Understanding Government Grants and Bankruptcy Laws

The provided business law assignment examines several critical areas within the field. The first section discusses resolving employment disputes with a focus on UK law concerning employee reprimands, suggesting that businesses ensure compliance to avoid legal challenges. It emphasizes documenting reasons for reprimands and ensuring fair treatment under employment laws. The second part addresses Individual Voluntary Arrangements (IVA) as a means to manage debt responsibly when businesses face financial difficulties. This involves obtaining court approval and paying creditors proportionally from asset sales. Strikes' impact on employment contracts is scrutinized next, highlighting how UK law governs the suspension of rights for directors during insolvency processes initiated by creditors. Lastly, the assignment reviews government grants' criteria and bankruptcy laws, underlining the importance of understanding financial assistance eligibility and effective debt management strategies to prevent insolvency.

BUSINESS LAW

TABLE OF CONTENTS
QUESTION 1...................................................................................................................................1
Application of law and giving legal advises...........................................................................1
QUESTION 2 ..................................................................................................................................2
Alternative legal solution.......................................................................................................2
REFERENCES................................................................................................................................4

QUESTION 1
Application of law and giving legal advises
1. Reprimand means to issue a disciplinary notice to an employee by employer on the ground of
inefficient work performance or incapability to carry out the job effectively. Workers of each
organization are empowered by the UK law related with reprimand (Dismissing staff and
redundancies, 2018). These are the employees who must be given with a written or verbal
warning related with policies and rules that are not adhered by him. It must not include any type
of discrimination; be it racial or sexual. The management of West End business was right in their
action of reprimanding employee for improper dress and behavior but failed to give appropriate
explanation to him for the same which is infringement of staff’s rights. The firm is advised to
give written warning to employee stating the reasons for it to avoid reprimanded being racial
discrimination.
2. The business owner is advised to get an individual voluntary arrangement with the creditor to
whom it owes £3000 from the court. In this, the owner is required to pay an agreed amount for
almost 5 years to a licensed insolvency practitioner (Draghici, 2015). That person after deducting
the fees pays reaming amount to the creditors. If the payments are made on time as per the
agreement, debts are deemed to be settled in full and final settlement of all claims. In the present
case, the shopkeeper is advised to enter into IVA with his creditor to pay him £85 every month
of 5 years.
3. As per the employment act, 2004 employees can participate in strike when it is called to be put
by the union trade with majority of votes in favor of the strike taken by all trade union members.
When staff of a business goes on a valid strike, they are empowered for their full employment
rights with certain limitations (Kashyap and Parihar, 2019). Employer cannot fire them as the
same will amount to unfair dismissal. When the employees go on strike and refuse to carry out
their work under employment of employer, it is considered repudiator breach of their
employment contract. This gives a right to the employer to sack their employment and to
repudiate employees from job without notice or pay in the lieu of notice. In present case, lawsuit
filed by employee is not tenable as they did not go under a valid strike as per the UK law.
4. The provision of government funded grants states that some grants are available to educational
institution till the completion of course only. The funds are received by colleges up to the time
period of course completion. The college becomes ineligible for getting any further funds for
1

courses which have been completed (Lindeman, Crandall and Finkelstein, 2017). In the present
case, whatever the reason is given by government, fact is that college is no more eligible to take
funds from government for the course works which have already been completed. The action of
government cannot be questioned as college have no valid grounds to take funding for the
courses which are currently not in going process.
5. As per the UK Bankruptcy law, creditors can apply for bankruptcy for their debtors who own
a substantial amount of money to their creditors (Debt crisis, 2018). Company can file a
bankruptcy petition in the court for recovery of sum from assets of debtors by selling them to pay
its debts. For this, the conditions must be proved in court that business owes at least £5000 or a
share of debt that totals at least £5000.
QUESTION 2
Alternative legal solution
Scenario 2: As per the Australian law, shopkeeper can go for bankruptcy and for the
same, he is required to demonstrate to the judge that business and shopkeeper are unable to pay
all debts owned. As business is on the verge of getting insolvent, so with getting bankruptcy
order, creditors will be paid from the amount realized from selling of assets and property of
business (Bankruptcy, 2018). Moreover, the bankruptcy order continues for a person of 12
months only and with the ending of this, no creditors can make further claims for the debt owned
by shopkeeper. Hence, its shopkeeper can file an application in court for bankruptcy before
creditor can take an action against the business.
Scenario 5: As per the Indian Insolvency and bankruptcy Code (IBC) 2016, the creditors
can go National company law tribunal to trigger insolvency process where board of directors will
be immediately suspended including right to recover dues from debtors. The tribunal takes
control and legally bound debtors to pay the sum due.
2

REFERENCES
Books and Journals
Draghici, C., 2015. Insolvency of Individuals in European Legislation-Great Britain. In Conf.
Int'l Dr. (p. 173).
Kashyap, A. K. and Parihar, K., 2019. Corporate Insolvency Laws in Singapore: Restructuring
and Reforms. In Corporate Insolvency Law and Bankruptcy Reforms in the Global
Economy. (pp. 191-214). IGI Global.
Lindeman, M. I., Crandall, A. K. and Finkelstein, L. M., 2017. The Effects of Messages about
the Causes of Obesity on Disciplinary Action Decisions for Overweight Employees. The
Journal of psychology. 151(4). pp.345-358.
Online
Bankruptcy. 2018. [Online]. Available through: <http://findlayjames.co.uk/bankruptcy/>.
Dismissing staff and redundancies. 2018. [Online]. Available through:
<https://www.daslaw.co.uk/blog/dismissing-staff-and-redundancies>.
Debt crisis. 2018. [Online]. Available through:
<https://www.financialexpress.com/economy/debt-crisis-how-insolvency-action-iyos-
forcing-debtors-to-pay-up/639377/>.
3