Business Law for Accountants

Lecture 5 2021/22
Recap of Lecture 5
• Ethics
• Codes of Conduct for accountants
• Compliance based or Ethics based
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
• Why is the distinction important
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
– Personal service
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
– Personal service
– Control
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
– Personal service
– Control
– Mutuality of obligations
Employment law
• Do the three factors exist? Key factors include:
– Personal performance
– Freedom to delegate
– Holiday pay and sick pay
– Provision of equipment
– Using support staff
Employment law
• Do the three factors exist? Key factors include:
– Personal performance
– Freedom to delegate
– Holiday pay and sick pay
– Provision of equipment
– Using support staff
– Paid gross or net
– Financial responsibility
– Working for one company
– Length of service
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
– Personal service
– Control
– Mutuality of obligations

• Why is the distinction important

– Employment protection
– Insolvency
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
– Personal service
– Control
– Mutuality of obligations

• Why is the distinction important

– Employment protection
– Insolvency
– Implied terms
Employment law
• Does an employer/employee relationship exist – is there a
“contract of service” (employed or self-employed)
– Personal service
– Control
– Mutuality of obligations

• Why is the distinction important

– Employment protection
– Insolvency
– Implied terms
– Negligence
– Tax
Contract of Employment
• Contract law
• Requirements of written contract
• Duties of an employee
• Duties of an employer
• Notice
Contract of Employment
• Contract law
– 3 required elements
– Methodist Conference v Preston (2013)
– Changing the terms
• Mutual trust, confidence and respect
• United Bank v Akhtar (1989)
• IOW Tourist Board v JJ Coombes (1976)
Contract of Employment
• Requirements of written contract
– When by?
– Names
– Dates
– Previous service
– Pay
– Hours
– Job title
– Holidays
– Sick pay
– Pensions
– Notice
– Discipline
Contract of Employment
• Duties of an employee
– Fidelity
– Obedience
– Confidentiality
– Reasonable skill and care
– Personal service
– Trust and confidence
Contract of Employment
• Duties of an employer
– Pay reasonable remuneration
• Minimum pay rates
• Zero hour contracts
• Equal Pay Act
– Indemnity
– Health and safety
– To provide work
– References
– Confidentiality
– Trust and confidence
Contract of Employment
• Notice
– How much:
• Up to 1 month continuous employment
• >1 month<2 years
• >2 years<12 years
• >12 years