Analysis of Employment Law in the UK: The Sports Direct Case

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Assignment 2
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Table of Contents
Introduction................................................................................................................................4
Identify the ways in which the law regulates business organisations. Evaluate workplace
legislation drawing examples from the recent case of Sports Direct.........................................5
Employment Law...................................................................................................................5
The Employment Rights Act, 1996....................................................................................5
The Employment Relations Act, 2004...............................................................................6
The Employment Act, 2002...............................................................................................6
Health and Safety Act, 1974..............................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
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Introduction
Workplace Legislation are framed in order to resolve the disputes at the place of work. The
employer and employees need to be aware of their rights and obligations towards each other
for avoiding conflicts. Every person related to the workplace should comply with the
provisions and policies stated under the workplace legislation for the smooth working of the
business. In the following report, several workplace legislation has been discussed with
reference to the recent case of Sports Direct.
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Laws regulating business organisations
At workplace employees often face issues like discrimination, unfair dismissal,
underpayment of wages and risks allied to their health and safety. The Employment law aims
at restraining employers from abusing employees and provide employees with work
flexibility. The purpose of the law is to deal with these issues and oblige employers to take
safety measures in order to ensure the workplace safety of their workers (Countouris, 2016).
The major workplace legislation with which the employers needs to comply with are as
follows:
 The Employment Rights Act, 1996
 The Employment Relations Act, 2004
 The Employment Act, 2002
 Health and Safety Act, 1974
The Employment Rights Act, 1996
The purpose of the act is to protect the rights of every person associated with the workplace
(Li, 2018). The areas which are covered under this Act are as follows:
 It bounds the employers to make guaranteed payment to the employees even when
they could not find work
 Unauthorised deductions are unlawful
 The employers are bound to give employees a copy of the employment contract
 It aims at ensuring that the workers are paid the minimum wages in accordance with
the National Minimum Wages Act,1998
 To give paid leaves for the holidays and maternity leaves
 Allow the employees with the day off when they are owed with the public or personal
duties
 To state and aware the employees with the dismissal procedures in order to avoid
unfair dismissal
 Entitle the employees to receive fair compensation
For Example, in the case of Sports Direct, there were unfair employment practices were
carried out like
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 Their policy of “Six strikes and you are out” resulted in unfair dismissal of
employees
 As per the minimum wages act employees are entitled to receive minimum wages of
£6.70 per hour but at the Sports Direct they were underpaid with the amount of £6.50
per hour
 Unfair deductions
The Employment Relations Act, 2004
The aim of the act is to avoid conflicts within the employees and with the employers.
Following points are covered by the scope of the Act:
 The Act recognizes Trade Unions which depends upon the size of the company
 It states the procedures to be adopted by the trade unions
 Its provisions abstain the unfair dismissal
 To allow a day off to workers for performing their personal obligations they owe to
their dependents
 Allow the employees for part-time work in case of emergencies
 Allow Parental leaves
At the Sports Direct, the employees are united with the Union. They were several
negotiations regarding the workplace problems but it did not turn out to be meaningful
negotiations as there was no definite outcome. Though there was no definite outcome yet the
evidence shown the possibility of better results from the establishment of the trade unions
which may result in the reduction of the risks involved in ensuring the safety of workers and
other workplace issues.
The Employment Act, 2002
The Act was commenced with the objective of creating a "family-friendly" working
environment. The Act ensures flexible working hours so that the employees can carry out
their personal obligations. It helps the executors and managers with the supervisory functions.
Following issues are resolved under the guidelines of the Act:
 Procedure for recruitment and termination of the workers
 Resolving workplace conflicts
 Provisions for fixed-term work instructions
 It aims at improving procedures carried by the employment tribunal
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In the case of Sports Direct, one of the major questions was regarding the fairness of the
voluntary schemes of the company. The Gangmasters Licensing Authority was requested to
look into the matter and ensure whether the deduction policies and the voluntary salary
sacrifice are lawful and if unlawful then to what extent.
Health and Safety Act, 1974
The act aims at ensuring the safety of employers and employees at the workplace as there is
major risk involved in a relationship with the health and safety of the workers. The provisions
of the Act aims at the following:
 Safeguarding the welfare, health, and safety of the workers
 Ensure the orderly use of explosives or flammable or other dangerous substances
which may result in hazardous incidents.
 Controlling the emission of obnoxious and harmful influents in the atmosphere
 Prevention of unlawful acquisition of hazardous substances
In case of any accident, the employers have the duty to pay compensation to the workers who
have suffered the injury. And to avoid such accidents, employers and employees should take
reasonable care and preventive measures while handling such harmful substances (Taylor and
Appleby, 2017).
It is quite evident that the Sports Direct failed to comply with the provisions of the Act,
hence, as a result, many accidents were reported in the year of 2013 and 2016. Over 50 cases
were recorded regarding life intimidating events. The company must not oversee the
provisions of the Act and take reasonable care and safety measures in order to ensure that the
workers leave the premises safely.
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Conclusion
It is the duty of the company to provide a safe environment to the workers. The Employers
have the duty to provide employees with the standard tools, materials, and machinery. In
order to carry out fair employment practices, the employers must comply with the provisions
of the legislation. The employees must be protected against the wrongful dismissal of the
employees. According to the law, the employees must be given a notice of a month before
termination. As in the case of Sports Direct the company is responsible for all the unethical
and atrocious activities carried out at the factory and at the retail outlets. The company must
take appropriate measures for the prevention of such activities. In case of any breach of the
provisions, the employer has the burden to prove the reasons for such breach and if the
circumstances are fair.
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References
 Countouris, N., 2016. The changing law of the employment relationship: comparative
analyses in the European context. Routledge.
 Li, Y., 2018. Three Essays on Development and Labor Economics.
 publications.parliament.uk, 2016. Employment practices at Sports Direct. [Online].
Available at:
https://publications.parliament.uk/pa/cm201617/cmselect/cmbis/219/219.pdf.
[Accessed on 5th May 2019]
 Taylor, A. and Appleby, M., 2017. Health and safety obligations for a surveyor: Duty
of care. Journal of Building Survey, Appraisal & Valuation, 5(4), pp.382-389.
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