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Introduction to Employment Law || with A+ Guaranteed Solutions.

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  • Introduction To Employment Law

The Employment Rights Act 1996 (ERA) defines an employee as: correct answers "an individual who has entered into or works under a contract of employment" -also called a contract of service. An independent contractor (IC) is: correct answers a person who runs his/her own business (self-employ...

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  • September 12, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • Introduction to Employment Law
  • Introduction to Employment Law
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The Employment Rights Act 1996 (ERA) defines an employee as: correct answers "an individual
who has entered into or works under a contract of employment"

-also called a contract of service.

An independent contractor (IC) is: correct answers a person who runs his/her own business (self-
employed) and may also work for others under a contract for services.

In deciding whether a person is an employee or an IC the courts will take into account certain
factors including: (10) correct answers 1. The wording of any contract between the parties
(although this is not conclusive):
- e.g. referring to someone as an "employee" or "independent contractor".

2. The payment of wages (rather than a lump sum), a pension (rather than the individual making
his/her own provision) holiday and sick pay, usually indicates a person is an employee.

3. Personal performance -the greater the freedom a person has to delegate his/her duties, the less
likely s/he will be considered to be an employee.

4. Degree of control -the greater the degree of control over a person, (how, when and where s/he
works), the more likely s/he will be considered to be an employee.

5. Mutuality of obligations -an obligation on one person to provide work for another and an
obligation on that person to perform that work is consistent with a contract of employment.

6. Employees are normally provided with the tools and equipment to do a job whereas IC's
normally provide their own.

7. Uniform -a person required to wear a uniform is more likely to be considered an employee.

8. Sole employer -a person who can work for more than one person is more likely to be
considered to be an IC than someone who works for only one person.

9. Support -a person who can rely on an "employer's" support staff and facilities is more likely to
be considered to be an employee.

10. Length of service -the longer the working relationship between the parties, the more likely
the person will be considered to be an employee.

The significance of the employer/employee relationship include: (5) correct answers 1. Greater
protection is given to employees:
- e.g. statutory sick and redundancy pay and protection from unfair/wrongful dismissal.

, 2. Some rights and duties implied into a contracts of employment generally do not apply to IC's
contracts for services.

3. Employers are vicariously liable for the torts of employees committed during the course of
their employment but are generally not liable for the torts of IC's.

4. In the event of a company employer's liquidation, an employee has preferential rights to
outstanding salary and redundancy payments.

5. An employer must deduct tax from an employee's salary, pay national insurance contributions
etc. An IC is responsible for his/her own tax, national insurance etc.

Contracts of employment: (4) correct answers The ordinary principles of contract law apply to
contracts of employment:
- e.g. there must be an offer, acceptance, consideration, intention to create legal relations etc.

A contract of employment can be made verbally/spoken or in writing.

The ERA provides an employer must provide an employee with written particulars of
employment once an employee has been employed for 2 months. This does not form part of a
contact of employment but may serve as evidence of its terms.

Details to be provided to employees within 2 months of starting work are:
-the names of the employer and the employee
-the date the employment began
-the normal place of work
-a description of the work to be undertaken by the employee
-the rate of pay
-hours of work
-sick pay
-pension rights
-the period of notice to be given to terminate the employment.

The terms of a contract of employment may be: (3) correct answers Expressly agreed between
the parties verbally or in writing.

Implied:
- e.g. an employer has an implied duty to take reasonable care of an employee by providing a
safe system of work, competent staff and safe equipment and premises.
-An employee has an implied duty to exercise reasonable skill and care in performing his/her
duties, to comply with an employer's reasonable instructions,not to misuse confidential
information and to be honest and loyal.

Imposed by legislation:

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