Legal Framework, Business Structures, and Employment Report

This report provides a comprehensive analysis of the UK legal framework, encompassing the English legal system, branches and sources of law (including common law, Acts of Parliament, and customs), and the structure of the UK court system from tribunals to the Supreme Court. It examines the process of company formation in the UK and the parliamentary procedure for enacting a bill into law. The report also delves into the gig economy, defining its characteristics and contrasting the roles of independent contractors and employees, referencing the Pimlico Plumbers v A Smith case to illustrate employment status determination. It then applies these concepts to the case of KANGO couriers, assessing their employment status. Furthermore, the report outlines different types of business organizations, including sole traders, partnerships, and limited companies, and proposes alternative dispute resolution methods to resolve business disputes. The report concludes with a discussion of the role of government in law-making, and the application of common and statutory law.

The legal framework
and
Legal solutions

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The legal framework of the UK defines the laws and regulation that is applicable to
businesses and to the public as well. The legal solutions are defined under the legal concepts of
UK which gives authentic solutions to the commercial issues as well civil and criminal offences.
In the present report the nature of English legal system is explains with defining branches and
sources of law with the court structure in the UK to the staff of KANGO (K). The role of
government in process of law making with application of common and statutory law is
explained. Along with this the legal employment status of the couriers is determined. The K's
management is presented with the details of different types of organisation which it can choose
from. Furthermore, alternative dispute resolution methods are suggested in order to resolve a
business dispute over the litigation process with IT suppliers.
TASK 1
English legal system:
The English legal system is the one of the oldest law of the world. The legal framework
of the UK gets its content from the customs. But with its legalisation in 1689 the sources of law
got expanded. The legal frameworks defines various statues, rules and regulation guiding the
conduct of business as well as the people of UK.
Branches of UK law:
Criminal law: is that branch of the legal system of UK which deals with the cases of
more serious natures this includes both summers and serious offences. The cases of criminal
natures are robbery, rape, murder, sexual assault (Manyika and et.al., 2016). The criminal
offences generally related to intent of incur serious bodily harm or killing another person. For
such offences remedies are available as prosecution, life imprisonment ans fines. The capital
punishment in the UK has been banned.
Civil law: is that branch of law that deals with the cases of less serious nature. This deals
with action of civil wrong done to a person by another or an organisation. The civil wrong means
breach of contract, negligence, tort, breach of care of duty. The party who suffered with any of
this facts can get a remedy under the civil court as compensation of the damages endured.
Sources of Law:
Common law: is the oldest source of law in UK where the decisions of earlier cases are
referred by the court in the cases of similar subject matter before giving a ruling on the law suit.
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This decisions must be followed by the lowers courts compulsorily as this get a binding effect
through the doctrine of judicial precedent. All the lower court are required to follow the ruling
passed by higher court.
Act of parliament: is that source of law under which acts and statute law are preprepared
by the parliaments through following the procedure to make a law (Gonçalves, 2016). The acts
are formed after getting approval form both the houses of parliaments and after that getting
assent from the queen. No court can overrule or question an act and are required to followee the
acts and statute law compulsorily without ant modification.
Customs: is also an older source of law of English legal system. This can be explained as
habits and behavioural practices of people which becomes a regular practised things over this the
government sometimes make a law as this is a usual action in the public.
The court stricture of UK:
Tribunals: this is the first authority to here any matter, here the cases related with matter
of asylum, criminal injury, compensation, social security, employment, child security.
Magistrate courts: here the case of summery criminal offences are heard which are of
less serious nature. The cases are related with gambling, betting, liqueur licensing which are
heard by either a penal of 3 judges or a district judge.
Crown court: This deals with criminal cases which are transferred from magistrate
court. This includes rape, murder, sexual assault, robbery (Burtch, Carnahan and Greenwood,
2018). The case is heard by a jury and decision is passed by the judge.
County court: This court deals with the matters of complicated nature which includes,
claims for repayment of loan, breach of contract, mortgage, rent arrears, Here cases are heard by
judge rather than a jury. In other words, it involves in dealing with problems or cases transferred
from magistrate courts. Hence, example of such cases includes murder, rape and robbery etc.
High court: Such court mainly hears or deals with more serious as well as complex civil
and family cases/issues. This is divided into three division:- chancery, Family and Queen's
Bench division. All theses division deals with different types of cases such as bankruptcy,
business disputes, insolvency, company management, and disqualification of directors,
intellectual property.
Court of Appeal: It is recognized as senior court of England and Wales which handels
mainly two areas such as criminal and civil. Hence, this is divided into two parts: civil and
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criminal. The civil division hears apples related with civil law and family justice from the high
court, tribunals and specific cases from county court.
Supreme court: this took place of house of Lords back in 2009 and hears the appeal
from the high court. Here a penal of 5-9 justice of lords hears the appeal.
Privy council: this is the final authority in UK to file an appeal either to the Queen or to
the judicial committee. As this is final appellate authority no appeal form here lies to any other
authority.
(Source: The Judicial System of England and Wales A visitor’s guide, 2019)
Steps to form a company in UK: For setting up company in UK following steps need to
be undertaken such as:
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 At the first step, one needs to select a suitable company name pertaining to potential
business
 Thereafter, business entity needs to specify company’s address
 In the third step, focus is placed in the appointment of director
 At this stage, details of company’s share need to be disclosed. On the basis of laws,
business entity needs to specify at least one shareholder.
 Once all such formalities have been done then business entity requires to check SIC code
 As per the rules, written consent from shareholders need to be taken via memorandum
and article of association
Hence, by following the above mentioned process business entity can do registration of
company.
Parliamentary procedure to for a bill:
A draft legislation approved from the cabinet minister is presented in the parliaments for
getting approval. It can be presented in any of the houses of parliament and then a Royal assent
is taken from the Monarch before converting the bill into law. The bill is first presented to the
house of parliament through first reading. Here the title of the bill is read out loud and details are
given on what the bill is and on what discussion is to be carried on (How does a bill become a
law?, 2018). After his bill goes to the second reading here voting is done over that weather the
bill is be carried further or not. Form here the bill goes to the committee stage where the house
committee discuss them in detail and make changes in the bill (Hutchinson, 2018). From here
bill is referred back to the house under report stage to undertake the debate and amendments
made. At this stage again voting is done on continuation of the bill. After this comes the third
stage where a small debate is one over the matters and changes done and final voting is done to
pass the bill to other house of parliament. Form here bill goes to the other house where it goes to
the same stages and if any changes are made it is referred back to the first house. After
considering all the changes the bill is finally approved by both the houses get a formal approval
from the Queen. With getting a Royal asset the bill get converted to a law.
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(Source: How does a bill become a law, 2018)
TASK 2
The gig economy: concept can be defined as the as that markets whose operation flows
under the free economy. Under this a business enters into a contract with an independent
contractor for a limited time period and short term engagement (Kim, and et.al., 2015). The
contract entered here is of temporary nature. The independent contractor carries out the work
with his/her tools and equipments and on their terms and condition. They can hire someone else
to do their work and they operate individually without any supervision from the employer.
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Pimlico Plumber v A Smith: case highlighted the terms and condition of individual
contractors and defined their legal employment status. The decision of he case in 2018 clearly
stated that self employer worker do not work as per the supervision of the employer and also
they enjoy their rights of independent worker. But Smith used to work as per the supervision of
pimlico and he carried identity, wore uniform, drove branded van with attached GPS tracker of
the company. All these facts were considered by the court and Smith was declared to be
employee of Pimlico plumbers.
Basis Independent contractor Employee
Tools and Equipment The self employed worker
bring in own tolls and
equipment to render the
services.
The employer provide
material, equipment and
machinery to carry out the
employment services.
Services by others A self employed person can
hire someone else to carry out
the work.
An employee can not hire
anyone to render his /her
services.
Supervision The employer do not
supervise the activities and
operation and do not give
instructions.
The employer gives
instructions as well as
supervise the work of
employee.
Employment benefits No entitlement over pension,
car facility and other benefits
of the company.
The employee have a right to
enjoy the pension, car facility,
canteens, sport club of the
company.
Other benefits under
employment
No entitlement over the
holidays, medical, sick,
maternity and paternity leaves.
Eligible to all these benefits
along with national minimum
wages.
Employments status of the couriers of KANGO:
As per the given case scenarios the facts to the case are found as the couriers are required
to ride the branded colored bicycles of K for delivering the meals to the costumers (Essential-
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know-how, 2018). They are required to wear the uniform of the organization and had entered in
to a written agreement with the company K (Askehave, 2017). Moreover they were instructed by
the managements to informs the operations team of K before taking a leave and they have to tell
this before 48 hoes of taking a leave. With putting all this factors together ti can be stated that K
company had a great control over the couriers who are working as independent contractors for
the company. Moreover, with the case of piccolo it can be stated that the couriers were not
providing the services on there terms and condition rather they were instructed by management
of the K with giving them tool and machinery that is bicycle to perform their duty. Hence, the
couriers are the employee of KANGO.
TASK 3
Different types of business organisation present through which a business can start its operation:
Sole trader: is the simplest and easiest form of starting a business as this does not require
any legal obligation to be followed to start and run the business. This type of business is formed
by a single person and the profits of business belongs to that person only. The liability of the
owners in this business is unlimited as his/her personal assets can be sold to meet the business
debt and liability.
Partnership firm: is another form of business organisation that a person can choose to
start a business. In this two or more person start the business together with bringing in the capital
to fund the business start up and operating cost (Lee and et.al., 2016). The partner's liability is
also unlimited in this business and the profits of the firm is distributed among the partners in pre
decided ratio. This can be or cannot be registered under the gazelle framework.
Company: is a the form of business organisation that is registered legally under the
companies Act, 2006. it start this type of business huge funds are required. The liability of a
directors and managers is limited as they and the company are tow distinct person under the eyes
of law. This means company have its own assets and properties with personal obligations sand
duties distinct from its directors and members.
Limited company as a business solution to the KANGO:
With registering the business as a limited company following advantage are available to it:
 the business will get a separate legal entity as with own assets and liabilities.
 The liability of directors and manager will get limited as they can not be held liable for
the action of company.
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 Company have a legal right to sue and be sued under its name.
 Its have a rights to issue shares.
 The existence have nothing to do with the member coming in or leaving the company, it
continues as perpetual succession.
TASK 4
Alternative dispute resolution(ADR)
The ADR can be explained as the legal remedy available to the parties to commercial
dispute to resolve it without going to the courts. It s a technique providing out of court settlement
to the disputes. This method provides effective solution to the dispute between the parties
without going to the court. This process is less time consuming and is cheaper as compared to the
litigation process. This is informal in nature which means that the partiers to the dispute can
involve in the process of solving the problem unlike in the court proceeding the parties can not
participate in the trials directly (Alternative dispute resolution (ADR), 2018). The different
method of ADR are:
Arbitration: is the process in which a third impartial party is appointed as the arbitrators
who decide upon the commercial dispute between the parties. The arbitration clause is present in
the business contract and states that in case of dispute between the parties it will be referred to
arbitration (Bachar and Hensler, 2017). The arbitrator considered all the facts and evidences
from both sides and also hears out the stories from both the parties. With this an investigation is
initiated by the arbitrator to identify the facts to the disputes. After all this he/she given an award
which is binding on both the parties. Under the arbitration process the parties lose their right to
appeal in the court against the award of arbitrator.
Mediation: is the method where a third party is appointed as the mediators which is an
unbiased person. The mediator here the facts and try to bring both parties to a point of
discussion also that they can solve the issue without going to the court. This method of does not
provide a decision through a third party rather both the parties come to a mutual decision with
interference of a third party. The decision reached under this method can be made bound on
parties by taking an order from the court over the decision making it binding to parties under
dispute.
Negotiation: is another method under ADR where there is no involvement of a third
party rather parties sit together and negotiate over terms and condition to solve the dispute and
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reach to a mutual decision. Here, also the parties can make the decision bound through the order
from court.
KANGO can select from any of the above alternative to solve the dispute with its IT
suppliers by saving the cost and time spend over the litigation process.
CONCLUSION
To conclude it can be stated that the English legal system is one of the legal framework
of the world. The beaches of law have been identified as civil and criminal one and the highest
authority in cost structure is the court of appeal. The sources of law are act of parliament,
customs and the ruling of decided case laws. The couriers delivering meals to the customers of K
have been recognised as employee of the business as they fulfil all the requirements to be
worker. For this all the condition of employment was checked out and then status of the couriers
have been clearly identified as employees of K. Furthermore, different types of business
organisations have been explained as sole trades, partnership and company and K have been
suggested to form a limited company. Moreover, various method of ADR have been explained
to resolve the dispute with IT suppliers as arbitration, mediation and negotiation.
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REFERENCES
Books and Journals
Manyika, J and et.al., 2016. Independent work: Choice, necessity, and the gig
economy. McKinsey Global Institute.
Burtch, G., Carnahan, S. and Greenwood, B. N., 2018. Can you gig it? An empirical
examination of the gig economy and entrepreneurial activity. Management Science. 64(12).
pp.5497-5520.
Hutchinson, K., 2018. The Story of Small Business. In Leadership and Small Business (pp. 11-3
Kim, J. and et.al., 2015. The contributions of firm innovativeness to customer value in
purchasing behavior. Journal of product innovation management. 32(2). pp.201-213.
Askehave, I., 2017. A Functional Interpretation of Company Brochures-from context to
text. HERMES-Journal of Language and Communication in Business. (21). pp.199-203.
Lee, C. K and et.al ., 2016. Selection and use of Alternative Dispute Resolution (ADR) in
construction projects—Past and future research. International Journal of Project
Management. 34(3). pp.494-507.
Bachar, G. J. and Hensler, D. R., 2017. Does Alternative Dispute Resolution Facilitate Prejudice
and Bias: We Still Don't Know. SMUL Rev. 70. p.817.
Gonçalves, M. C., 2016. Alternative Dispute Resolution in Civil and Commercial Matters in the
EU. In Interdisciplinary Perspectives on Contemporary Conflict Resolution. (pp. 111-127).
IGI Global.
Online
How does a bill become a law?. 2018. [Online]. Available
through:<https://www.parliament.uk/about/how/laws/passage-bill/>.
The Judicial System of England and Wales A visitor’s guide. 2019. [Online]. Available through:
< https://www.judiciary.uk/wp-content/uploads/2016/05/international-visitors-guide-
10a.pdf>.
Alternative dispute resolution (ADR). 2018. [Online]. Available
through :<https://uk.practicallaw.thomsonreuters.com/0-107-6391?
transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1>
.
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Essential-know-how. 2018. [Online]. Available
through:<https://www.rossmartin.co.uk/employers/essential-know-how>.
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