The businesses as well as
employment must follow certain rules and regulations so that things can be in
order for every stakeholder and there is no confusion that how processes will
be completed or finished. There are many business areas, which needs to be
understood by business organisations that how they can deal with their
employees, trade unions as well as any relevant aspects keeping the state’s
rules in view. Otherwise, there would always be mess and things will never be
in order. It is not that business and employment law is important for keeping things
in an order, but they are also required for organisations to ensure that they
make proper contracts, set relevant and important terms & conditions so
that employees cannot file any case against them in any given terms.
The first important area of
business and employment law is employment contracts. In UK, it is mandatory for
an employer to come up with a written contract, when employment period exceeds
one month, and written contracts must be presented in first two months of
employment. The other crucial aspect of business law is protecting relevant
interest of the organisation and business. The business has to protect its
intellectual property as well as confidentiality of its business. In terms of
employment law, the most important area of concern for employees is the aspect
of unfair dismissal. In UK, if employee has served two years in an organisation,
only then he can go for unfair dismissal claim. But there can be exceptions as
well for every individual case. One most important aspect associated with business
and employment law is the issue of Discrimination. The law does not allow any
business organisation to discriminate with its employees on any given reasons
like discriminating on the basis of age, gender, pregnancy, disability,
ethnicity, religion, race, as well as sexual orientation. The last but not the
least, personal data is another critical area related to business and
employment law. The employers have to follow General Data Protection
Regulations (GDPR) guidelines that how data of employees will be managed, used,
processed and protected. It is important to mention here that these are few
areas of business and employment law, and there can be many for various cases
and situations. Even sometimes new issues arise before the court to decide that
how certain issue should be resolved (Lobel, 2018)
Understanding different Aspects of Business and Employment Law with
Real World Examples
The business and employment law
is such a vast area of study, because there are so many rules, regulations,
laws as well as issues are associated with it. In most cases, the essence of
business and employment law becomes very complex and things do not go as
smoothly, as they may look by reading a certain law. It means that one may
think that a contract has been signed with the relevant terms and conditions,
and now if anything would go wrong, it will be sorted out with the help of
terms mentioned in the contract. But things are not that easy in practical
world, because one claim is made, they need to be proved right in front of the tribunals
and courts to get the decision in favor. It means that it won’t be an easy task
for either employee or employer to deal with any breaches, claims etc, as
things get complex in these legal issues. So, it is important to look at
different areas of business and employment law and then relevant real world
cases should be referred to understand that how things happen in the practical
terms. Each area of concern with relevant example will help to understand that
how things look in real business world other than things written in the law
books.
The first aspect will be
regarding employment law and the selected area of concern is the minimum wage. It
is important for UK employers to understand that when someone turns 16 years
old, then he/she is covered under the law of National Minimum Wage, and if age
bracket starts from 25 years old, then an individual will be entitled for the
National Living Wage. There is also a category of people, who are not entitled
for National Minimum Wage including volunteers working for any charity,
directors of the company, armed forces’ members, individuals less than the age
of 16, prisoners, share fishermen, people from the religious community, as well
as self-employed individuals etc. (www.gov.uk, 2019).
To understand that how things work
in real world, here is an example of a real case of minimum wage on Best
Connection Group v HMRC. Best Connection Group was involved in the business as
an employment agency, providing workers to organisations. They had a contract
with a warehouse to provide around 1500 to 2000 employees on weekly basis. In
2016, HRMC started an investigation in month of January that what kind of pay
rates is being provided in the warehouse. The investigation found that workers
of the warehouse were being underpaid and two reasons were provided for that,
which explained that they were being underpaid for being late, but it was also
found that security searches were involved taking time of the workers. It was
found that collective weekly pay of the workers not equal to National Minimum
Wage. Best Connection Group has to go through the data of 6500 workers to see
what has happened. HRMC told Best Connection Group that they will have to pay
the underpayment amount to workers and they will also have to pay penalties as
well. 13 notices were issued by HRMC for underpayment, and amount for
underpayment was £469,274, and penalties amount was £263,629. Best Connection
Group appealed in the court against the HRMC penalties with an argument that
HRMC is not entitled to send multiple notices etc. But appeal was rejected and Best
Connection Group was asked to pay penalties as HRMC was found entitled to sent
multiple notices under the NMW (Casemine.com, 2017)
The other major area of concern
in business and employment law is inequality and discrimination. The employees
working in UK should know that they are protected against any kind of
discrimination made by an employer against them. The employees are protected
for various types of discrimination at work such as redundancy, recruitment,
training, transfer & promotion opportunities, pay, rewards, benefits,
employment terms and dismissal. Moreover, it is also explained in the law that
employers cannot discriminate with employees on the basis of disability. If
someone is disable, and working in any organisation, his rights are equal to
the normal workers. Moreover, it is obligatory for employers to provide
reasonable facilities by making an adjustment to facilitate disable employees. The
inequality and unfair treatment of employers is also protected by the law, and
one can refer to the rules and regulations provided by the UK government. So,
if any of their right is violated under the aspect of discrimination, they can
file cases against the employers on the basis of relevant employment laws (GOV.UK, 2019)
One such case of discrimination
happened in 2014, when poster girl of Metropolitan police won her
discrimination case against the Metropolitan police. The case was presented
before the Employment Tribunal (ET) in which PC Carol Howard claimed that Met
Police and her Boss has been discriminating with her on the basis of sex,
marital status as well as race. She also told the tribunal that she was also
harassed as well as victimized by his boss in so many ways. She also told the
tribunal that concern people, who had to hear my complaints, they were not
cooperative too, and she kept facing so many difficulties and she was mentally
disturbed due to this unfair treatment and discrimination. The case was
investigated and it was found by ET that claims made by PC Carol Howard were
true, so tribunal asked the Met Police to pay £25,000to the claimant, because
she was mentally injured by all this situation (Croner-i Ltd, 2014)
Conclusion/Recommendations of Business and Employment Law
After analysing various elements
of the business and employment law, it can be said that this is vast area to analyse
and study for all stakeholders including employees, employers, legal advisers,
courts etc. It can also be said that employees and employers, both should understand
relevant business and employment laws; otherwise things can get worst for them,
when issues come across. Looking at the cases and real world examples, it is
recommended to both employers and employees that before making any decisions,
writing employment contracts, dismissing employees, or employees going for any
claims, they must understand relevant laws so that they can fight their cases
in a better manner. If any party would not know the rules and laws, then they
won’t win their disputes and claims.
References of Business and
Employment Law
Casemine.com,
2017. The Best Connection Group Limited v HMRC. [Online]
Available at: https://www.casemine.com/judgement/uk/5b444c892c94e050012d87f0
[Accessed 5 July 2019].
Croner-i
Ltd, 2014. Howard v Metropolitan Police Service (2014). [Online]
Available at: https://app.croneri.co.uk/law-and-guidance/case-reports/howard-v-metropolitan-police-service-2014-employment-tribunal-case
[Accessed 5 July 2019].
GOV.UK,
2019. Discrimination: your rights. [Online]
Available at: https://www.gov.uk/discrimination-your-rights/discrimination-at-work
[Accessed 5 July 2019].
Lobel,
B., 2018. Five areas of employment law small businesses must be aware of. [Online]
Available at: https://smallbusiness.co.uk/employment-law-small-businesses-must-be-aware-of-2544687/
[Accessed 5 July 2019].
www.gov.uk,
2019. The National Minimum Wage and Living Wage. [Online]
Available at: https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage
[Accessed 5 July 2019].