HSWA 1974.
Joseph will be liable for both Civil and Criminal Action.
Action for damages can also be brought against him under the law of Tort for negligence. He
can be under fire for negligence as he is unable to take proper care and caution and there is
also a breach of duty on his part, a duty which he was expected to fulfil.
Conclusion
From studying the facts and law the duties of employer mentioned under the Health and
Safety at Work Act 1974 it is clear that it is mandatory for the employers to follow the
regulations otherwise action can be taken against him in both criminals as well civil nature.
An action under tort will also be maintainable for the compliance.
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Conclusion
The above project reflects a detailed analysis of various laws for the benefit of the employees
working in the different organization. Various laws such as Equality Act 197, Equal Pay Act
2010, Health and Safety Regulation at Work Act 1972, Contract Act 1990 and Employment
Act 1996 provisions have been discussed for the betterment of the employees working in the
companies. The report not only focuses on equal opportunities and remuneration of the
employees working in the various organizations but it also focuses on the health and safe
working environment for the employers. In the end, the report also provides a feedback to the
victims about their rights while working in the organization.
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References
 Cepero, I,. 2014. The Act that changed our working lives, Safety Management, July
 Conley, H., 2014. Trade unions, equal pay and the law in the UK. Economic and
Industrial Democracy, 35(2), pp.309-323.
 Demeritt, D., Rothstein, H., Beaussier, A.L. and Howard, M., 2015. Mobilizing risk:
explaining policy transfer in food and occupational safety regulation in the
UK. Environment and Planning A, 47(2), pp.373-391.
 Freedland, M., Bogg, A., Cabrelli, D., Collins, H., Countouris, N., Davies, A.C.L.,
Deakin, S. and Prassl, J. eds., 2016. The contract of employment. Oxford University
Press.
 Grimshaw, D., Johnson, M., Keizer, A. and Rubery, J., 2017. The governance of
employment protection in the UK: how the state and employers are undermining
decent standards. Myths of employment deregulation: how it neither creates jobs nor
reduces labour market segmentation, p.225.
 Holt, A.S.J. and Allen, J., 2015. Principles of health and safety at work. Routledge.
 Mills, C., 2016. Regulating health and safety in the British mining industries, 1800–
1914. Routledge. Naturalhr, 2018. What is Health and Safety at Work Act 1974. [Online] Available at:
https://www.naturalhr.com/blog/health-safety-work-act-1974 [Accessed : 21-8-2018]
 Sanders, A. and Countouris, N., 2016. Variation and suspension of the contract of
employment and its terms. Sargeant, M., 2016. Age discrimination in employment. Routledge. Shoponline, 2017. Health and Safety at Work etc Act 1974 explained. [Online]
Available at: https://www.shponline.co.uk/health-and-safety-at-work-1974/
[Accessed: 21-8-2018]
 Simple Sensible Safety, 2017. UK Health and Safety Legal Syste,. [Online] Available
at: http://simplesensiblesafety.co.uk/health-safety-2017/uk-health-and-safety-legal-
system/ [Accessed: 21-8-2018]
 Wilson, F.M., 2016. Women in management in the United Kingdom. In Women in
Management Worldwide (pp. 109-120). Gower.
 Worksafe, 2018. Health and Safety Legislation. [Online] Available at:
https://www.worksafe.uk.com/health-safety-law/ [Accessed: 21-8-2018]
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