Week 10 company law

Employment Status

The classification of an individual's relationship with an organization in the context of employment law, determining rights and obligations.

Sources of Employment Law

Common law, statutes like the Employment Rights Act 1996, and directives from Europe influencing UK employment law.

Employment Disputes

Conflicts between employers and employees regarding rights, obligations, or terms of employment, requiring legal resolution.

Employee vs

Employee works under a contract of service with full employment law protection, while an independent contractor works under a contract for services with more autonomy.

Test of Employment

Criteria like control, integration, economic reality, and mutuality of obligation used to determine if a person is an employee.

Workers vs

Employees have full employment law protection, while workers have fewer rights and protections, with distinctions in the relationship, legal protection, and termination rights.

Statutory Notice Period

Minimum notice periods under the Employment Rights Act 1996 based on the length of service, with the option for longer notice periods by agreement.

No Notice Required

Circumstances where no notice is needed, such as gross misconduct or serious breach of contract leading to immediate termination.

Dismissal Claims

Legal actions by employees for unfair dismissal, including wrongful dismissal, unfair dismissal, and constructive dismissal claims.

Wrongful Dismissal

Occurs when an employer dismisses an employee without proper notice or breaches the employment contract, leading to potential legal action.

Unfair Dismissal

Employee dismissal for unjustifiable reasons or handled unfairly by the employer, covered by specific criteria in the Employment Rights Act 1996.

Derogatory Comments on Social Media

In the case of Crisp v Apple Retail UK Ltd (2011), posting negative remarks about the employer online led to dismissal, emphasizing the impact on the company's reputation.

Breakdown in Working Relationships

Ezsias v North Glamorgan NHS Trust (2011) highlighted that strained relationships at work can be a valid reason for dismissal under "some other substantial reason."

Automatically Unfair Reasons for Dismissal

Include family reasons, health and safety concerns, trade union activities, flexible working requests, whistleblowing, and accompanying workers to disciplinary hearings.

Band of Reasonable Responses

Refers to the standard used to assess the reasonableness of an employer's actions leading to dismissal, allowing for a certain degree of discretion in decision-making.

Remedies for Unfair Dismissal

Include reinstatement, re-engagement, and compensation (basic and compensatory awards) to compensate for financial losses.

Constructive Dismissal

Occurs when an employee resigns due to a fundamental breach of the employment contract by the employer, leading to potential unfair dismissal claims.

Conditions for Constructive Dismissal

Established in Western Excavations (ECC) Ltd v Sharp (1978), requiring a breach of contract by the employer, resignation following the breach, and resignation due to the breach.

Redundancy

Arises from workplace closures, reduced need for specific work, or organizational changes, leading to potential redundancy payments and unfair dismissal if not handled properly.

Redundancy Procedure

Involves consultation, fair selection criteria, redundancy payments, legal compliance, and ensuring fairness and reasonableness throughout the process.

Consultation and Selection in Redundancy

Employers should explain reasons for redundancy, explore alternatives, and use methods like Last in, First out (LIFO) or points-based systems for fair selection.