Business Law Report: Legal Issues in Business Operations

This report analyzes key legal issues in business operations, focusing on employment contracts, equal pay, and health and safety regulations. It begins by examining the legal validity of verbal employment agreements versus written contracts, referencing the Employment Rights Act 1996 and relevant case law. The report then addresses equal pay issues, specifically focusing on the Equal Pay Act 1970 and the implications of gender-based pay disparities within an organization, including the legal rights of employees. Finally, the report discusses the implications of working conditions under health and safety regulations. The report provides insights into the legal aspects of business management and offers recommendations for ensuring compliance with relevant laws and regulations. This report is a student contribution to Desklib, a platform offering AI-powered study tools and resources for students.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Issues related to Employment Contract between parties....................................................1
2. Issues related to equal pay within an organisation ............................................................3
3. Implications of Working Condition under health and safety regulations...........................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business activities takes place on regular basis and thus it involves management of
various kinds of issues be it legal, political, ethical or economical, if the same has to be managed
in a proper manner then there is a need to make sure that proper knowledge of all the legal
aspects that affects business are there with the management of an organisation for managing the
growth of these businesses. This report will try to effectively address the legal issues that an
organisation as well as individuals within it faces over period of time. There is a need to make
sure that effective management of all the issues that are faced by individuals in an organisation is
carried out, so that the same can be resolved (Aggrawal, 2016). The report will try to analyse the
various kinds of situations faced by different individuals and what remedies are available with
them under the law.
1. Issues related to Employment Contract between parties.
Introduction
Chia Ltd. Is an organisation that is being run and managed by Mr. Joseph, He has
appointed a Secretary named Dwayne and Dwayne has been working within the company from
last Six weeks. The agreement related to contract between the two parties were purely verbal and
there were no written agreement that has taken place between the two, Joseph is in a conundrum
that whether a verbal agreement is a lawful contract between the employer and employee or
instead a written agreement is needed for the same. A contract is a piece of paper which can be
shown as a evidence within court that can be very useful as well as effective over period of time
for both employers as well as employee, thus there is no negative in reducing the agreement into
writing.
Law
The law related to this case is Employment rights act, 1996 hereafter referred to as ERA
Act 1996. This act clearly states the law related to agreement that are needed for the purpose of
working in an organisation. As per section 230 of the Act, a contract of employment can be
expressed or implied and can be either written or oral. Thus, the law lays down provisions related
hiring of employees as workers or employees within the organisation and the rights and duties of
both employer and employee in this regard (Bhatia, 2014). These shall be abided by both
employer and employee, for effective and harmonious working between the both.
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Assessment
A contract is an agreement between two parties which is usually made for a consideration
and thus it is very much important to make sure that both the parties perform their promise in an
effective manner and there is no breach from any party whomsoever. Joseph is the employer,
under the current case, who has hired a new secretary, Dwayne. The hiring has taken place
without a real written agreement between both the parties and Joseph is concerned whether it is
necessary to reduce the contract in writing or just a verbal contract is enough in the eye of law.
There are various rules as well as regulations that prevails within the business
environment and some of the primary ones are related to contract between two parties and their
rights as well as duties towards each other. It is the duty of court, to assess and analyse the
situation in a proper manner and then reach to a specific conclusion whether the actions
performed by both the parties are in any way hampers any of the provisions of relevant law.
If there will be no proper written agreement between employer and employee, then it can
pose problems for both employer and employee in the longer run, they might have to face certain
disputes related to payment and work that is being performed and when the case will move to
concerned court, It will become extremely difficult for the court to assess, which party is correct
and which is not. Thus, there may be situation that a party to the contract will be able to get
undue advantage of the other party, because of vagueness that are there in the agreement. In
united Kingdom, Most unskilled workers usually works on will and they can leave the
employment at anytime, and their vacancy can be filled very easily over period of time and the
same is not Illegal in the eye of Law. As laid down in Jivraj Vs. Hashwani [2011], The
arbitrators did not have employment contract in between them and the agreement was only oral,
court ordered that the agreement is quite valid and can not be undermined, only because there is
no real written agreement between the parties. In Newnham Farms Ltd. Vs Powell (2003), It was
laid down by court that employment contracts can be said to have arises from the conduct of both
employer and employee, that means if an individual is working for another individual for
consideration then one person can be said as employer and the person working can be called as
worker and there exist a verbal agreement between both, which shall be abided by both the
parties effectively (Combe, 2012).
Conclusion
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Thus, From the above case, it can be concluded that the contract of employment can be
both Verbal and written,as laid down in Section 230 of ERA Act, 2013 and there is no mandate
in law that contract of employment shall be only written in nature and not oral. Thus, Joseph is
right at his place in having a oral agreement with Dwayne to employ him as secretary, however it
will be easier for the both the parties to resolve any future dispute, if the same arises because it
will become easier to prove the same in court. If, on the other hand, There will be no real written
agreement of employment between both the parties then it will become enormously difficult for
both the parties to prove the same in court over period of time. Hence, Though it is not illegal to
work in an organisation on a verbal contract but Joseph and Dwayne shall make a written
agreement to facilitate themselves in future.
2. Issues related to equal pay within an organisation
Introduction
Under the current issue, There are three employees working In Chia Ltd. These were 3
people 2 men and 1 Women. Namely, Samuel, Simon and Sonia, all the three individuals
performs the same kind of work in terms of type of work as well as the hours of duty. All of
them were hired in 2011, their age is also somewhat similar. However, Samuel and Simon is
being paid 10 Pound per hour as compared to 7 Pound per hour to Sonia. There are various
legislations as well as provisions that are there and specify that there shall be equality in payment
to employees, if there work is same and their pay shall not be discriminated on the basis of
gender. Joseph is seeking advice on the same issue, whether paying on the basis of gender is
right it would attract any provision of law (Lopez-Tarruella, 2012).
Law
The law related to this issue is Equal Pay Act, 1970. The law states that it is very much
important to make sure that payment of wages or salary to employees by employer is done on the
basis of work done by them and on the basis of their experience or any other factors the
employer feels right. But the reason for a higher payment to another person can not be his or her
gender in any way. This act lays down provisions as to what shall be the basis of payment to
employees and there shall not be any element of discrimination on the basis of gender while
making a payment for the same. This act basically tries to imply a sexual equality clause
automatically among all the contracts of employment, because law treats both men and women
on an equal footings and there shall be no discrimination among the both.
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If an employer discriminate on the basis of gender, there there is a right with women to
demand an equal pay from employer, provided, the woman works for the same employer at the
same workplace, or for the same employer at a different workplace but where common terms as
well as conditions apply, for example another branch of a particular store etc. Once these
provisions are met a women is entitled to equal pay from her employer and the employer will
have to pay equally on that basis (Maier, Meyer and Steinbereithner, 2016).
Assessment
Under the current case, the 3 Employees were working within the organisation from 2011
and thus were quite experienced workers of the firm. 1 out of the 3 was women and were not
paid equally by the employer, despite the fact that all the three were on equal footings in terms of
work experience, age, work type etc. but Samuel and Simon were paid 10 pound per hour as
compared to only 7 pound per hour to Sonia. Thus, it is a clear case of discrimination in payment
of wages to employees or workers, which law prohibits. The government has now mandated to
issue gender pay data through a regulations framed in 2017. The gender pay gap analysis
basically tries to show the gap in payment to employees calculated on the basis of their genders.
Companies having more then 250 employees are required to publish gender data to show the
wage gap in male in male and female workers. The recent data showed that around 78% of UK
companies paid more to men then women with a pay gap median of around 9.7%.
Hence from the above discussion, it is quite clear that women are being paid less within
the organisation despite the fact that the nature of work performed and the hours worked are
identical enough. Sonia is having the rights to contend the decision of employer to pay her 7
pound an hour as compared to 10 pound an hour to other two male employees. There is a need of
broad mindset and thinking from the side of employers while treating employees, they shall be
treated on equal footings instead of discriminatory treatment which can be a moral setback for
employees and they may end up not contributing well for the organisation over longer period of
time.
Conclusion
Thus, it can be said that the decision of Joseph to pay 7 pound an hour to Sonia as
compared to 10 pound an hour to simon and Samuels is prima facie seems to be discriminatory
decision and the same shall be reversed by him and he shall start paying to Sonia equally that is
10 pound per hour. If he refuses to do so, then Sonia would be having an option to challenge the
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decision of Joseph in court, where he will be asked the reason for gap in such payment, and if the
court is not satisfied then it can order in favour of Sonia to pay her an amount which is on par of
the amount paid to other male employees. Joseph shall pay Sonia on the basis of her work done
and hours worked rather then on the basis of her gender, which will not going to send a good
message among other female employees of Chia Ltd. Going forward. There is a need to take care
of all the legal aspects before making a decision of pay to employees. Joseph shall frame new
norms regarding payment of wages to women employees. She shall be paid 10 pound for an hour
of work as well, this will boost her confidence and her productivity will improve even further.
3. Implications of Working Condition under health and safety regulations.
Introduction
The current case is related to the working condition that are being provided by employer
to employee within the workplace. Joseph is the director of Chia Ltd. And thus is responsible for
providing a healthy, safe and efficient working condition to employees, so that they will be able
to perform in an effective manner within the organisation without compromising with the safety
and security of employees over period of time. There were various issues that are being faced by
the 20 employees that were working in the factory, these issues include exposed wires, leaking
machines factory, slippery floor, a lack of fire extinguishers in the building, a faulty fire exit
door etc. The employees has been consistently reporting about these issues to employers, but no
effective action was taken in this regard which created a lot of problems for employees to work
properly within the factory. Thus, strict action is demanded from employer in this regard (Maly,
2014).
Law
The current law related to maintenance of health and safety at workplace is The
Management of Health and Safety at Work Regulations 1999. The act has laid down the various
regulations as to what shall be provided by employer to its employees, these regulations is based
on the international standards framed by the united nations. The ultimate aim is to make sure that
employees are not treated as animals and are provided with best possible working conditions
where they work. The government has been consistently putting efforts to implement the best
possible regulations that will protect the rights of employees and at the same time make sure that
it will not turn out too expensive for employers as well. The Employer shall continuously scan
the working environment situations, and it is important to make necessary improvement in the
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same from time to time, in no case the safety of employees can be compromised or taken for
grated by the employer. There is also a need to frame strict policies and procedures by the
management of the organisation to abide by the rules of health and safety standard of the
company. The current law leaves it on employers to identify the risk that are there to employees
and their safety and what steps he deems necessary for the safety of employees shall be taken in
an effective manner (Tank, 2012).
Assessment
The employees of Chia Ltd. Were being provided with a fairly compromising working
condition, where they were faced with problems of leaking machines factory, exposed wires etc.
which can easily cause a life threat to any of the 20 employees that are working in the company.
This is a very dangerous situation for an employee to work in, an employer can not sacrifice with
the health as well as safety of employees by giving such kind of working condition. Under
BURGESS V PLYMOUTH CC, CA (CIV DIV) 30/11/2005. The school was not providing
proper working condition to the workers as a result one of the container fell on a cleaners, which
leads to personal injury. The school was held liable under the workplace regulations, 1992 and
they had to compensate for the same. Employees are also human being having their families like
wife and kids which are the responsibility of particular individual (Schöpfel and Lipinski, 2012).
Thus, compromising with working condition would mean various issues related to safety of
employees which can have further repercussions on the working of employees within the
business. There is an essential need that government comes up with more stringent regulations to
effectively maintain a proper and healthy working condition at workplaces all over the nation.
This will enhance growth and development within the organisation over period of time because
healthy and effective condition would mean better productivity of employee at workplace.
Conclusion
Therefore, it can be concluded that there is a need that Chia Ltd. Properly takes care of all
the working conditions that are being provided to employees, if it fails to provide adequate and
satisfactory working condition to employees, then it is there right to demand a better working
condition for themselves which will take care of their overall health as well as safety. They have
all the rights to refuse to work in an unhealthy conditions that are being provided to employees
as it is a clear human rights violation, which would mean that even court cant force employees to
work under those conditions which are not healthier for employees to work. Thus, it is essential
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that management of Chia Ltd. Repairs all the problems that are occurring within the premises
and factories of the firm and they are responsible for making a proper working environment
which will ensure higher productivity of employees and at the same time a better health and
safety condition for employees at the work place.
CONCLUSION
Thus, From the above discussion that is being made on various legal issues related to
employees and employers. It is necessary for employers to make a formal written agreement
while hiring employees for the purpose of job. Though it is quite possible to have a verbal
contract and the same will be valid as well, but in case of dispute stretches till court, then it will
become easier for party to put their point when everything would have been reduced in writing.
Also it is essential that there shall not be any discrimination that is made between male and
female employee and they shall be given equal pay based on their work. Also it is the
responsibility of the employer to provide employees with right kind of health and safety
condition to work in, which is a mandate as per legal laws and regulations.
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REFERENCES
Books and Journals
Aggrawal, A., 2016. Necrophilia: forensic and medico-legal aspects. CRC Press.
Bhatia, V. K., 2014. A generic view of academic discourse. In Academic discourse. pp. 31-49.
Routledge.
Combe, C., 2012. Introduction to E-business. Routledge.
Lopez-Tarruella, A., 2012. Google and the Law. Empirical Approaches to legal aspects.
Maier, F., Meyer, M. and Steinbereithner, M., 2016. Nonprofit organizations becoming business-
like: A systematic review. Nonprofit and Voluntary Sector Quarterly. 45(1). pp.64-86.
Maly, C., 2014. Legal Aspects of Local Engagement: Land planning and citizens' financial
participation in wind energy projects. Renewable Energy Law in the EU,.pp.210-231.
Tank, R.W., 2012. Legal aspects of geology. Springer Science & Business Media.
Schöpfel, J. and Lipinski, T.A., 2012. Legal aspects of grey literature. The Grey Journal. 8(3).
pp.137-153.
Bhatia, V.K., 2014. A generic view of academic discourse. In Academic discourse (pp. 31-49).
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
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