BPP University College Of Professional Studies Limited (BPP)
A complete summary of all chapter handouts, lecture recordings and SGSs consolidated into clear and concise notes with worked examples. Contains everything you need to know for the Employment Law section of the BPP BLP exam.
BPP University College Of Professional Studies Limited (BPP)
Legal Practice Course
Business Law and Practice
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EMPLOYMENT LAW
Employees, Workers and Independent Contractors
Determines:
- Entitlement to statutory employment protection – unfair dismissal and redundancy.
- Who HMRC should approach for tax and NI – employee will be though PAYE.
- Whether a business can be held vicariously liable for employee’s actions.
Employees:
- S.230(1) Employment Rights Act 1996: Individual who works under a contract of employment.
- Court will look at substance, not whether labelled employment contract / contract for services.
- 4 common law tests:
o Personal Service Test: Must perform work personally. Ability to send substitute may negate
employment status – but Tribunal will look if right to substitute is fettered or exercised in
practice.
o Control Test: Will look at extent to which employer controls who does the work, what work is
done, where and when the work is done and how it is performed.
o Mutuality of Obligation Test: Employer under duty to provide work and employee under duty to
accept and perform it.
o Economic Reality and Integration Tests : All aspects of a person’s work activities – integrated into
workforce, bear a degree of financial risk, regular wage or invoice, able to work for other, subject
to a disciplinary or grievance procedure, holiday / sick pay, wears a uniform and who pays tax.
Worker: EC derived legislation extends some employment rights to this hybrid category, including Working
Time Regulations 1998, National Minimum Wage Act 1998 and Equality Act 2010
- S.230(3): Individual who has entered into or works under a contract of employment or any other
contract (express or implied) where they have undertaken to perform the services personally.
Independent Contractors: Set up business on own account and provide services under a contract for services –
incur own expenses and financial risk, handle own tax. Regarded as self-employed, no employment
relationship.
CONTRACTUAL - Wrongful Dismissal
- Arises where employer has dismissed an employee in breach of terms of employment contract.
- Tribunal’s only concern is if correct contractual requirements have been complied with.
- Notice must also meet a statutory minimum (unless summary dismissal for very serious breach):
- Employed between 1 month and 2 years: 1 weeks’ notice.
- Employed for 2 years+: 1 weeks’ notice for each year up to 12 weeks.
- Claim can be made in County Court, High Court or Employment Tribunal (limit of £25k in ET).
- Concern breach of contract no limitation period of 6 years applies in courts.
- Claims in ET must be made within 3 months subject to mandatory early conciliation procedure under
ACAS – 1 month to settle where time is stopped.
- Remedy is damages for breach of contract so employee must mitigate loss by seeking new
employment, if they find a job or fail to seek a job damages will be reduced.
- Employer can make payment in lieu of notice – no breach of contract if detailed in contract and pay
this in place of notice (payments are taxable).
STATUTORY - Unfair Dismissal
Will deduct or increase by 25% depending on it employee or employer has breached ACAS Code.
- Only available to employees.
- Must be made to ET, then E appeals T, then C of A then SC.
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