5OS01 Assignment Example
5OS01 Specialist Employment Law explores key areas of employment legislation and its legal framework, emphasising how HR professionals must consider legal requirements in different jurisdictions while performing various aspects of their role.
Preparation for the Tasks
At the start of your assignment, you are encouraged to plan your assessment work and seek guidance and advice if you are unsure, using the Course forum or Ask the Tutor forum.
- Refer to the indicative content in the unit to guide and support your evidence.
- Pay attention to how your evidence is presented.
- Ensure that the evidence generated for this assessment is your own work.
Case Study
Peachy Desserts Ltd is a small chain of dessert restaurants owned by sisters Charlotte and Madeleine. Since opening their first restaurant in December 2018, the business has expanded to 10 branches with 60 employees, all located within a 30-mile radius. Each branch is staffed by a manager, a supervisor, and several full-time and part-time sales assistants. Despite COVID lockdowns, the business has thrived by offering dine-in, takeaway, and home delivery services. The sisters plan to expand further by opening two new stores and acquiring Crumbly Cakes, an existing chain of two dessert parlours. All employees at Peachy Desserts Ltd and Crumbly Cakes are permanent staff, with no apprentices.
Historically, Charlotte has managed all business matters, while Madeleine has focused on developing recipes. Both sisters are increasingly concerned about potential mistakes they may have made regarding employment law. Knowing that you are studying for the CIPD Associate Diploma in People Management, they have decided to seek your advice on several matters.
Task
Assessment Questions
- AC 1.1 Evaluate the aims and objectives of employment regulation
Example:
Protection of Employee Rights
Employment laws strive to ensure that employees’ rights and interests are safeguarded from exploitation by their employers (Indeed, 2023). For example, the National Minimum Wage Act of 1998 protects employees’ rights to fair wages (GOV.UK, 2011). Similarly, the Working Time Regulations of 1999 set the maximum working hours at 48 hours per week and mandate rest periods and breaks, promoting social justice, basic living standards, and work-life balance. Additionally, legislation such as the Health and Safety at Work Act (HASAWA) of 1974 ensures employee health and safety by requiring employers to provide a safe working environment (Foulis, 2023).
- AC 1.2 Examine the role played by the tribunal and court system in enforcing employment law
Example:
Employment Tribunals
Employment Tribunals are independent bodies that represent the lowest level in the UK court hierarchy (Judiciary.uk, 2022). They handle employment-related disputes and claims, including cases such as age discrimination, unfair dismissal, and other discrimination claims. Employment Tribunals provide a more accessible and informal setting for individuals to obtain legally binding decisions. If parties are dissatisfied with the Employment Tribunal’s decisions, they have the option to appeal to the Employment Appeal Tribunal.
- AC 1.3 Explain how cases are settled before and during legal procedures
Example:
Resolving Employment Disputes in the UK
In the United Kingdom, disputes in employment relationships can be resolved through informal approaches before resorting to legal litigation mechanisms. This is facilitated by the Advisory, Conciliation, and Arbitration Service (ACAS) (Acas, 2022), an independent organisation that provides essential arbitration, conciliation, and advisory services to both employers and employees. ACAS aims to prevent disputes from escalating to employment tribunals, primarily through early conciliation processes.
And provide tailored advice for each of the following scenarios:
- AC 2.1 Charlotte and Madeleine are aware discrimination legislation exists. They are unsure how this might affect their approach to recruitment and selection of employees for their two new branch openings. They want to avoid dealing with retirement and do not want their business disrupted by employees taking maternity leave. To overcome this, they decide to appoint young men. Advise them on the decision of appointing young men only.
Example:
The Equality Act of 2010
The Equality Act of 2010 is the primary legislation in the United Kingdom designed to protect employees from discrimination (GOV.UK, 2011). According to this legislation, employers are prohibited from discriminating against employees based on protected characteristics, including disability, religion, gender, marriage and civil partnership, pregnancy and maternity, age, and sex. Various forms of discrimination are recognized under the Act, such as direct discrimination, indirect discrimination, victimisation, and harassment.
- AC 2.2 Cat, a restaurant manager, has recently become aware that she is paid less than Kit, another manager who is male. Her salary is £28,000 a year, whereas Kit earns £30,000 a year. She asked Charlotte to increase her salary to match Kit’s, but she refused saying Kit deserved the extra money.
Example:
Equal Pay Obligations under the Equality Act of 2010
Under the Equality Act of 2010, organisations in the United Kingdom, including ARL Labs, are required to ensure equal pay for employees performing equal work, regardless of gender or other protected characteristics (GOV.UK, 2011). If there is any disparity in pay between employees of different genders, ARL Labs must provide a reasonable and justified explanation (Acas, 2022).
- AC 3.1 The lease on an existing site is due to expire in four months and the new terms are prohibitively expensive. Charlotte and Madeleine decide to close the restaurant when the lease expires, rather than renew the lease. When the restaurant closes, they intend to dismiss all six employees, paying each person two weeks’ notice as stated in their contracts of employment:
- Angelica, the manager (eight years’ service, 53 years old, salary £700 per week)
- Saffron, the supervisor (five years’ service, 30 years old, salary £350 per week)
- Chip and Cherry, full-time sales assistants, who are 18 years old, and Reese and Carmel, full-time sales assistants who are 19 years old. All four employees have one year’s service, are paid £9.00 per hour and work 25 hours a week)
Advise why their approach is risky and what they should do instead
Example:
An employment contract is a critical document in the employment relationship, outlining the rights and responsibilities of each party (Nidirect, 2022). Any changes to significant terms of the employment contract require mutual agreement between both parties. For instance, if ARL Labs intends to modify the employment contract, it may seek employee agreement through collective bargaining. This involves negotiations between the organisation’s management and trade union representatives to reach an agreement on key employment terms.
Additionally, organisations may change employment contract terms if a flexibility clause exists. Flexibility clauses allow employers, for example, to adjust shift patterns as needed (Nidirect, 2022). Conversely, if the employment contract includes a mobility clause, ARL Labs can initiate changes related to the employee’s work location.
- AC 3.2 The takeover of Crumbly Cakes is due to be completed in four months. Ownership will transfer to Peachy Desserts Ltd, and the identity of the owner will change. Charlotte and Madeleine consider the takeover a ‘good fit’ with their business, as the nature of the business is the same and they will take over all tangible assets. Charlotte and Madeleine do not dispute that Peachy Desserts Ltd will become the employer of the 12 employees of Crumbly Cakes but plan to give the employees of Crumbly Cakes new contracts on the same terms and conditions as their existing employees. Advise on the legal risk of this approach and what should be done instead.
Example:
The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), also known as transfer of undertakings, is legislation designed to safeguard employees’ rights during mergers, takeovers, or transfers of organisations or services to new employers (Dube, 2022). According to this legislation, once a TUPE transfer occurs, the new employer assumes the liabilities of the previous employer and is legally obligated to uphold the terms of service and employment previously provided.
Additionally, the new employer is prohibited from dismissing employees unless based on an Economic, Technical, or Organisational (ETO) reason. ETO reasons may include economic reasons related to organisational performance, technical reasons such as changes in technology, or organisational reasons such as restructuring (Dube, 2022). Dismissals based on these ETO reasons are generally considered fair, whereas dismissals for other reasons may constitute automatic unfair dismissal under TUPE.
- AC 4.1 Charlotte and Madeleine are aware there are changes to the National Minimum Wage each year. They firmly believe that all sales assistants work hard regardless of age and as such should be paid the same. All sales assistants are currently paid £9.00 per hour. They want to check their approach is lawful and wonder whether there are any rights related to pay statements they need to comply with.
Example:
The Employment Rights Act protects employee rights concerning pay at ARL Labs. According to the legislation, ARL Labs must not unlawfully deduct employee wages or unfairly dismiss them (Legislation.gov.uk, 2023). The Act also grants employees the right to claim compensation for unfair dismissal and redundancy pay. However, the amount of redundancy pay provided by ARL Labs may vary based on the length of an employee’s tenure with the organisation (NetLawMan, 2022).
- AC 4.2 Charlotte has received a complaint from Kit, the manager of a restaurant that trades seven days a week. Kit states his working hours are too long, and that he does not have adequate breaks or sufficient days off. He normally works five days a week from 9.30 am to 9.30 pm but when his supervisor is on holiday, he must cover their days off. Advise on whether Kit has a legal cause for complaint, with reference to employment law.
Example:
Employment Rights Act 1996
The Employment Rights Act 1996 safeguards employees’ entitlement to paid time off for public duties, such as serving as a jury member (Citizens Advice, 2023). Additionally, the legislation protects employees’ right to request flexible working arrangements, provided they have been with the organisation for at least 26 weeks. ARL Labs must review such requests and communicate their decision to the employee within three months. If the request is declined, ARL Labs must provide a written explanation for their decision.
- AC 4.3 Coco, a restaurant manager with eight years of service, was delighted to inform Charlotte and Madeleine that she is pregnant and that her baby is due in six months. Charlotte, who took two weeks off after the birth of her baby, is unhappy at the disruption this will cause but is happy to let Coco book two weeks’ annual leave to coincide with the birth of her baby. Charlotte feels a small business cannot afford the maternity leave and maternity pay that a larger organisation could offer, and she knows from experience that two weeks off is sufficient. Advise Charlotte and Madeleine on Coco’s maternity rights. You are concerned about Charlotte and Madeleine’s lack of knowledge in this area and decided to add a brief overview of paternity and adoption rights in case they make mistakes in this area too.
Example:
The Employment Rights Act of 1996 protects employees’ rights to maternity leave and pay at ARL Labs. Employees with more than 26 weeks of tenure are entitled to up to 52 weeks of maternity leave and 39 weeks of maternity pay (NHS.uk, 2020).
Moreover, under the Equality Act of 2010, ARL Labs is prohibited from discriminating against employees based on maternity or pregnancy upon their return to the workplace. Employees returning from ordinary maternity leave must be reinstated to their previous position, while those returning from additional maternity leave should be offered equivalent roles.
- AC 4.4 Chelsea, a restaurant manager, has made a flexible working request and wants to change from working full-time to working three days a week. Charlotte informs you she will let Chelsea know that Peachy Desserts Ltd ‘don’t do’ flexible work and if she doesn’t like it, she should leave and find a part-time job somewhere else. Advise Charlotte and Madeleine of the risks of their approach and what they should do instead.
Example:
The Flexible Working Regulations of 2014 grant employees in the United Kingdom, who meet eligibility criteria including having worked continuously for an employer for over 26 weeks, the right to request flexible working arrangements (Working Families, 2024). This legislation enables employees to request adjustments such as changes in working hours, remote working opportunities, job sharing, or any other flexible arrangement they may propose.
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