The Insolvency And Employment Law

Given the culture these days of “No Win - No Fee” solicitors, the majority of employers have legal expenses cover that allows them to be guided through all employment issues by professionals who have the expertise in employment law. Owners/managers are advised to use this service for even the smallest employment issue as not following due process can prove costly for employers. In addition, these experts and the advice they give are non-biased and in accordance with current employment legislation.

We need employment law to comply with each relevant legislation. These laws regulates to the relationship between employee and their employer to ensure that they comply with the processes of hiring and equal pay, fair disciplinary/dismissal procedures along with other work placed regulations.

Layoffs are not always the best solution for a decline in company profits. A business must resolve the conflict that exists between their responsibility to meet economic targets and the ethical responsibility of non-maleficence. Furthermore, it must be determined if the layoffs would even maximize stakeholder welfare from a utilitarian perspective (Arce & Xin Li, 2011).

Relevant Law – Duties to prevent insolvent trading, Section 588G of Corporation Act, 2001, Insolvent trading prohibition and Section 180 duty of care, skill and diligence.

This essay will explain the concepts of separate personality and limited liability and their significance in company law. The principle of separate personality is defined in the Companies Act 2006(CA) ; “subscribers to the memorandum, together with such other persons as may from time to time become members of the company are a body corporate by the name contained in memorandum.” This essentially means that a company is a separate legal personality to its members and therefore can itself be sued and enter into contracts. This theory was birthed into company law through the case of Salomon v Salomon and Co LTD 1872. This case involved a company entering liquidation and the unsecured creditors not being able to claim assets to compensate them. The issue in this case was whether Mr Salomon owed the money or the company did. In the end, the House of Lords held that the company was not an agent of Mr Salomon and so the debts were that of the company thus creating the “corporate Veil” .

The thesis deals with the above concepts and discusses how the Companies Act 71 of 2008 (the Act) modified the law, particularly, by extending the legal capacity of a company and extinguishing or modifying the above rules which had previously restricted a company's ability

The other fundamental issue that Charles raises is the treatment that the employees get from both the law and the proprietors/accounts. He says that employees in most instances are treated as property that belongs to the owner of the business and recorded as costs (salary/allowances) and not as assets. This effectively means that they are treated as things that are supposed to be minimized just like any other costs. This is a trend that needs to be changed and the employees need to be treated as cherished community together with the proprietors and the stakeholders. It should be a community that has members who are proud to be members of that particular community, allowed to express their views on issue related to them and the organization and generally have a free environment to

The aim/objectives of this assignment are to explore employee relations in detail, including the psychological contract, differences between fair and unfair dismissals, redundancy, and the direct link to my organisation. Pershing is a medium sized financial services company, who has seen strong growth over the last two years during the economic downturn.

Lipton, P. & Herzberg, A. (2010). Understanding Company Law. (15th ed.). Pyrmont, NSW: Lawbook Co.

An insolvency practitioner can conduct a solvency review of your company and outline available options, these may include refinancing, restructuring or changing your company’s activities, or appointing an external administrator.

Bennett-Alexander, D., & Hartman, L. (2009). Employment law for business. (6 ed., pp. 247-249). New York, NY: McGraw-Hill/Irwin.

Not following all steps for lawful redundancy procedures can impact on morale of business increasing staff turnover in the future and maximise the risk of legal dispute at tribunal. Legal remedies exist to prevent or punish employees for not following law.

As already pointed out, restructuring involving mergers and acquisition sometimes usually involve replacing and/or eliminating some job positions. Such restructuring are mainly intended to make an organization more effective by eliminating unproductive process or cutting down unnecessary cost; such as employee related cost. While these actions might position the organization competitively in the market place, it can potentially harm some employees. Nonetheless, the unemployment compensation law is a regulation that aims to promote human dignity by providing monetary support to those employees who have lost their job through no fault of their own. The employers can support this regulation by adhering fully to tax laws that support this program. This is because it is from these taxes

Imagine a business full of employees who would like to strike or walk out due to the fact of the mother company has cancelled several of their benefits or an employee who has had multiple issue with work, home

The aim of this Assessment is to demonstrate an understanding of employment regulation and how it is enforced. Other areas covered include; how to manage recruitment, manage issues relating to pay and working time lawfully and how to ensure that staff are treated lawfully when they at work. Finally it will cover managing performance and disciplinary matters lawfully.