INTRODUCTION TO BUSINESS LAW

Employment Rights Act (ERA)

1996

EMPLOYMENT LAW

• Law that regulates relationship between employers and employees

• Governs what employers can expect from employees

• What employers can ask employees to do

• Employees’ rights at work

WORKERS

• Employed on part time / casual agency basis

• Contract of service does not entitle them to sick pay , holiday pay and other benefits

• they may not claim unfair dismissal

EMPLOYEES

• Contract of service entitles them to full range of employment rights

• Sick pay , holiday pay

• Right to claim for unfair dismissal

INDEPENDENT CONTRACTOR

• Providing services to a company but is not a employee or worker of the company

• Not obligated to accept work offered

• can assign someone else to do work on their behalf

EMPLOYER

• Person / company / organisation that hires another person

• pays employee a salary or wage

• has the power to control the employee’s work duties

• employs and supervises an employee

EMPLOYMENT LAW

• Business may be served both by its own workers and employees under a contract of service

CONTRACT OF EMPLOYMENT

• Employer offers employment

• Employee accepts the offer of employment

• Business agreement where both parties are presumed to intend legal relationships

EXPRESS TERMS

• Specific conditions in an employment contract that both parties agree to and are usually written down.

• Outline the legal rights and responsibilities of both the employer and the employee

• Employees’ pay working hours etc

• Agreed by both parties themselves - can be written and verbal

• ERA 1996- requires employer to provide an employee with a written statement of prescribed particulars of their employment within 2 months of their commencemenrt

DUTIES OF EMPLOYER

• Pay reasonable remuneration

• Take reasonable care for the safety of their employees

• Give reasonable notice of termination of employment

• Maintain mutual co-operation , trust and confidence

• provide truthful references

EMPLOYEES ENTITLEMENT

• Employee is entitled to a minimum living wage , under the minimum wage act

• Max hours of work required are 48 hours a week on average

• Normally averaged over 17 weeks

• Under 18’s cannot work more than 8 hours a day and no more than 40 hours a week

STRUCTURE OF THE COURT SYSTEM RELATION TO EMPLOYMENT

EMPLOYMENT LAW

• Considered civil law

• claimant can sue a defendant in a civil court

• Claimant can be an employee, former employee or unsuccessful job applicant

EMPLOYMENT TRIBUNALS

• Main forum for resolving disputes between employers and workers

WHAT HAPPENS IF DISPUTES NOT RESOLVED AT TRIBUNALS

• They are appealed in other courts of higher jurisdiction

CONTROL TEST - EMPLOYMENT STATUS DETERMINATION

• Employer has a degree of control over the work

• Including how its done , when and where it’s done

INTEGRATION TEST - EMPLOYMENT STATUS DETERMINATION

• Is the work done as an integral part of the business?

ECONOMIC REALITY TEST

• How far is a person in business on his own account?

MUTUALITY OF OBLIGATIONS TEST?

• Employer obliged to provide work and the employee obliged to accept it ?

SUMMARY DISMISSAL

• Immediate termination of an employee due to their behaviour

• Basis of which is gross misconduct

WRONGFUL DISMISSAL

• Where an employer breaks the terms of an employee’s contract in the dismissal process

• Usually concerns notice period and whether the employee was given advance notice of termination

CONSTRUCTIVE DISMISSAL

• Occurs when an employee resigns as employer breached their contract of employment

• Things such as : cutting wages , unlawful demotion , unfair increase in workload , unsafe work conditions

UNFAIR DISMISSAL

• Dismissal that occurs when an employer terminates an employee’s employment without a fair reason

MINIMUM NOTICE PERIOD

• Up to 1 month in employment - no notice is required

• One month to 2 years’ employment - one week’s notice

• 2 years to 10 years employment - 1 week notice for every year completed

• Over 10 years’ - 12 week’s notice

UNFAIR REASONS FOR DISMISSAL

• Pregnancy

• Joining / Not joining trade union

• Family

• Whistleblowing

REASONS FOR FAIR DISMISSAL

• Capability

• Conduct

• Redundancy

• Statutory bar

• Other substantial reasons