Chapter 18 ACCA F1

Chapter 18
Some legal obligations

1. Sources of law
European Community Law:
Regulations-directly applicable to all member states.
Directives is a directive to national governments to pass their own national
laws.
Regulations are law immediately; directives have to be enacted locally.
Most modern laws are legislation or statute, where they are written and passed by
European or domestic parliaments.
Case law can come from the very ancient common law or equity, and often depends on
the idea of precedent. Precedent means that if the case has been decided in a higher
court then in the future lower courts must follow the precedent for example set by the
higher court.
2. Data Protection Act implements Directive

95/46/EC
The Data Protection Act in the UK relates to personal data- related to people not
companies. The UK data protection Act apply to: personal data held manually and
personal data held on computer.
The act sets out certain principles:
Data shall be processed fairly and lawfully.
It can only be obtained for one or more specified and lawful purposes.
data shall be adequate, relevant and not excessive.
It must be accurate and kept up-to-date.
It mustnt be kept for longer than necessary.
Personal data shall be processed only in accordance with the rights of data subjects (A
person about whom data is held is known as the data subject).
Appropriate measures shall be taken against unauthorized and unlawful processing
and also care has to be taken over the accidental loss or damage to personal data.
Finally personal data must not be transferred to a country or territory outside the
European Economic Area unless that country or territory ensures an adequate level of
protection.
3. Risks to data
Human error - someone deletes an important file.
Technical malfunction or error - Hard disks can crash and data can be lost.
Catastrophic events - fire or a flood destroying computers and the data they
hold.
Malicious events- Sometimes it is done by hackers, people from outside the
organization who infiltrate the organizations data and change or steal it. It can
be the employees itself.
Industrial espionage or sabotage - Rivals obtain any data for their own
purpose or deleting your data to put you at a disadvantage.
Dishonesty- For example, illegally causing cash to be transferred, goods to be
delivered.
4. Health and safety employers duties

Both employer and employees are responsible for health and safety at
work
All work practices must be safe.
The work environment must be safe and healthy.
All plant and equipment maintained to necessary standard.
Information, instruction, training, supervision should encourage safe
working practices.
Clear communication of safety policy to all staff.
Employers must carry out risk assessments.
Share hazard and risk information with others.
Must introduce controls to reduce risks.
Should revise/initiate safety policies in the light of the above, must
identify employees who are especially at risk.
Must employ competent safety and health advisers.
5. Health and safety employees duties
Take reasonable care of themselves and others.
Allow the employer to carry out his or her duties (including enforcing
safety rules)
Not interfere intentionally or recklessly with any machinery or
equipment.
Inform the employer of any situation which may be a danger (this
does not reduce the employers responsibilities in any way)
Use all equipment properly
6. Health and safety policy
This will contain the following section:
A statement of the principle
A section on certain procedures- maybe relating to fire safety
procedures.
They may emphasize how important it is to comply with the law.
There may be a section on the detailed instructions about operating
machinery.
A section dealing with the training requirements.
7. Employment protection
Termination of employment:
Retirement
Resignation
Dismissal- there are three ways in which an employee can be dismissed:
(termination of contract, non-renewal- end of a fixed term contract,
constructive dismissal-occurs when the employer breaches the contract
of employment to such as extent that the employee is allowed to assume
that he or she has been dismissed.)
8. Fair/unfair dismissal
Fair dismissal
Redundancy
Legal impediment - For example, if to work in a particular organization
you have to be of a certain nationality and its discovered you are not, then
you can be dismissed.
Non-capability- Provided you were given adequate chance of
improvement and training, and you still cant do the job then you can be
dismissed for non-capability
Misconduct- Provided a suitable series of warnings have been issued to
give you a chance to improve you can be dismissed if the behavior
continues.
Other substantial reason- For example, if you are married to a
competitor your employer doesnt have to run the risk that commercial
secrets are going to be transferred.
Unfair dismissal
Unfair selection for redundancy

Membership and involvement in a trade union
Pregnancy
Insisting on documented pay slips
Carrying out certain activities in connection with health and safety
at work.
Wrongful dismissal
Deals purely with a breach of the contract of employment.
9. Remedies for unfair dismissal

Re-instatement- giving the employee the old job back
Re-engagement- giving the employee a job comparable to the old one
Compensation which may include redundancy pay, breach of
contract and punitive award.
10. Equal opportunities

Anti-discrimination laws can relate to:
Race
Sex
Disability
Religion
Sexual orientation
Age
Equal opportunities legislation identifies three types of illegal behavior:
Direct discrimination- An example of this would be if you advertised

for a salesman. That is direct discrimination because you are asking only
for male applicants or male employee.
Indirect discrimination example would be if you advertised for a
salesperson but then stipulated that that person had be two meters tall
with a large, black beard. Most courts would assume that this would favor
male applicants.
Victimization - This is where someone has complained about
discrimination and then later on within the workplace they are blamed or
discriminated against because they complained.
11. Diversity
Diversity that the composition of the workforce reflects the population as a
whole.
A diverse organization will better understand and meet the needs of
customers.
There are reasons for diversity:
Likely to attract a wider range of candidates. Diversity means more than race
or sexual diversity; it can also mean offering people part-time work or
working from home.
A diverse workforce brings a variety of skills
customers are likely to feel more comfortable
You may be able claim the moral high ground by having a diverse workforce
and this of itself may be attractive to customers, clients, and potential
employees.

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Chapter 18 ACCA F1

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Chapter 18

Some legal obligations

2. Data Protection Act implements Directive

4. Health and safety employers duties

Unfair selection for redundancy

9. Remedies for unfair dismissal

10. Equal opportunities

Equal opportunities legislation identifies three types of illegal behavior:

Direct discrimination- An example of this would be if you advertised

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