• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Employment Law

Extracts from this document...


Employment Law 2008/9 Q.2 An economic downturn has far reaching consequences for employers and employees alike, in particular the motor trade is feeling the pinch of our current crisis. In this essay we will advise Barry, the newly appointed Managing Director for Zephyr Autos (ZA), of any legal issues the Company faces as he decides to introduce changes affecting the workforce, the forced redundancy of a sales representative (Albert), and the legality of his dismissal of a Senior Sales Director (Denise) for gross misconduct. The first problem we shall look at is that under pressure from Head Office Barry decides to implement changes to the terms of the contract of employment, including a pay cut without the approval of the UCW, this would mean an abandonment of any collective agreements with the union and a variation to the employment contract of the individual employee's. It is common place in the auto industry where a section of the workforce belong to a union, that the union negotiate provisions such as pay, hours and holiday, intended to be included in the contracts of the employees who are covered1. The first issue we will examine are the rules of collective agreements, the legality of which is defined by s.179(1) TULRCA 19922states: A collective Agreement shall be conclusively not to have been intended by the parties to be a legally enforceable contract unless the agreement - (a)is in writing, and (b) ...read more.


This leaves the only practical remedy open to the court as an award of damages, a wrongfully dismissed employee is entitled to damages equal to his wages or salary during his notice period19, as for damages under other headings such as loss of reputation or stigma, the courts are reluctant to agree to such awards as was seen in Addis V Gramophone Co Ltd20, however an altering of this position came about in Malik v BCCI SA21 where the employee could not obtain alternative employment due to the 'stigma' associated with his employment at BCCI. The most obvious distinction between cases of wrongful and unfair dismissal is that the former is decided in the civil courts and the later in a tribunal. In order for an employee to bring an action for unfair dismissal22, they must first ensure they meet the qualifying criteria; they must be an employee, have been continuously employed for one year or more23, not be employed by the police or armed forces, and be employed in Great Britain. The statutory protection afforded to an employee once they qualify to bring a case is potentially a "more powerful way of challenging bad employer practices"24. As we have shown an action brought for wrongful dismissal is based on the grounds of breach of contract, whereas an action for unfair dismissal gives the employee an opportunity to actually challenge the fairness of the decision to dismiss. ...read more.


This being said Denise could still bring an action for wrongful dismissal, and claim a repudiatory breach for not receiving the required notice period. In order to survive a claim for breach Zephyr Autos would have to show that they had fair and reasonable grounds for the gross misconduct. The legal issues Barry now faces as the Managing Director of Zephyr Auto's are as follows. In relation to the reduction of pay ZA could face unfair dismissal claims on the grounds of constructive dismissal, unless he provides a statement not later than one month after the change37. In the event that any of the employees refuse to accept the change, Barry would then have the option to dismiss and pay the required statutory notice period. As we have shown the dismissal of Albert on grounds of redundancy, which has a possibility of a claim for unfair dismissal, Barry would be advised to draft a clear document stating the reason for Albert's selection and his unsuitability for employment elsewhere in the group. Barry is legally obliged to pay Albert the statutory redundancy payment under s. 135 ERA 1996. The dismissal of Denise however raises fewer legal issues as she does not have the qualifying minimum of continuity in order to receive the benefit of statutory protection, in order to counter a claim of wrongful dismissal for gross misconduct, Barry would be advised to gather all evidence against Denise, in order to substantiate his claim of her misconduct. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Employment Law section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Employment Law essays

  1. Marked by a teacher

    Critically assess how effective employment law is as a means of altering social attitudes.

    4 star(s)

    undoubtedly these measures are useful provisions that have helped women retain and acquire employment, as well as encourage women to seek employment in areas that they may not previously have done so. However, the SDA 1975 is concerned with equality of access, not of outcomes and firmly embeds the 'merit' principle.

  2. Legal Report Writing Exercise In no more than 1500 words write a legal report ...

    Conduct such as gross misconduct and dishonesty etc. is recognised as grounds on which an employee may be summarily dismissed (9). The conduct must be such that it destroys the basis of trust between the employee and employer for it to justify summary dismissal (10).

  1. The essay will seek to examine and conclude if Trade Unions, in a twentieth ...

    of terms and conditions agreed by representative Trade Unions, but through the eyes of the law. A perfect illustrative example is the National Minimum Wage Act 1998 (NMA), when governing pay. In 1998 the then Labour Government introduced the legislation and ensured that each employee regardless of age, gender or occupation received a base level of pay.

  2. Employee Status - In order for Carl to be able to bring a claim ...

    It is therefore submitted that Carl is an employee. Unfair Dismissal: In order to establish unfair dismissal, a number of requirements have to be satisfied: the claimant has to have been dismissed; the claimant must have the right to claim for unfair dismissal; the real reason for the dismissal must

  1. This essay will consider the growth and history of agency workers rights in the ...

    In this case the worker had worked for a company and then had been asked to leave employment and be re-engaged through an agency. It was found that after two years of working under this arrangement the worker had morphed into an employee of the end user company and could claim under associated rights.

  2. Employment law

    a breach of reasonable duty of care in giving reference from her employer and she claim an economic loss she must have had since she lost that job she apply for. The employer Jill should have made Anna aware of the complaints before the reference had been giving in order

  1. Labour law

    It is advised that Frankie should take her complaint to the employment tribunal because of the benefits involved. By taking it to the tribunal, the case can be resolved speedily. A case may take many years to reach court and usually cases reach the tribunal within weeks or months of initial proceedings.

  2. employment law problem question

    if there could be anything that Barry could do to safeguard the company and prevent possible liability. The final issue is the fact that Denise was dismissed for gross misconduct after Barry suspected that she has been misusing company funds by concocting false invoices.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work