Business Practices in Herne Bay Steamboat Company v Hutton - Case Study Example

Business and employment law Introduction The law that applied in the business activities governance is referred to as the common law. It is used in the relations, behavior of people and rights in the business practice. The law is thought to be a branch of the civil regulations and applies to both public and also private law. The components of the commercial law are the transport by sea, agent and principal, shipping merchants, bills of exchange and also partnership. The law regulates the hiring practices in business, contracts, manufacturing and also the sales of goods and services. There is the adoption of the commercial law by many states that aid in helping them to involve in good and fair business practices in Herne Bay 1Steamboat Company v Hutton (1903). Question 1 Simon as the purchasing manager of Accounting for Small Business (AFSB) was obligated to make the purchases for his company. There are several regulations involved with the purchasing order. The purchaser has power to make changes in the order. The law enables the customer to amend the order and make changes. It may include changes in the method of packaging, technical needs, date of delivery, and also the venue. The quantity of the items being supplied can also be amended, the seller is obligated to comply with the amendments of the buyer and both parties should agree to the changes.1 The purchaser is also allowed by the law to terminate the order. It may be the whole order or part of the order. The termination of the order should have the intention of meeting the convenience of the buyer. The seller is required by the law to comply with the request of the buyer when the information gets received. The supplier is obligated to stop the work in the outstanding orders and also take the necessary obligations towards the protection of his property. However, the seller is entitled to the cost incurred when termination gets requested but does not include the profits expected or revenue. The compensation cost includes cost of work done before the termination notice had gotten issued and also the direct economic expenses in Krell v Henry (1903). The compensation to the cost incurred by the seller takes place only under several conditions. Among the factor2s are when the claims get made within duration of ten days from when the notice of termination got made. The compensation gets done on the case that the termination of the purchase order was due to bankruptcy federal, foreign laws on the side of the seller. Conditions of the seller resulting to insolvency or making benefits to creditors may also result to compensation. The purchaser is obligated to acquire the goods from other sources on the termination of the purchase order.2 The law also incorporates the limitations involved to the purchaser’s liability. The buyer is not obliged to any liability in a transaction that may be connected to the order of purchase. It gets observed regardless of the cause of the action. In the case of the study, Simon should not be liable of the cost incurred in the termination of the purchase order. The action taken to the purchaser can be taken by the seller in accordance to the law. However, in the case of the study the termination issued should prevent the supplier from supplying the items. The seller can, however, claim compensation for the cost incurred before the termination was made. Question 2 There are laws that protect Employees during transfers. They are commonly referred to as TUPE and have gotten adopted in the United Kingdom. They are used to guide both the employers and employees in the conditions of transfer. They form an important section of the labor laws in the United Kingdom that protect the employees who work place is moved from one place to another and from one employer to another. Thus, Fred is protected from the transfer from one area to another. According to these laws, Fred’s protection against dismissal, worsening of his contract’s important terms and conditions as well as the right of getting information and consultation through the representatives is assured during his transfer in Hickman v Kent or Romney Marsh Sheep Breeder’s3Assocn (1915). All these roles of protection lie on the responsible company both before transfer take place, during the transfer and even after transfer. Fred, therefore, has the right to have consultations with the company before being set to transfer. However, these obligations get relieved if there is a technical, economic and organizational reason of employment’s cessation. These reasons also allow the alteration of the employee’s terms and conditions. Fred thus is required to offer technical knowledge in the business and should, therefore, comply with the instructions of the management to transfer. The laws of transfer to comply with the economic or technical requirements do not apply on the case of sale of the company. If such a scenario takes place, since the company will remain the same, all the contractual obligations will remain. The regulations and directives apply to other types of transfer through the sale of physical leases and assets. The regulations are also applicable in some cases for a job transferred to the contractors. The terms for workers of this protected contract incorporate pay, hours of work, length of service among others. However, the pension entitlement is not inclusive. Fred also can acquire the representation of trade union; they make the consultations on behalf of the employee that forms their responsibility. The employer has a responsibility of complying with the requirements of the trade union. However, when he or she fails the trade union can file a petition on behalf of the worker. On the case that the worker is not satisfied with the transfer, he or she can refute the transfer. However, when the transfer gets refuted the employee will not have any payments made. The employee is entitled to the redundancy payment 4because he or she is not yet dismissed from the company in Employment Standards Act (1990). According to the law governing employee’s transfers, whenever an employee gets transferred from his or her current job to a new employer, the employee is liable of receiving similar contractual term of employment as he or she was receiving before he got transferred. However, the occupational pension benefits may be in exception. If at all Fred gets transferred to the new office, he will, therefore, receive similar contractual term he was currently receiving. The law also states that a transferred employee has a right of receiving equivalent pension benefits as he was receiving or was to receive where he or she was working. It is with respect the occupational pension scheme which the employee was operating with or he or she was eligible to be at his or her old employer’s workplace. Fred will hence be liable of receiving the pensions he was receiving or he was liable of receiving in his current job before transferring. TUPE also assures employee’s service consistency even after transferring from one place to the other. The aspect hence provides Fred with the assurance of continuously serving in the company despite the transfer. If the new employer decides to make some changes to the contractual terms of an employee as well as his conditions because of the transfer, the changes can be ineffective. The employer has to base these changes on the basis of technical, organizational5 or economic reason regarding changes in workforce and they have agreed with the employee. Employees have the right of not getting dismissed due to transfer unless the employer possesses an economic, organizational or technical reason for dismissing entailing the workforce changes. The aspect hence offers Fred with the chance of entering into negotiations with the management concerning his transfer until he gets satisfied since his right to retain the employment has an assurance. If the employer getting transferred has an outstanding claim or any form of the potential claim against his or her previous employer the liability will get transferred to the current transfer when the employee gets transferred. If the employees affected by transfers have no recognized trade unions to represent them, it will be essential for the appointing of employee representatives for consultation and information purposes. The employer should hold an election to serve this purpose. If the employer, however, chooses to object to the transfer, the employee has to inform either the new or the old employer preferably in writing before transfer has taken place. Fred hence should follow this protocol since he is not willing to transfer temporarily to a new office. However, since the management has an economic6 reason for his transfer, he should comply with the transfer request. Question 3 The transfer of persons can take place because of legal transfer or on a case or merger. When the transfer has taken place the employee becomes a worker of the person transferred to, in the case of a companys workers, they were entitled to become the employees of the new business management in Portsmouth. On the stated conditions the duties and also the rights of employment will be considered. These rules and regulations will be applicable in the case of the employees of Southampton. Some of the considerations discussed are the working hours, the contract and its terms company in Employment Standards Act (1990). The employees should maintain their work etiquette even after transferring to a new office. The office in return will observe the obligations and rights of the employees. The rights that are observed by the new employer will be in line with the existing contract and also relationship in the office of Southampton. On the same grounds, the employees are not subjected to dismissal from employment. However, the dismissal of the employees may only take place under the reasons of economic, organizational reasons and also technical grounds. The office of Southampton will be obliged to give the employees on the conditions of transfer; however, on the case that the company fails to communicate7 the transfer will also take place. The employee is obliged to information and also consultation. The employees are entitled to get represented until they get reappointed in their positions. In the case of the trade unions, they are entitled to represent the employees in their new positions. The workers are entitled to be given information through direct means and also through trade unions. The information includes the date of transfer, the reason towards transfer, social and also economic consequences, and all the other matters that are related to the employee.8 On the case that there are disadvantages towards the transfer of an employee on the part of the worker a board of arbitration may be formed to solve the case in Davis Contractors v Fareham (1956). Bibliography Davis Contractors v Fareham UDC [1956]. Employment Standards Act, RSO [1990] c E.14 Herne Bay Steamboat Company v Hutton [1903]. Hickman v Kent or Romney Marsh Sheep Breeders Association [1915]. John Wilkes (Footwear) Ltd v Lee International (Footwear) [1985]. Krell v Henry [1903]. Marsh, S. B., & Soulsby, J. (2002). Business law. Cheltenham, Nelson Thornes. Rolled Steel Products Holdings Ltd v British Steel Co [1985]. Sargeant, M., & Lewis, D. (2005). Employment law. Harlow, Pearson Longman. Ullmann, V. (2004). Labor and employment law. Clifton Park, NY, Thomson/Delmar Learning. Read More