Numan Company: Analysis of the UK Legal System for Business Operations

This report analyzes the UK legal system, providing a comprehensive overview of its structure and key components. It begins with an introduction to the Numan Company, outlining its business model and the legal context in which it operates. The report then delves into the different types of legal s...Read More

Introduction about The Numan Company
- Name: The Numan Company
- Establishment: 2019
- Address: 53 Duke Street London, England W1C, GB
- Field of business: Health, Wellness and Fitness
- Capital: £52.900.000
Numan was founded in 2018 with the aims to solve the problem of erectile dysfunction in males.
Its platform promotes accessible medical remedies and story-telling about health issues affecting
men's self-esteem and lifestyle choices through a brand and story-telling. The company provides
direct-to-consumer medicinal items, allowing customers to regulate their symptoms by
researching alternatives online.
Clifford Chance has hired me as a solicitor to advise new businesses on crucial legislation and
the legal system that they must understand and use. Therefore, I am able to provide Numan with
advice and recommendations to help the firm grow lawfully in the United Kingdom.
1. The legal system
1.1 World legal system
The legal system consists of rules, procedures, and institutions that enable public and private
initiatives to be carried out legally (AdkLaw, 2021). There are four main types of legal systems
as follow:
Civil law (include Socialist law): The emphasis of a socialist legal system is on community and
state property. Civil law systems based on written laws and other legal codes that are constantly
updated. This legal system originated in mainland Europe and has now spread around the world
such as Vietnam, South America.
Common law: The set of unwritten laws known as common law is founded on legal precedents
established by the courts. This legal system began in U.K and now practice in Australia, U.S,
Canada, Hong Kong.
Theocratic law: This legal system is founded on regulations concerning faith and religious
practice. It is mostly practiced in muslim countries and Israel with the source of the Koran.
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Customary law: Customary law systems are founded on established patterns of behavior (or
conventions). This legal system is mostly practiced through Africa.
1.2 Definition of law
A rule of conduct established by the government or society over a certain territory is defined as
law. It is a set of rules that are formed and enforced to govern individual’s behavior (Collins,
2021).
1.3 Function of law
According to Cronos (2019), law has the function of protecting the rights and benefits of
individuals as well as giving a framework and principles to assist in the resolution of disputes
between individual.
1.4 UK Legal system
The United Kingdom is a constitutional monarchy. Queen Elizabeth II currently is the Head of
State, who must be politically neutral. The common law system in England and Wales combines
the enactment of legislation with the development of precedents through case law. The laws are
enacted by Parliament, which consists of the "Monarch," the House of Commons, and the House
of Lords. Besides, the Prime Minister is typically a member of the House of Commons, which is
directly chosen by the people (Bodleian, 2021).
1.5 The court system in the UK
In the court systems of United Kingdom, it can be considered as including 2 branches which are
criminal branch and civil branch.
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It is clear that the House of Lords (the Supreme Court) is the highest, which is the final court of
appeal for all civil and criminal cases in the United Kingdom, including those from England,
Wales, and Northern Ireland (Thesupremecourt.uk, 2021). Then, The Court of Appeal is the
next court in the hierarchy of the Senior Courts of England and Wales, and it hears solely appeals
from other courts or tribunals. In detail, the appeals from High Court will be handled by the Civil
Division, while the appeals from Crown Court will be handled by the Criminal Division
(Judiciary, 2021).
In term of the Criminal branch, almost all criminal court proceedings begin in a Magistrates'
court. For less serious cases, this court will be the first instance court for the above cases such as
minor traffic violations or thief and assault (Judiciary, 2021). However, if there are any appeals
from Magistrates Court, it will be solved and considered through the High Court or the Crown
Court. In the Crown Court, when the Magistrates want to give tougher punishments for the
serious cases of guilty defendant, it could be move on to there. The serious cases include murder,
robbery or rape (Judiciary, 2021).
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Regarding to Civil branch, the civil disputes will be handled by the County Court. For instance,
businesses attempting to recoup money owed to them, personal injury, family matter, etc.
However, with more serious civil cases that worth more than £ 5000, it will be moved on to the
High Court to solve (Judiciary, 2021). In the High Court, every appeals of defendants in the
County Court are dealt with this court. In addition, there are 3 part that is divided from the High
Court as follow:
 Queen’s Bench: The most powerful division which hear the most important criminal
cases in the Crown Court.
 Chancery Division: The Chancery Division is responsible for a wide range of civil
disputes.
 Family Division: In most instances involving family difficulties, this division will hear
them.
1.6 Law and function of law
According to Openedu (2021), Law is a system of rules enacted by state institutions under the
authority of the state to regulate people in society and business. Law is something that citizens
must obey and follow or face penalty or legal consequences.
Although there are variety of purpose that law served, there are four main function of law (Raz,
1979). Firstly, it is the establishing standards determines what sorts of behavior are and are not
acceptable in society. Secondly, the maintaining order is essential for a civilized society.
Thirdly, resolving dispute provides for the mitigation of issues that emerge between people who
have different wants, requirements, viewpoints, and/or values. Lastly, it is the protecting
liberties and rights ensures that each individual is permitted to exercise his or her constitutional
rights, such as freedom of speech, and so on (Upconsel, 2021).
1.7 The differences between two branches of law
Criminal law Civil law
Definition Criminal law is concerned with
conduct that are regarded
threatening or destructive to the
property, safety, or moral well-
Civil law is concerned with
conflict resolution, with the
goal of preventing
disagreements between
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being of individuals or the state. individuals from escalating
into a violent confrontation.
Court Crown court and Magistrates
Court
High Court of Justice and
County Court
Penalty Fines, imprison or death sentence Compensation
(Lumen, 2021)
2. Differences sources of UK law
In UK legislation, there are 8 differences sources of UK law, which are common law, Equity
law, Delegated legislation, Customs, Conventions, Acts of Parliament, European Union Law,
European Convention on Human Rights (ECHR)
2.1 Common law (Unwritten law)
Common law refers to case law created by judges that establishes legal precedents stemming
from disagreements between one person and another (Chen, 2021). This is also known as case-
centered or judge-centered, thus the law evolved on a case-by-case basis. There is a flexible for
the judges to have creative judicial from the previous judgements in the past, otherwise they
must adhere to a precedent-setting framework. As a result, these resources help judges react and
make decisions quickly and flexibly to resolve issues. Moreover, due to founded from the real-
cases or refer to real situations, the law will closer to the daily life and appropriate with during
the development of the society. When there is no authoritative pronouncement of the law,
common law judges have the authority to construct laws by creating precedent.
An example for common law is the case of “R v Wood, 2008”. To specify, the appellant of this
case is Woods, who was an alcoholic. He stayed in the victim’s house after drinking numerous of
cans beer, vodka and brandy. In that night, he awoke in the middle of night and found that the
victim was making unwanted sexual approaches toward him. Then, he lost control and murdered
the victim by hitting him repeatedly with a butcher cleaver. According to the judge, drinking
more than the typical allotment for an alcoholic was not an involuntary act, but rather a voluntary
act of giving in to need. Woods was found guilty of murder (Lawteacher, 2019)
2.2 Equity law
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Equity law is based on old English common law. In detail, the Court of Chancery creates equity
law, which complements, corrects, and controls common law norms (USC, 2021). Thus it aids in
the resolution of the matter by overcoming the inequalities of common law, ensure that the case's
resolution is truly equitable.
An example case for equity law is the case Chappell v Times Newspapers Ltd (1975). In detail,
employees of a newspaper were threatened with dismissal if they did not stop striking, then the
employees asked the court for an injunction to prevent their bosses from carrying out the threats.
However, only if the employees stop striking, they will receive the injunction from the court; but
they refused to do it. Hence, the equity remedy could not be provided since employees
demonstrated their unfairly during the procedure. As a result, the employees were not granted
their injunction (Lawaspect.com, 2021).
2.3 Delegated legislation (Written law)
According to UK Parliament (2021), delegated legislation is the law that enacted by minister or
other bodies in the United Kingdom. Parliament has routinely and extensively delegated to the
Executive Government limited authority to create rules under Acts. Delegated legislation is
frequently administrative in nature, and it may include standard forms, changing in policies of
government and fee information.
One example for the delegated legislation is the Coronavirus Act 2020, which published through
the UK Ministry of Health. The Coronavirus Act empowers all four jurisdictions to take the
appropriate action at the appropriate moment in order to successfully respond to the pandemic's
progress (health-ni.gov, 2021)
2.4 Customs (Unwritten law)
The term "custom" refers to a habitual sequence of behavior observed universally and willingly
by the people. Custom was regarded as one of the most important sources of law in ancient
societies, however, the role of custom as a source of law has declined, while other sources, such
as judicial precedents and legislation, have grown in importance in the modern society (Ankita,
2020).
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For example, the case of Produce Brokers co. vs Olympia oil and coke co. is one of the typical
case for customs law. The court recognized customs as “reasonable and legitimate and for
example, sensible, genuine and impartial men” (Pleader, 2019).
2.5 Convention
Conventions are rules that have evolved over time as a result of tradition and practice, thus it is
an unwritten agreement in Parliament about how something should be done (Parliament.uk,
2021). Conventions play an important role in determining how the state works and regulates.
For example, Instead of the House of Lords, the Prime Minister must be a member of the House
of Commons.
2.6 Act of Parliament
An Act of Parliament is a piece of legislation that has been adopted by both Houses of
Parliament and received Royal Assent. The United Kingdom's Statute Law is made up of Acts of
Parliament taken together (Parliament.uk, 2021).
For example, there are plenty of act the published by the Parliament such as Finance Act 2021,
Consumer Rights Act 2015 or Serious Crime Act 2015, etc.
2.7 European Union Law
European Union law is a set of rules that govern the European Union's member states. EU
legislation is divided into primary and secondary. This law can overrule the national law of UK,
thus since United Kingdom's accession to the EU in 1973, the EU law has become an
increasingly important source. EU law encompasses a wide range of issues, including
agricultural and competition law (EU Law, 2021). However, at the end of 2020, The United
Kingdom has left the European Union, which was also known as “Brexit” and not be influence
under the law of EU (Legislation.uk, 2020).
For example, during the period as a member of EU, UK had to follow the European
Communities Act 1972, which is a set of economic and social legislation and rules
(Legislation.uk, 2020). However, during the period of Brexit, the UK has to make several
decisions and negotiate the terms of its future relationship with the EU. For instance, the
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European Union (Withdrawal Agreement) Act 2020 lays forth the terms of the United Kingdom's
withdrawal from the EU (Legislation.uk, 2020).
2.8 European convention on Human Right (ECHR)
The European Convention on Human Rights (ECHR) safeguards people's human rights in
nations that are members of the Council of Europe (Equalityhumanright.com, 2021). In detail,
the Convention has been signed by all 47 Council members, including the United Kingdom. The
entire name of the convention is the 'Convention for the Protection of Human Rights and
Fundamental Freedoms.' When applying into the legislation of UK, it includes in the Human
Right Act (1998).
For example, The UK's Working Time Regulations, which implemented the EU Working Time.
According to Act 6 of the Working Time Directive, the maximum working hour weekly of
workers is 48 hours. As a result, in Part II of The Working Time Regulations (1998) of the
United Kingdom requires that a worker's working time not exceed an average of 48 hours per
week (legislation.uk, 2021)
3. Role of government in law-making and the application of statutory and common
law
3.1 Role of government in law-making
The process of law-making in UK has nine stages, in which government play an important role
in each stages as follow:
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Initial interest is the first step of the whole process. This is the time when the government is in
charge of preparing documents outlining the nature of the law that will be adopted. After that, it
will be documented in a Green or White paper. Besides, interested parties are asked to provide
feedback on the recommendation of the draft.
The Draft Bill is the second step, where the government will work with the lawyer from the
Parliamentary Counsel Office to draft the bill before formally presented to Parliament.
The first reading is the third step. Government has a job of introducing the bill in the House of
Commons. Furthermore, the government is in charge of determining the date for the second
reading as well as promoting the Bill so that all parties and the general public can see it.
The second reading is the fourth steps, where there is a meeting held by the government in order
to debating and discussing about the bills with the Parliament members. If there is no debate and
discussion of the MPs or Lord, it will be moved to committee stage. Every discussion and
debating process will be recorded by the government.
The next step is committee stage. There is a significant discussion about the Bill by the
government, then the law will be thoroughly reviewed. Therefore, the government will have the
authority to amend and modify numerous drafts.
In the report stage, the bill will be returned from the committee stage and the government has a
responsible to present the draft to the House for discussion, recommendations as well as further
amendments.
During the third reading stage, this is the last chance for each House to discuss and debate with
others. Then the government will send it to the House of Lords
In the House of Lords stage, the draft bill will be presented to the House of Lords by the
government for amendments. If they make amendments, government have to present them back
to the House of Commons for reconciliation. When there is an agreement between the House of
Lords and the House of Commons, it will be presented to the Queen.
The last step is the Royal assent. The Bill will become law after it has been approved by the
Queen. The government is responsible for disseminating the law to all residents of the country.
3.2 Application of Statutory and Common law
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3.2.1 Statutory law
Definition: Statutory law is defined as law enacted by Parliament in the form of legislation.
Therefore, UK prevail the statutory law over the commons law due to the power to make and
adjust law of Parliament. All Acts begin as bills introduced in the Houses of Commons or the
Houses of Lords. A bill becomes statutory law when both Houses and the Monarch agree on it.
Acts are referred to as "primary legislation" since they are not subject to the authority of any
other legislative body (parliament.uk, 2021).
The application of statutory law:
Act: Factory and Workshop Act 1878
An example for this act is the case named Groves v Lord Wimborne (1898). The plaintiff was a
boy who worked for the defendant. A steam winch with whirling cog-wheels was among the
machinery in the works, which were dangerous for people working there, and the plaintiff
worked on it. While the plaintiff was working, his right arm got caught by the cog-wheels due to
no protection of fenced, and he was so badly hurt that his forearm had to be amputated. The
Court of Appeal stated that the employer had violated the duty to maintain fencing for dangerous
machinery of the Factory and Workshop Act 1878 s.5 (LawTeacher, 2019)
3.2.2 Commons law
Definition: When the statutory law is not sufficient and appropriate to apply in any case, the
commons law will be used. This is due to the fluid manner in which judges interpret the law by
applying their knowledge of legal precedent and common sense to the facts of the case they are
hearing. The common law is based on judgements made by judges in long-ago criminal cases
(Elliott, 2021). It allows judges to actively participate in the development of legal norms. The
court's verdict will be based on earlier case decisions and comparable nature to provide right
rulings in current instances.
The application of commons law:
Case name: Ryland and Fletcher (1868)
In the case named Ryland and Fletcher (1868), plaintiff owned and operated a mine near which
defendant built an artificial pond. However, the latter resulted in a mine shaft collapse, which
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generated a flood and harmed plaintiff's operation. The plaintiff filed a lawsuit, and the case was
heard by an arbitrator who determined the facts independently. The trial court ruled in favor of
plaintiff, while the defendant requested a hearing. As a result, the defendant had been judged that
The Defendant's use of the land was improper, was carried out without due prudence, and caused
harm to the Plaintiff (LawTeacher, 2020).
In 1994, there was a case that had been judged based on the case of Ryland and Fletcher (1868).
In detail, it is the case of the National Rivers Authority (NRA) and Anglers Co-operative
association v Clark (1994). In this example, a pig farmer (Mr Clarke) dumped three million
gallons of slurry into a 75-kilometer section of the Sapiston and Little Ouse rivers, destroying a
fishery. Mr Clarke was sued in civil court by the NRA and the Anglers Association, who were
representing the interests of the local angling club. As a result, the civil action lawsuit was
successful, the defendant got fine and the NRA was granted £90,000 in legal expenses, as well as
£8,450 in damages to investigate the extent of the damage and restock the fishery (LawTeacher,
2020).
4. Evaluation of the effectiveness of recent reforms of the legal system (M1)
In the legal systems of UK, there is a reform in the Equality Act 2006 and the Equality Act 2010.
To specify, in the Equality Act 2006, direct discrimination occurs when one individual is treated
unfairly because of a protected attribute, which is only applied to race, religion or belief and
sexual orientation. Meanwhile, in the reform of the Equality Act 2010, the direct discrimination
is also applied to sex, disability as well as gender reassignment (GEO, 2020).
The new reform of the Equality Act 2010 brings back many benefits for the employer and
employee. In detail, it extends protection against direct discrimination to more kind of
characteristics, thus more people will be protected through the legal. Moreover, this new reform
also provides better environment, where all people with different characteristics can receive fair
and transparent treatments and policies.
However, there will be some limitations in the reform of the Equality Act 2010. In detail, the
recruitment and remuneration polices of company will be changed appropriately with the new
regulations. In addition, the training programs of company must have some changes in the ways
they educate and treats the employees, which ensuring that person will not take disadvantages in
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working and training. As a result, the company have to deal with the higher cost in these
processes and the employers will have more responsible in having quick and appropriate
responds and take actions to any reports or complaints related to the discrimination in the
workplace.
In short, the reform of the Equality Act 2010 is a good one. Although the employers will have
some complicated tasks and changes in short-term, the working environment and the behaviors
of employee in the company will improve better in the long-term. Employee tend to stay longer
with the company who care about their benefits as well as the guarantee for their rights.
Therefore, both of employers and employees will benefits from this reform; employees get the
protections and employers get the valuables and the contributions of employees in long-term
period.
5. Potential implications of law on the business
5.1 Company law
Overview: The Companies Act of 2006 establishes a specified regime with which companies
registered in the United Kingdom, as well as foreign companies wanting to operate in the United
Kingdom, must comply. The 2006 Act is comprehensive and includes practically all of the law
that applies to businesses. Its criteria are not static and are updated on a regular basis. This is
often accomplished through the use of rules known as statutory instruments, which are subject to
a softer legislative procedure than Acts of Parliament. (Croner, 2018).
 Regulation
According to the Company Act 2006, Part21A, chapter 2, section 790E, it stated that the
company has a duty of keeping information up-to-date. To specify, the company is required to
give a notice if some person no longer qualifies as a registrable person in the company, or any
other change that happens as a result of that person's information in the PSC register being
incorrect or incomplete. Moreover, company have to give the notice as soon as reasonably
practicable or finish it before the period of 14 days from the starting day of the event.
 Impact
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The regulation has impacted to the company to prepare a notice when there are occurred any
changes in the human resources of the executive department. The company have to do and finish
it as soon as possible to avoid the outdated information and sending erroneous information to the
shareholders, employees and the government.
 Penalty
According to the Company Act 2006, Part21A, chapter 2, section 790F about the penalty on the
company do not comply with the information duties, on conviction on indictment, a person guilty
of an offense under this section faces imprisonment for a term not exceeding twelve months or a
fine (or both). In reality, on 2 July in 2018, a company named Noble Design and Build of Telford
had fallen to comply with an Information Notice. They were fined £2500 for not public the
information of one member of the Board left the company (ICO, 2018)
 Applying in Numan company
This legislation regulated Numan to present and update all the information in time. Any
information about the changes of registrable person or a registrable relevant legal entity with
respect to a company must be updated through a notice and timely, if not the company and the
management will be fined or even faced imprisonment. Therefore, the HR of Numan must have
some adjustment in the division of works and tasks for each employee, manage some people to
take the responsibility of update information, produce notices and public it timely. In case of the
company has a problem with the updating data timely and correctly, the management and the one
taking responsible for this task will be fined from £2500 to £10000 or get imprisonment for a
term not exceeding six months to twelve months (ICO, 2018).
5.2 Contract law
Overview: Contract law is the body of law that governs the rights and duties of the contractual
parties. It oversees the relationship, legality, and interpretation of a contract between two or more
people (individuals, businesses, or other organizations) for the sale of products, the provision of
services, or the exchange of interests or ownership (Laver, 2020). The contract law includes Sale
of goods act 1979, The Supply of Goods and Services Act 1982, The Consumer Contracts
Regulation 2013 and The Unfair Contract Term Act 1977.
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In the Sale of goods act 1979 have changes made to the activity of signing and selling items
between businesses
The Supply of Goods and Services Act 1982 governs contracts for the transfer of property in
commodities, certain contracts for the hire of goods, and some contracts for the provision of a
service; and for related purposes
The Regulations require extensive information to be provided to customers, as well as a 14-day
cancellation time.
The Consumer Contracts Regulation 2013 assures certain customer rights in terms of product or
service information, cancellation, and additional charges.
The Unfair Contract Term Act 1977 controls contracts by limiting the extent to which one party
can avoid liability through the use of exclusion provisions such as disclaimers. It protects the
weaker contracting party from exploitation and establishes minimal rights that may not be
waived.
 Regulation
According to the The Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013, part 2, chapter 1, section 13, it requires the company have to provide what
information needed before making a distance contract with consumer (legislation.uk, 2021). In
detail, the trader must provide or make available to the customer in a clear and understandable
way the information mentioned in Schedule 2 (Information relating to distance and off-premises
contracts) such as the main features of the goods and services, address of the trader, total cost of
the goods and services, other cost incurred while delivering or packaging and the agreements for
payment, delivery, performance, and time.
 Impact
The regulation has a huge impact on both the trader (company) and the consumer by protecting
the rights and benefits of consumer during the process of making contract through the Internet, e-
mail order or telephone. The trader (company) have to prepare detail and comprehensive
information that related to the products or services that they will provide to the customer.
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Moreover, it also helps the products and services of company easier meet the needs and wants of
consumer, which can benefit for company to have more contracts and new consumer as well.
 Penalty
According to the The Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013, part 2, chapter 2, section 19, it states that If a trader enters into an off-
premises contract to which regulation 10 applies but fails to provide the consumer with the
information specified in Schedule 2, they will face up with a fine based on 5 level of standard
scale from £500 of level 1 to £10,000 of level 5. Moreover, the contract or order will have no
valuable and not bind the consumer if there are any costs and fees incurred.
 Applying in the Numan Company
The Numan Company followed the Consumer Contract Regulation 2013. This legislation
regulated Numan in providing information about the products and services, which are medicine,
supplement and medical treatment for erectile dysfunction, hair loss and nutritional deficiencies
for consumers. Due to the affection of social distancing of COVID-19, most of the contracts of
company were made through the Internet or E-mail, thus the process of giving comprehensive
information related to the therapy of each health problems, uses, dosages and side effects of each
drug of company. In addition, it also has influenced the designing of the online website, which is
one of the first way that consumer can access and understand the effectiveness and quality of the
products and services. In fact, Numan has spent some of their money into developing their
website information as well as brand development (Onevisionhealth, 2021). However, in case of
the Numan makes mistakes in giving detail and comprehensive information to consumer, the
company totally have to deal with the fines based on the standard scale from level 1 – level 5 of
the regulation.
5.3 Employment law
Overview: The UK Employment law establishes a legal framework for the protection of
employee’s rights as well as the safeguards for employers, keeping the fairness relationship
between employer and employee (Gordon, 2021). These law includes Termination of
employment, Wrongful dismissal, Redundancy, Unfair dismissal, Constructive dismissal,
Equality in the workplace.
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In the Termination of employment, when any side terminates the contract, the law requires both
the employee and the employer to provide notice of termination.
The Wrongful dismissal occurs when the employee is dismissed by the employer without
reasonable notice.
In the Redundancy, when employer fire an employee because they no longer require them to
accomplish their job. It occurs when employers are forced to decrease their workforce.
Unfair dismissal occurs when an employee is fired in a harsh, unjust, or unjustified manner.
Constructive Dismissal occurs when an employer commits a major violation of contract, entitling
the employee to resign as a result of the employer's actions.
The Equality in the workplace is the fair treatment with people in the workplace regardless of
Gender, race, age, sexual orientation, nationality, disability.
 Regulation
According to the Equality Act 2010, Part 2, Chapter 2, section 26, it aims to protect employees
from sexual harassment in the workplace. In detail, it states that which actions is considered
illegal such as person A harasses another person B in sexually inappropriate behavior or due to
B's rejection or acquiescence to the conduct, A treats B less favorably than A would have treated
B if B had not rejected or succumbed to the activity. In addition, it also mentions the actions has
the purpose of violating the dignity of B or creating an intimidating, hostile, degrading,
humiliating or offensive environment for B (legislation.uk, 2021).
 Impact
The regulation has a significant impact to the operation of the company. The management has
forced to have an action to prevent and protect employees from the sexual harassment in the
workplace like setting new rules, caring more about the complains and issues about harassment
of employees. In addition, the management also have to take their responsibility if there are any
harassment done by anyone in the workplace. By taking this regulation seriously, the company
can provide safety workplace and stop the unacceptable behavior as well as giving employees
confidently to raise their issues.
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 Penalty
If it is proven that someone has harassed someone at work, they will have to punishable by a fine
of up to £5,000 or six months in jail (legislation.uk, 2021). If the harassment has a significant
impact in the mental and physical health of the victims, there can be imprisoned for up to 5
years, and/or an unlimited fine. For example, in 2017, a teacher named Joanne was sexually
harassed and became a victim by a new Head of Department by regularly smirking at her and
stroking her shoulder. In addition, he also sent inappropriate emails with sexualized photographs
of children to Joanne. As a result, he got the fine of £10,000 to the injury of Joanne and the
sexual harassment activities of him (Martin, 2017).
 Applying in Numan Company
The Numan Company has followed the Equality Act 2010. In detail, the management of Numan
has implemented a reasonable steps system, which includes training, policies, and a proactive
strategy. The company has design and develop their Code of Conducts in the company, which
includes the sexual harassment and other discrimination activities. Based on their rule, if there
are any wrong activities that violate the regulations reported by employees, the management will
immediately determine and take it seriously, thus can fairly make a penalty and protect the
employees.
According to the Code of Conducts of Numan, if the employees had the harassing conduct in the
workplace, they will not get any bonus and commission of that months, go along with the 40%
reducing in the income of the whole months. In addition, that activities also being mention
during the monthly discussion of the whole department. Besides, if the act of violate the
regulations has serious consequences and is repeated continuously, Numan will immediately take
action.
6. Explanation and differentiation of standards (M2)
Legislation Regulation Standards
Definition The legislation is the
power and function of
making regulations (such
A competent authority
enacts and enforces a rule
or direction. When it is
Provide a consistent means of
guidelines or rules that must be
followed. It could take the
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as laws) that have the
force of law because they
are promulgated by an
official organ of a state or
other entity (Britannica,
2021)
implemented, it becomes
law and must be followed
(Britannica, 2021).
shape of a reference that
provides precise information
and, when used on a regular
basis, assures effective quality
(Britannica, 2021).
Created by Parliament Government Government
Purpose To preserve the interests
of individuals with
influence over state
forces, as well as to
impose regulations on
state agencies.
To secure the agency's
income by encouraging
the efficient arrangement
and organization of the
equipment.
To define the technical details
so that legislation can focus on
long-term policy objectives.
Example Section 175 of the
Companies Act 2006:
Duty to avoid conflicts of
interest
The directors of Numan
must avoid situations in
which they have, or may
have, a direct or indirect
interest that conflicts, or
may conflict, with the
company's interests.
When a person is promoted as
a director of Numan, they have
the responsible of contributing
values and benefits for the
whole organization instead of
exploiting the interest of the
company through the collusion
with other parties or
employees for self-interest.
Potential
impact
These regulations influence the behavior of the management members in the company to
have responsibilities with the company. The Code of Conducts and Common
Regulations applying in the workplace should be developed and changed timely and
appropriately to harmonize the interest of everyone, even the leaders group. In addition,
the notice about these regulations will be published for every employees and employers,
go along with it is encourage employees to detect and denounce behaviors that affect the
interests of the company by the management through reward policies.
Due to that regulations, the whole company will have to consider clearly and deeply
about the characteristics, personality, abilities and histories of the person who is applying
19

for the management position. Moreover, they have to spend time and money in order to
improve the regulations of company to notice and punish the wrong behaviors of the
managements. As a result, the leadership will gain the trust of the employees, thus
improve the productivity in company as well as gaining the respect and credibility of
other suppliers and partners.
Any wrong behaviors related to the benefit of the company of the leader group will be
subjected to punishment and criticism to varying degrees. Based on the consequences
and the agreements of other leader members and employees, the punishment is from
cutting salary from 3-12 months to pay for all mistakes and immediately dismissal that
directors.
20

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