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Business Law

Introduction to Business Law

Business Law is also known as commercial law which describes the rights of employers and employees within organization as well as guide them in every situation related to business. All the laws of business fall under civil law and it also deals with the issues of public and private law (Sackman, Van Brunt and Reskin, 2015). These types of laws are made in order to protect the interest of employees and to operate effective business operations. Present report consists of three parts in which first one is about understanding relationship between employer and employees through Employment Right Act 1996. Second part is about different scope and structure of The Equality Act 2010. Lastly, it includes main source of European Union Laws.


This is a type of law which was passed by government of UK that decides the rights or obligations of employees and employers within organization. It is the responsibility of employees and employers to make sure that they follow all terms and conditions which are followed or else they will be punished by law for the non-fulfilment of these norms (Sackman, Van Brunt and Reskin, 2015). These types of laws are very helpful to protect the interest of both employees and employers. Different provisions are provided for both superiors and subordinates which enable to operate the business operations effectively.

Sources of the terms of employment contract

In Employment act 1996, there are mainly two different sources which are as follows:

Express terms

In express terms, there are different set of elements involved among which some of them are as follows:

  • Severance pay
  • Providing employees with flexibility working hours.
  • Conditions and pay
  • Obligations to parties and general rights
  • Redundancy

When a candidate is provided with an offer letter, then all terms and conditions which are included in it should be considered. Different organizations may have diverse set of rules and regulations (Furrow, Greaney and Schwartz, 2013). However, there are basic laws which have to be considered by the firm and should be followed within organization.

Implied terms

These type of law in not includes within the contract but has to be followed by employees within the organization. There are different laws and facts which have to be considered by both employees and employers. Few of them are as follows:

Implications from facts

One of the examples that can be determined is from the case of BP Refinery Pty Ltd v Hastings Shire Council. In this case, Privy Council said that there should be terms implied and all the conditions should be satisfied. This should be equitable and reasonable, business efficacy should be provided to contract, this way no terms will be implied (Hanrahan, Ramsay and Stapledon, 2013). Further, there should be clear explanation and at last, it should not contradict to any express term.

Implication of law

The relationship of employees and employers which is inherent can give rise to implied term. Law can be applied to a certain period of notice of termination.

Common law duties of employees

There are different set of roles and responsibilities which should be followed by the employees. Few of them are as follows:

Rules and regulations

Every organization is having different set of rules and regulations which have to be followed by the employees (Abrantes Metz, Rauterberg and Verstein, 2013). It is the responsibility of employees to make sure that they follow the regulations provided to them.

Damages to asset

All facilities which are provided by the firm should be used properly and it should not be damaged. It is the responsibility of employees to make sure that they hand the assest or property of organization properly and should not cause any type of damage

Efficiency in work

All the tasks which are assigned to employees should be performed effectively and efficiently. If they do not perform their roles properly, then firm has the right to terminate them.

Accepting change

There are cases in which changes take place within organization in order to attain the set goals and objectives (Van Koppen, Van der Zaag and Tapela, 2014). It is important that the changes which are implied should be adopted by the employees and performed accordingly.

Providing feedbacks

It is the duty of workforce that they provide their management regarding the issues which they face within the organization. This will enable to make improvement in the services which are provided to customers.

Common law duties of the employer

There are many duties which have to be performed by the employers. Among these, few of them are as follows:

Providing training

It is the responsibility of employers to monitor their employees and identify the areas in which they lack. Accordingly, they should be provided with training so that workers can perform their roles and responsibilities effectually (Newburn and Stanko, 2013). Further, management should provide their employees with different set of tools and equipment for using of which suitable training must be provided so that better services to customers can be rendered.

Effective communication

Employers should focus on having proper interaction with customers so that healthy environment can be provided. Further, it is also the responsibility of employer to motivate their workers so that they can work effectively and efficiently.

Healthy environment

There are few services which should be provided by the organization (Drexler, Black and Sparks, 2015). In this context, water facilities, rest rooms, canteens, proper time to rest, flexible working hours, etc. should be given to the working people of firms. It would prove to be very helpful to motivate the employees to work freely and with high level of efficiency.


This is a type of act which focuses on securing employee’s rights without making discrimination at the workplace (Furrow, Greaney and Schwartz, 2013). Further, it aims at providing consistency so that healthy environment can be provided toworkers. This act makes sure that employees are not differentiated at workplace on the basis of age, sex, race, maternity, marriage, sexual orientation, religion, etc.
Scope and structure of EA 2010

With the help of Equality Act 2010, people of Britain are protected from getting discriminated on any basis at the workplace. It is the responsibility of organization to make sure that all employees working within firm are treated equally (Hanrahan, Ramsay and Stapledon, 2013). All organizations which do not follow the laws under Equality act are liable to pay the penalty and face consequences as government can take legal actions against them for the non-fulfilment of norms. Further, at the workplace, employers have some responsibilities towards employees among which the most important is to treat them without any type of discrimination.

Different types of discriminations covered by the EA 2010

There are different types of discrimination which fall under Equality Act 2010. These are like:

Direct discrimination

This is a type of discrimination in which a person is not given with same importance like others. This may be done on the basis of gender, age, race, religion, sexual orientation, etc. (Abrantes Metz, Rauterberg and Verstein, 2013). Thus, this kind of differentiation made with an employee at the workplace is direct discrimination. These are associated with other people who have protected characteristic.

Indirect discrimination

Indirect discrimination occurs when people do not show their discrimination over other through their words. However, they make others realized through their actions. For example, managers can show discrimiantino my not providing employees with promotion.

Discrimination by association

Even in this type of discrimination, it includes disabilities, belief, race, religion, age, sex, etc. which is treated with people in organization (Van Koppen, Van der Zaag and Tapela, 2014). This type of situation occurs when a person is associated with another who possess protected characteristic.

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Perception discrimination

Under this type of prejudice, people develop a negative perception in their mind because of their protected characteristic which is known as perception bias. This discrimination is even applied on those who do not possess protected characteristic and others may perceive them.


This is a type of prejudice which is also known as unwanted conduct that is directly related with protected characteristic. Female workers are provided with high preference and there are case in which bias occurs (Newburn and Stanko, 2013). However, both male and female workers are treated to be equal and they should be protected against any type of discrimination.


Victimisation prejudice is applied for those employees who are treated badly just because they complained or supported another person under Equality act (Abrantes-Metz, Rauterberg and Verstein, 2013). Action that should be taken by employer under Equality Act 2010.In the present business environment, it becomes difficult for the employer to treat all workers in a justified manner. However, it is the responsibility of employer to make sure that they follow Equality Act 2010 (Drexler, Black and Sparks, 2015). In addition to this, employees are provided with the right to claim for damages which are caused to them by their employer on the basis of discrimination done. Following are the points which should be considered by the employer in order to provide fair environment within organization

Fair recruitment policies

In accordance with the guidelines provided in Equality act 2010, it is important that employers make sure that they made effective recruitment process so as to avoid racial discrimination. All eligible candidates as per the vacant post should be provided with opportunity so that all of them can apply for the vacant post. In this context, they should not discriminated be on the basis of their age, gender, race, religion, etc.

Reasonable adjustment

Reasonable adjustment needs to be made so that employee’s practices can be done effectively as well as employers should not be rigid with workers. It is the responsibility of employer to develop strong relationship with their subordinates and for this purpose, reasonable adjustments need to be made. Further, changes within organization can affect the worker's performance and thus, they should be provided with flexible working hours.

Employment policies

It is the right of every employee that he should be treated equally. In this context, employers should aim at providing employees with fair working practices and healthy environment (Reed, Shedd and Cahoy, 2013). Fundamental rights and terms in employment should not be contradicted which are provided in the UK legislation. Employees should be provided with extra pay if they work more than their efforts and time.

Fair work opportunity

All employees within organization should be provided with equal opportunities (Abdi and Aulakh, 2012). Different people have diverse set of skills and capabilities however, they should not be discriminated on this basis. Employees should be provided with equal opportunity and they should be treated similarly.

Legal guidelines

It is important for the firm to follow Health and Safety act 1974. In this context, employees should be provided with the necessary security so that life of workers can be protected (Phillips, Huggins and Harding, 2016). In addition to this, employees should be provided with proper training so that they can effectively deal with the health issues which may occur because of the nature of their job.

Victimization and harassment

It is essential that non-ethical activities are not performed within company. It is the moral and legal duty of employer to make sure that employees are not victimized or harassed (Sackman, Van Brunt and Reskin, 2015). In case if any type of such activities is found within firm, then it is to be considered as the criminal offence under Equality act 2010.


There are different sources which are involved in European Union. In this context, there are three sources in EU and they are as follows:

Primary law

These can be determined as the treaties which are established by EU. In other words, these laws mainly come from founding treaties (Law, Buhalis and Cobanoglu, 2014). These are helpful to distribute competencies among member states and union and these together establish the power of European institutions. Further, they also determine the law framework in EU.

Secondary law

This consists of unilateral agreements and acts (Drexler, Black and Sparks, 2015). These can be divided into two types which are listed out from Article 288 of Treaty on functioning of European Union. Second is listed from those which are not listed in Article 288 but it includes recommendations, communication, etc. Agreements and convention are grouped together so that laws can be effectively enforced.

Supplementary law

Apart from case law of Court of Justice, cited law also includes general principles of law and international law (Reed, Shedd and Cahoy, 2013). This is helpful for the court as it enables to fill up all the gapes between secondary and primary laws. While developing a case law, international law is inspirational.

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Directive 92/85/EC

The main objective of this act is to protect health and safety of women who work in the organization. In includes situations like pregnancy, given birth and breastfeeding women. It is important for organization to understand the situation and provide facility to the female employees to take leaves in that period (Abrantes Metz, Rauterberg and Verstein, 2013). As per the law developed by European Union, females should be provided with 14 weeks maternity leave and it should be two weeks before when birth occurs. In this context, women should not be discriminated or dismissed form her post because of maternity period or pregnancy. If firm does not provide leave in such condition, then it will be punishable by law.

Directive 2000/78/EC

The equality framework directive 2000 is a general framework which provided equal treatment within workplace of organisation. Main purpose of this framework is to stop discrimination activities like disability, sexual and orientation etc. which arisen within the work-place are help to reduce. Further, it is implemented in UK in the form of Equality Act 2010. It is applied on all EU member countries in the same manner for purpose of maintained fair union for business purpose. Further, article 2 prohibits both direct and indirect discrimination along with this, it defines condition on which liability may arised. (Law, Buhalis and Cobanoglu, 2014). Apart from this article 5 and 6 describing some exception which gives right to employer for protecting himself from discriminate provision. Further, It is also necessary for operate business with effective manner. The main purpose of issuing of directive is to provided similar environment to employer. It secures working environment in an effective manner with the given provision. The directive provision is mandatory required for member countries to applied with legislation for purpose of maintained similar work environment.


The report concludes that there are different set of laws within organization which are developed in order to protect the rights of employees and employers. Further, there are discrimination acts which have to be considered by the management. This is done in order to ensure that all employees are provided with equal opportunities. Moreover, it is the responsibility of employer to provide their workers with healthy working environment in which they will be able to perform their roles and responsibilities effectually. Lastly, it is the responsibility of employees to protect equipment and tools which are provided by the management.


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  • Abrantes-Metz, R. M., Rauterberg, G. V. and Verstein, A., 2013. Revolution in manipulation law: the new CFTC rules and the urgent need for economic and empirical analyses. University of Pennsylvania Journal of Business Law.
  • Abrantes-Metz, R. M., Rauterberg, G. V. and Verstein, A., 2013. Revolution in manipulation law: the new CFTC rules and the urgent need for economic and empirical analyses. University of Pennsylvania Journal of Business Law.
  • Drexler, D. A., Black Jr, L. S. and Sparks III, A. G., 2015.Dividends. Delaware Corporation Law and Practice.
  • Furrow, B. R., Greaney, T. L. and Schwartz, R. L., 2013. Health Law: Materials and Problems.
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