Case Study: Employment Law Issues for ABC Ltd Software Company

This case study examines the employment law challenges faced by ABC Ltd, a software company with 250 employees. It delves into the legal risks associated with payment, dismissal, and health and safety, as outlined in the Employment Rights Act 1997. The analysis covers potential defenses available to ABC Ltd, such as legal agreements and training programs, and discusses the impact of employment relations on issues like payment structures, dismissal policies, and workplace health. The case study references relevant legal cases, such as Davison v. Kent Meters Ltd. and Woods v. Olympic Aluminium Company Ltd., to illustrate key principles. It emphasizes the importance of providing a safe working environment, fair compensation, and proper notice for dismissals to maintain positive employee relations and comply with employment law regulations. The study concludes by highlighting the significance of understanding employment law to protect both employer and employee rights and interests.

CASE STUDY

EXECUTIVE SUMMARY
Employment law governs roles and responsible ties of both employer and employee.
According to this act rights and liabilities are imposed on both parties which is neds to manage
by them in effective manner. Every company is responsible to follow rules, regulation and
policies which are mentioned under employment law.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
(A). Legal risks faced by ABC Ltd while taking course of action.........................................1
(B). Defences available for ABC Ltd.....................................................................................3
(C). Issues related to employment relation.............................................................................4
CONCLUSION................................................................................................................................5
RECOMMENDATION...................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Employment law is the legal term which is able to govern employer and employees’
relationship in effective manner. It can prevent discrimination also able to maintain health and
safety. Through this, employees are able to protect their rights and interest. Members are bound
to comply with mentioned policies which are imposed on them. The present report is based on
ABC Ltd. It is independent software producing company. Such software has been use to control
stock as well as accounting purposes. Around 250 employees are working in such firm. In this
report discussed about legal risk faced by ABC Ltd in taking course of action. Various defences
are available related to payment, dismissal, health and safety of employees.
(A). Legal risks faced by ABC Ltd while taking course of action.
There are various types of legal risks faced by ABC Ltd while performing functions related
to payment, dismissal and health and safety. Employers of this firm are responsible to provide
best working environment to existing employees in order to keep them for long time. As they are
bound to follow rules and policies which are imposed on them as per the provision of law. They
have to provide payment to workers equal to amount decided by them at the time of their
recruitment.
Legal risks:
Payment-
Section 13 to 27 of Employment Rights Act, 1997 consists several provisions related to
protection and secure them from unauthorised deductions from their specified salary amount.
According to this rule every employee is able to receive salary equal to amount mentioned under
legal document framed by employer and employee. For the purpose of this act, organization and
worker comes in contractual relationship with each other. They signed legal document with each
other on the basis of mutual consent. Various terms and conditions mentioned written document
which is needs to be fulfil by them. As both parties are responsible to fulfil rules and regulation
which are imposed on them. Unlawful deduction means employer deduct amount of employee
without any justified reason and not comply with rules and regulation. As the name implies,
unlawful deduction has been considered as wrongful act which is not enforceable by law. For
this reason, employees having rights to file case against employers in order to receive amount of
compensation equal to damages caused to them and specified mentioned under provision of law.
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ABC Ltd is responsible to pay amount as salary equal to provide to workers at the time of their
recruitment. Promised amount have to paid by firm for maintain performance in effective
manner.
Dismissal-
Issues related to performance has been considered as most difficult issues. As per the rule
of Employment Rights Act, 1997, employers are not able to dismiss employees on the basis of
their poor performance without giving notice to them. They have to frame legal notice and
mentioned reason of dismiss employees. Reason must be justified which is actually harmful for
the growth of company. Or employers can provide one-month advance salary to them in case of
immediate termination of person. In case company failed to do so then workers can file case
against them in order to receive amount of compensation equal to specified by law. as members
of firm are responsible to pay such amount.
Case: Davison v. Kent Meters Ltd. in this case Kent Meters Ltd dismissed Mrs. Davidson
because she delivered faulty components at work. On this she argued that instructor was not
provide warning to her. For this reason, employer provide one-month advance salary to her. But
Tribunal held that reason of dismissal is unreasonable. In this case notice has been issued without
provide her first or last warning for non-delivery of faulty goods.
Health-
In every organization of United Kingdom, health and safety is the most important factor
specially in software making firm like ABC Ltd. Employers are responsible to provide best
working environment to workers in order to attract, keep them for long time and maintain their
performance in effective manner. they are responsible to fulfil roles and responsibilities which
are imposed on them. Large number of advance technologies are used in ABC company which
may cause harm to the body of employees. So that, managers and leaders have to conduct
training session for them for the purpose of analyse working performance of employees and
enhance their skills or knowledge. Also higher authorities have to motive them towards work.
Employees of the firm are responsible to use their collective efforts for attain target and objective
within stipulated time period.
(B). Defences available for ABC Ltd
ABC Ltd faced various issues which are needs to be faced by its members in effective
manner. There are defences are available for this company in case members are not done
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wrongful act. Employer is responsible to deduct amount from wages of the person who done
wrongful act in company. But employer can deduct amount only if he having justified treason for
the same. In case person conduct act which is against policies of firm, then it should be
considered as wrongful act. Every person of the entity is responsible to follow rules, regulation
and policies which are imposed on them as per the provision of law. with the help of various
defences company can secure rights and interest and maintain performance in international
market. Due to this reason members of ABC can enhance work quality of entire firm and
maintain performance as well. Employers are also deducting the amount from wages of
employees if company reimburse the business in case of overpayment and due to strike. In the
present case scenario, ABC Ltd is able to defend itself on the basis of that it would enter into
legal agreements with the its large number of employees or workers that their payment of wages
or salary shall depend on 100 percent fulfilment of goals as well as that if failure to meet their
objective shall lead to deduction from their remuneration. Also organization spend huge amount
of money on the training and development session of employees. It is needs to be conducted for
the purpose of maintain their performance, work quality, skills and knowledge. With the help of
this process, entity is able to attain aims and objective within stipulated time period. The main
target of firm is to attract large number of customers and try to meet their level of expectation as
well. In the present, ABC can defend itself which is depending on present case law.
On the other side, the second course of action is depending on termination of employees
for the purpose of poor performance. In case worker done wrongful act then employer can
dismiss employees with providing notice in advance with justified reason.
Case: Woods v. Olympic Aluminium Company Ltd., in case scenario, Wood was the person
who was unfairly dismissed by Olympic Aluminium Company Ltd. Firm provide reason to her
that she was not able to perform her function in effective manner or she was not able to meet
expectation and requirement of business activities. She can contribute in drag down performance
of company in international market. In this case tribunal, held that company not able to dismiss
employee without any justified reason. Furthermore, in case company failed to do so then person
having rights to file case against firm in order to receive amount of compensation and maintain
performance in effective manner.
The third course of action, it can represent defence which ABC Ltd can take. Employers
have to provide best working environment to employees. They are bound to maintain health and
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safety of workers. They are having to adopt factors which is helpful to maintain wellbeing of
employees in order to keep motivate them and keep them for long time. Both employers and
employees having power to receive rights and interest. Available defences are related with case
facts as well as legal issues. Every member of the firm is responsible to frame various plans and
strategies in order to deal with issues. This is like as opportunity for attain continuous success. In
case ABC successfully attain its target and fulfil goals as well then members can easily meet
expectation of people and maintain performance as well. Through this, member found positive
result in future. Employment law consists various defence which are helpful for the companies.
So that, members can easily them to protect their rights and interest. But in case, tribunal held
that companies are responsible to for the wrongful act then they court can imposed penalties on
them equal to amount specified by law or damages caused to plaintiff. Also employers are try to
maintain effective relation with employees for the purpose of contribute in positive manner.
(C). Issues related to employment relation
Employment relationship is the key factor which is able to build link among employers and
employees. This factor needs to be exist at the time of selling and distribution of products and
services. The survival of an effective employment relationship is condition which helps in terms
of determination of application of labour laws in a firm. Employment Rights Act, 1997 provide
proper guidance to both employer and employees. As both parties are responsible to use these
laws which can maintain their performance in effective manner. As they are bound to fulfil the
same.
Impact on Employment relations:
Payment-
In the present case scenario, Mike has been deciding that activities related to payment of
workers should be completely based on commission. Amount of remuneration of workers should
be based on sales target of company. In case firm not able to meet minimum level of target then
employer only provide minimum wages as specified by legal authorities. This factor having
negative impact on the performance of employees. Through this concept, workers get
demotivated and not able to work quality functions allotted to them. For the purpose of motivate
employees, employers are responsible to provide incentives on the basis of their performance.
Due to this people try to use extra efforts and considered as helpful tool for continuous success.
Dismissal-
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On the basis of organization policies, Mike has been decided that poorest performing
members of sales department are dismissed each and every year. After that new employees are
needs to recruit in place of old workers. In case company wants to dismiss employee for any
justified reason then they have to provide one-month advance notice or on-month advance salary.
Notice needs to mentioned justified reason of removal of employee. In case firm failed to
provide the same then person can take legal action against entity in order to receive amount of
compensation which is mentioned under provision of law. Ultimately, employers have to
understand their feelings and maintain their performance as well. Managers and leaders are
responsible to conduct training session for them for the purpose of maintain their performance in
effective manner. The main objective of ABC Ltd is to attract large number of customers and try
to provide products and services in order to meet their level of expectation.
Health-
Every members of company are concerned about health and safety at work place.
Employers are responsible to provide best quality working environment to employees. In such
working environment workers can use their quality of skills and experience. Mike requires
members of the sales department to undergo medicals with the help of doctor of firm with a set
of target establishing their fitness levels. Workers, who are overweight, would be required to diet
until they reach a target weight, while smokers would be required to attend classes aimed at
persuading them to quit smoking. Higher authorities of firm are responsible to protect rights and
interest employees. Through this they maintain performance of firm.
CONCLUSION
From the above report, it is concluded that Employment Rights Act, 1997 consists various
rules, regulations, policies and procedure which are able to maintained performance and work
quality. At the time of recruitment both employer and employees are coming in contractual
relationship with each other. They frame written legal document with each other and signed the
same as well. Various types of terms and conditions mentioned under legal document which is
needs to be fulfil by them for the purpose of comply with law. As they are bound to protect rights
and interest which are already mentioned under provision of law. In the present report discussed
about ABC Ltd. which is software producing and managing firm. It employed around 250 staff
members and responsible to maintain their performance as well. Steve Brown is the person who
act as sales director at ABC who wants to resign from firm. So that, company appoint another
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person on his place to fill the vacancy of sales director. Applicant apply for the post from same
firm such as Mike and others. Several types of legal risks created which are faced by ABC.
These risks are related with payment, dismissal health and safety of every embers of the firm.
Every employee of the firm having right to file case against wrongful act in order to receive
amount of compensation equal to amount mentioned under law. But in some cases companies are
not considered as guilty so that several defences are protect them from wrongful act. As
employers are bound to fulfil rules and regulation which imposed on them.
RECOMMENDATION
In the given case most of the recommendations are provided to firm to enhance their
performance in effective manner. Employers have to maintain strong relation with employees
and have to defend their rights at the time of executing activities. Several rights and duties are
imposed both employers and employees. Every person is responsible to comply with different
provision of employment law and responsible to maintain effective performance in international
market. Managers and leaders of this company have to opt advance technologies to provide
effective training to their employees in order to enhance their skills, knowledge and experience.
Best suitable techniques need to be use for meet target and goals of the firm. Members have to
use their ultimate efforts for the purpose of achieve set of goals and objectives. Different duties
and responsibilities are imposed on each and every member of firm and control their
performance. They have to provide payment according to their skills which are mentioned under
law.
REFERENCES
Books and Journals
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Employment Law." Okla. L. Rev. 64 (2011): 1.
Ecchia, Giulio, Martin Gelter, and Piero Pasotti. "Corporate governance, corporate and
employment law, and the costs of expropriation." Review of Law & Economics 8, no. 2
(2012): 457-486.
Fisk, Catherine, and Adam Patrick Barry. "Contingent Loyalty and Restricted Exit: Commentary
on the Restatement of Employment Law." (2012).
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Fisk, Catherine. "The Anti-Subordination Principle of Labor and Employment Law Preemption."
(2011).
Liisberg, M. Ventegodt. "Disability and employment: a contemporary disability human rights
approach applied to Danish, Swedish and EU law and policy." PhD diss., Maastricht
University, 2011.
Mathur, Nayanika. "Transparent‐making Documents and the Crisis of Implementation: A Rural
Employment Law and Development Bureaucracy in India." PoLAR: Political and Legal
Anthropology Review 35, no. 2 (2012): 167-185.
MCCrudden, Christopher. "Two views of subordination: the personal scope of employment
discrimination law in Jivraj v Hashwani." Industrial Law Journal 41, no. 1 (2012): 30-55.
Naidu, Suwastika. "The Nexus between human resource management practices and employment
law in the Fiji Islands: a study of the employment relations promulgation." International
Journal of Entrepreneurship and Small Business 16, no. 2 (2012): 164-175.
Vosko, Leah F., and Mark Thomas. "Confronting the employment standards enforcement gap:
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Online
Employment Rights Act 2008 and Regulations. 2016. [Online]. Available through:
<http://labour.govmu.org/English/Legislations/Pages/Employment-Rights-Act-2008-and-
Regulations.aspx>. [Accessed on 8th November 2017].
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