Clean Machine Ltd: Legal Responsibilities Report for Business Managers

This report provides a comprehensive analysis of various legal aspects concerning Clean Machine Ltd, a small business owned by Gemma. The report begins by outlining Gemma's roles and responsibilities as the sole proprietor and director, emphasizing the importance of adhering to the legislative co...Read More

Law for business
managers

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CASE 1: Legislative code of conduct for Clean Machine Ltd for follow..................................1
CASE 2: Policies associated with termination of Charanjit under the case of misconduct........1
CASE 3: Dispute resolution between Clean Machine Ltd and Precious Time Ltd....................1
CONCLUSION ...............................................................................................................................1
.........................................................................................................................................................2

INTRODUCTION
This report revolves around Gemma, who is a sole proprietor of her organization named
Clean Machine Ltd. The organization is a small business situated in Bedfordshire. Following a
code of conduct and operating in accordance to he values and ethical framework is important for
the survival and operational contingency of any organization. This report will reflect on three
cases. The first one will revolve around developing an understanding of roles and responsibilities
that Gemma have to fulfil in order to play her role as the director of the organization. This unit
will also focus on the dynamics that Gemma have to take in to consideration while determining
the courses of action of activities. The second unit will revolve around Charanjit, who is an
employee in Clean Machine Ltd and is consistently inefficient in his work, even after many
warnings, therefore this report will focus on the ways that Gemma can go for in order to
terminate Charanjit while operating in the legal framework of the country. The report will also
focus on Precious Time Ltd who is a part of logistics of the organization and both of the
organizations have been facing constant disputes over the course of last few months and
therefore this report will also focus on the dispute management between the two organizations
without having to take legal actions.
MAIN BODY
CASE 1: Legislative code of conduct for Clean Machine Ltd for follow.
Gemma have to develop an understanding of theories associated with operations of any
organisation. Since Gemma is the sole proprietor of Clean Machine Ltd and therefore is
responsible for operations of the organisation. Gemma have to develop an understanding of the
her roles and responsibilities in associated with the organisation. Any organization have two
entities. The organisation is not an extension of the owner's identity. An organisation needs to
haver their own common seal and therefore have an artificial identity in the marketplace they
operate within. Gemma have to understand that an organisation also have perpetual succession
which means that the owners of the organization may come and go but the organisation will exist
forever. An organisation needs to follow many many pre-determined set of protocols which are
set and monitored in accordance to the Company Law 2006 (Abril, 2016). Gemma have to
understand her role in the organisation and how the organisation depends upon the director for
ethics and values. Gemma have to develop an understanding of the external dynamics as well so
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that the organisation is compatible with the external dynamics of the marketplace they operate
within. Taking in consideration the Company's law 2006, the responsibilities undertaken by
Gemma will be as follows:
 Taking in consideration that Gemma is sole proprietor of Clean Machine Ltd, she is
responsible for prioritising the overall goals of the organisation. In order to do so Gemma
have to develop the skill of emotional intelligence, where she can learn to keep her
personal interest aside and enhancing the overall reliability of the decision-making
process.
 Considering the fact that Gemma is the sole proprietor of the organisation, if Clean
Machine Ltd breaches any pre-determined legislative protocol, Gemma herself will be
considered guilty for the same as she is responsible for establishing the ethical code of
conduct of the organisation (Alfouzan, 2020).
 Gemma is also responsible for resolution of disputes that occur within the organisation
itself.
 Gemma should also be well aware about the employee protection act, which revolves
around well-being of their employees making sure that no employee is being exploited.
 Another role that the director of an organisation have to follow is to have transparency in
the operations of an organisation (Crouch 2017). The book keeping and tax paying is
done in a manner that can be made public at any given point of time.
 Any organisation is just an extension of society's will and wants and therefore the
director of an organisation is responsible for making sure that all the duties are fulfilled.
These duties include social responsibilities, personal responsibilities and environmental
responsibilities.
 Gemma herself should be well aware about all these duties of the directors in order to
ensure a fluency and efficiency in the Clean Machine Ltd's operations making sure that
their operational course of actions are in accordance to the legal structure of
Bedfordshire (Allen, Kraakman and Subramanian, 2016).
 Gemma is responsible for the continuity of her business and therefore she have to
develop an understanding of the legislative code of conduct of the marketplace in which
the organization operated within. Gemma have to understand all the environments which
are political, economical, social, technological, environmental and legal conventions of
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the marketplace. The political environment focuses on the stability in the political
operations and the values associated with it. A business is just an extension of society's
will and wants because it works for them and therefore the ethical values associated with
the society and their status is also to be followed. UK government is strict about their
environmental policies in order to make sure that any organization is not causing harm to
the environment in which they exist and in addition to that the organization have to make
sure that they are putting efforts in association with conserving and enhancing the health
of the environment in which they are situated. (Charkoudian, Eisenberg and Walter,
2019). Gemma is also responsible for using active monitoring techniques and finding the
best course of action related to acquisition of needed technologies. Gemma needs to have
an understanding of legal conventions and have to establish their operational code of
conduct accordingly. Growing economy of UK offers limitless opportunities to Gemma
and the organization and therefore, an understanding of the recession in Global markets
and their how they can effect the operational efficiency of the organization in order to
mitigate the threats arising due to uncertainties in the economy.
CASE 2: Policies associated with termination of Charanjit under the case of misconduct.
Case scenario
Gemma have employed Charanjit as the cleaner for her company Clean Machine
Limited. It is observed by Gemme that he is regularly late for the work and his attitude is also
poor not only towards her but also towards other employees. Gemme has to oversee the work of
Charanjit regularly and remind him to clean all areas properly. She now wants to terminate
Charanjit's contract of employment.
Legislation relating to termination of employment contract
According to the Employment Rights Act of 1996, employer and employee must stick to
the contract until and unless it is ended or until the terms of the contract are changed. It is a legal
requirement that all employees must have a contract for employment. It is that contract which
states the rights, responsibilities, duties and conditions of the employment (Goldberg and
Wilkinson, 2019).
An employer may dismiss the employee and end the contract of employment. In order to
dismiss the employee, the employer is bound to send the notice of dismissal to the employee. If
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the employer dismisses the employee, the employer should show that it has a valid reason to
dismiss the employee and have acted reasonably in the circumstances.
There are many grounds on which the contract of employment can be terminated which
involves the following-
 Notice is given either by the employer or the employee to terminate the contract of
employment.
 There is a mutual agreement between the employer and employee that employment
contract must be terminated after specific time period or completion of specific purpose.
 On the expiry of the fixed term of contract as it automatically gets terminated without the
need of the notice.
 The employer can also terminate the contract of employment if the employee have
breached the contract (Lee, Yiu and Cheung, 2016).
There are two rights on the termination of employment contract which the law of UK
provides. The first right is the statutory right which states that the employee cannot be dismissed
unfairly and second is the common right where an individual cannot be dismissed on the breach
of contract which is known as wrongful dismissal. In case, an employer have to dismiss an
employee, it can send the contractual notice to the employee by stating that it wishes to end the
employment relationship.
In the present case scenario, Gemma may terminate the employment contract of
Charanjit but it needs to be fair. Section 98 of the Employment Rights Act of 1996 provides two
stage test which tells whether the dismissal is fair or not. The two stage test is-
 the employer have to show that the reason for dismissing the employee is fair.
 The tribunal must notice that the employer have acted reasonably and fairly in a
circumstance when treating such reason as sufficient to dismiss the employee (Keay and
et. al., 2020).
The fair reasons for the dismissal are-
 employee's conduct is not adequate like he/she is regularly absent, dishonestly,
harassment, etc.
 the employee is not qualified or capable enough to perform the job role.
 The reason of the dismissal is justified as to the employee's position.
 Redundancy.
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 The employee cannot work or continue to work in the position without the restriction or
contravention which is imposed in the enactment.
The burden of prove to show that the reason is fair lies on the employer. The employee
have the right to get the notice for its dismissal of the minimum legal period. But the employer
have the right to dismiss the employee without giving the notice on the ground that the employee
have committed nay gross misconduct. It is normally an event which is so serous that the
employee cannot be allowed to continue the employment. For example theft or fraud.
The employer have the right to dismiss the employee if-
 if the employee is capable enough to perform the job role but is not willing to do it.
 The employee is not capable to perform the job role as per the required standard.
 Any misconduct is committed by employee (Clarkson and Miller, 2020).
In the current case, Charanjit is not performing its job role in an efficient manner and
Gemme has to continuously look after his work. This shows his willingly to not perform the job
role despite repeated warnings. So Gemme is entitled to dismiss Charanjit and terminate its
contract for employment.
CASE 3: Dispute resolution between Clean Machine Ltd and Precious Time Ltd.
Case scenario
Gemme entered into a contract with Precious Time Limited who supply materials to the
company. Recently, there have been many problems between the two companies. Gemme have
been suggested by her friends to take the matter to the court but she is not sure whether it is the
best way to move forward. Gemme wants to work with the precious Time Limited in the future.
Dispute resolutions
There is a dispute resolution mechanism called the litigation. It involves huge time and
cost and requires the person to visit the court on the date of hearing. It has a detailed procedure to
claim the remedies. Apart from this mechanism, there are many other alternate dispute resolution
which may be considered by the parties in order to solve the dispute (Pfaff, and Halsey, 2019).
The Civil procedure Rules of 1986 provides many alternate dispute resolutions which can
be adopted by the parties to solve their dispute in an easy manner as they are less time
consuming and involves less cost. These alternate dispute resolutions includes arbitration,
mediation, negotiation, conciliation, etc. It is a consensual process as requires consent of the
parties and the courts cannot compel any party to refer the case to such dispute resolution.
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Characteristics of alternate dispute resolutions
 The different alternate dispute resolutions are cost effective as compared to litigation and
also takes less time to resolve the dispute.
 There are many alternate dispute resolution like arbitration, conciliation, mediation,
negotiation and many other.
 The methods of ADR are confidential as it gives freedom to the parties to deal with their
sensitive issue privately.
 It works to preserve the future relationship of parties as it reaches the decision by the
consent of the parties.
 Some of the alternate dispute resolution like mediation is not binding which may result in
wastage of time and cost for the parties if parties does not obey the decision.
 The binding effect of arbitration, conciliation works as best alternate for the litigation
where the time and cost of the parties is saved and they have the decision in their hands
which have same relevancy as that of the court's decision.
In the present case study, Gemme may opt any of the alternate dispute resolution which
are discussed below in order to resolve the dispute between Clean Machine Limited and Precious
Time Limited-
Conciliation
This alternate dispute resolution is same as the mediation but the main difference
between the two is that in conciliation, a conciliator is appointed which can be in any number but
maximum up to 3 who tries to settle the dispute between the parties. The conciliator appointed is
independent and unbiased who help the parties to come to a settlement so that an amicable
solution is reached between the parties. In this process, the conciliator either suggest the parties
for the solution or parties bring their solution and to give a binding effect to it, the settlement is
signed which have the same relevancy as of the court's decision (Holloway and et. al., 2017).
Mediation
It is one of the most common and popular form of alternate dispute resolution. Under
this, an independent mediator is appointed who is entrusted with the role to give suggestion to
the parties so that they can resolve the dispute and come to a amicable solution. The main
objective of this resolution is to bring the solution and for this, the mediator continuously seeks
to take the opinion of the parties so that solution can be brought. The time and place of the
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mediation is agreed by the parties and they only nominate the mediator in order to collect
suggestion from it. The decision of mediator is not binding rather it works as suggestion for the
parties (Goldberg and Wilkinson, 2020).
Negotiation
This alternate resolution either took place orally or in written form. It is an informal
approach which takes place between the lawyers or the parties. The main purpose of this
resolution is to bring win win situation between the parties so that both parties get something and
no party looses anything. In this, a negotiator is appointed who works to bring friendly solution
between the parties. It is one of the quickest and cheapest way to solve the dispute. The decision
of negotiator is not binding until and unless the parties sign the agreement to make it binding
(Wen, 2016).
Arbitration
it is one of the most effective form of laternate dispute resolution in which an
indeoendnet arbitrator is appointed. It solve the dispute between the parties by hearing them and
after examing the evidence on record, pass an award which have a binding effect. The process of
arbitration is less time consuming and cheapest as compared to litigation. The parties decide the
time and place of arbitration and the fees is also paid collectively by the parties. The parties may
appoint any number of arbitrator but it must be in odd number. The parties are bound to follow
the decision of arbitrator and in case any party does not obey with the decision, the court may
intervene and pass an order to obey with the decision (Sprague, 2016).
In the current case scenario, Gemme may opt for arbitration to resolve its dispute with
Precious Time Limited as it is less time consuming and cost effective. This will help them to
save their goodwill and also allow them to solve their matter confidentially. The decision also
have a binding effect on the parties.
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CONCLUSION
The report concludes that there in order to ensure the contingency in operations for Clean
Machine Ltd Gemma have to develop an understanding about the theoretical framework
associated with the operation of an organization. She have to develop an understanding of
concepts like perceptual succession, legal and ethical structure for Gemma to follow, etc. This
report concludes that even after employment contract Gemma is authorized to terminate
Charanjit on the grounds of his inefficiency and consistency in disregards to contract of
employment from Charanjit's side. Gemma have to develop an understanding of dismissal
policies of Bedfordshire making sure that the dismissal of Charanjit is not wrong in any way. In
order to solve the disputes between Clean Machine Ltd and Precious Time Ltd Gemma have to
develop an understanding of the concept of ADR, which is an abbreviation for Alternate Dispute
Resolution techniques. These techniques are not only beneficial when it comes to resolution of
disputes but in addition to that these techniques also establishes an outline for development of
future relationship between the organisations.
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