UK Employment Law Compliance: A Report on Sports Direct

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The Employment Legislation
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Conclusion.......................................................................................................................................5
Reference List..................................................................................................................................6
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Introduction
As per UK, labour law organisations need to cater the needs of employees so that their
motivation level can be improved. Furthermost, effective relation between employees and
management helps to improve focus level of the employees. Labour law of UK also regulates
relation between, employees, management and trade union based on employment of charter.
Employment law of UK consists of various Acts so that equality of employees can be
maintained.
Discussion
As per National Minimum Wage Act, 1998 employees need to receive minimum salary of 7.83
pounds if they have spent 25 years within the same organisation. However, management of
Sports direct has launched disciplinary rules and regulations so that working atmosphere within
the organisation can be maintained. They have also launched a new rule known as six strikes.
The concerned rule states that if an employee breaks rules and regulations their salary will be on
hold. Further, they may be out of the organisation. The regulation has also, stated that employees
can be paid salary less than 6.70 pounds per hour if they are 20 years or below
(publications.parliament.uk, 2019). Thus, it can be stated that Sports Direct international PLC
has violated provisions of National Minimum Wage Act (legislation.gov.uk, 2019).
The employment Right Act, 1996, has stated that management of organisations need to treat all
the employees equally. As per subsection 2(4), after two months of employment, management
need to provide all facilities to the employees for their well-being. For instance, management of
Sports Direct maintains equality among the employees so that holistic development can take
place within them. They also believe that providing facilities to employees will help them to
nurture their organisational growth. Thus, management of Sports direct follows provisions of the
employment Right Act, 1996 (publications.parliament.uk, 2019).
Management of Sports direct have not framed any contracts between their permanent employees
working in the shops and warehouse. On contrary, they have also framed permanent contract and
Trasline contract for their direct and contractual employees (publications.parliament.uk, 2019).
The working time regulation Act, 1998 states that employees have the right to enjoy 28 days
paid holiday so that they cannot feel the work pressure. Systematic work timings also help
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employees to maintain work life balance. Further, the Act has mentioned that employees need to
work for 48 hours in a week (legislation.gov.uk, 2019). The employees also have the right to
enjoy annual leaves for 4 weeks in a month including bank holidays and government holidays.
The management need to provide 20 minutes rest after working for 6 hours (legislation.gov.uk,
2019).
The employees of Sports Direct are bound to work for 48 hours in a week. Thus, it can be
mentioned they are not abiding by the provisions of working time regulation Act, 1998
(legislation.gov.uk, 2019). On contrary, the organisation does not guarantee any duration of
work. Thus, the employees get exhausted. In the organisation, payment is based on the duration
of work (legislation.gov.uk, 2019).
Employment regulations have mentioned that employees need to enjoy freedom within the
organisation. On contrary, in the present organisation transline contractors are not allowed to
enjoy any kind of freedom. Moreover, they are bound to accept all assigned to them. Thus, it can
be deduced that sports direct neglects general employment law (legislation.gov.uk, 2019).
The management does not pay extra incentives to the employees as appraisals. However, they
need to be available to receive all kind of assignments. Thus, they do not abide by the provisions
of the employment Right Act, 1996 (legislation.gov.uk, 2019). The equality Act, 2010, has
mentioned that organisations need to treat all employees with equal respect. However, Sports
direct have implemented different regulations for different group of employees. Thus, they have
failed to follow provisions of Equality Act, 2010 (legislation.gov.uk, 2019).
The work time regulation Act, 1998 has mentioned that employees can work for 48 hours within
a week. On contrary, employees within Shirebrook warehouse are forced to work 24 hours in a
day. Thus, they do not abide by the regulations of Employment Act. Further, 10 pounds from the
salary are also deducted if the employees take a day off (legislation.gov.uk, 2019). Permanent
employees are also given facilities like credit and debit cards are provided to the employees for
their convenience. However, no facilities are provided to contractual employees. Thus,
management does not abide by the provisions of the equality Act, 2010
(publications.parliament.uk, 2019).
Healthy and safety Act, 1974 has stated that management of organisations need to provide health
insurance to all the employees in free cost. However, Sports direct provides health insurance to
the employees by deducting 2.45 pounds for 2 weeks from their salary. Moreover, 15 minutes
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salary is being deducted from the employees’ salary for one-minute late log in
(publications.parliament.uk, 2019). Thus, they have failed to maintain the provisions mentioned
in Section 2 of Minimum Wage Act (legislation.gov.uk, 2019).
For instance, if an employee get late for 2 minutes then their 15 minutes salary will be deducted.
Thus, it can be mentioned that management of the organisation does not take care of the
employees. Thus, their employee turnover rate is also getting reduced
(publications.parliament.uk, 2019).
The health and safety act protects the employees from getting physically and mentally harassed.
However, management of the concerned organisation does not look after the safety of the
employees. Thus, between January 2010 to April, 2016 over all 115 incidents have taken place.
Moreover, 79 injuries, twelve of incidents were termed as major injuries. After the incident,
some of the employees were unable to attend work for next seven days
(publications.parliament.uk, 2019).
Conclusion
Thus, in the present study provisions of employment law have been discussed. At the time of
discussing the provisions, it has been noted that employees need to be treated equally so that they
can be motivated. However, the organisation fails to maintain safety of the employees. Thus,
employee turnover rate is increasing largely. Finally, it is suggested that Sports Direct need to
follow provisions of employment law so that overall working atmosphere can be improved.
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Reference List
legislation.gov.uk 2019 legislation of UK [Online] Available at: https://www.legislation.gov.uk/
[Accessed on 26 April, 2019]
publications.parliament.uk 2019 Case study of Sports Direct [Online] Available at:
https://publications.parliament.uk/pa/cm201617/cmselect/cmbis/219/219.pdf [Accessed on 26
April, 2019]
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