Employment Law Implied Terms Quiz

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Questions and Answers

What duty does an employer have regarding employee treatment according to common law implied terms?

To offer bonuses based on performance

To ensure job security

To provide a generous salary

To treat the employee with respect (correct)

Under the Working Time Regulations 1998, how many weeks of paid annual leave are employees entitled to?

6 weeks

4 weeks

5.6 weeks (correct)

8 weeks

In the context of construction dismissal, which of the following is a necessary requirement for a claim to be valid?

The employee must have worked over 10 years

The employee must demonstrate a loss of income

The employee must show breach of trust and confidence (correct)

The employer must have declared bankruptcy

Which implied term states that the employer will not conduct business in a way that damages the employee's reputation?

Malik v BCCI SA Signup and view all the answers

What is one implied duty of the employer regarding work under common law?

To provide work Signup and view all the answers

Which of the following is not a part of the right to breaks under the Working Time Regulations?

1 hour lunch break every day Signup and view all the answers

In terms of collective bargaining, which of the following is a source of implied terms in employment contracts?

Collective bargains Signup and view all the answers

What is a requirement regarding overtime work according to common law as established in Gilbert v Goldstone Ltd?

It must be reasonable and not excessive Signup and view all the answers

What is the purpose of the statutory s.1 statement as per the Employment Rights Act 1996?

To set out the terms of employment Signup and view all the answers

Which of the following is an example of an implied term in a contract?

Minimum wage requirements Signup and view all the answers

Under the Employment Rights Act 1996, what is the required redundancy notice period for an employee with 3 years of service?

Three weeks' notice Signup and view all the answers

What must occur for express terms of a contract to be modified?

Agreement from both parties Signup and view all the answers

What is one of the fundamental obligations an employee must fulfill?

Must personally perform the work Signup and view all the answers

Which of the following statements about health and safety is correct?

Both employers and employees have duties regarding health and safety Signup and view all the answers

Which case supports the notion that substitution in employment may indicate a non-employee relationship?

Express & Echo Publications Ltd v Tanton Signup and view all the answers

In terms of implied terms in contracts, which of the following must be true for a term to be implied?

It must be necessary for business efficacy or so obvious it goes without saying Signup and view all the answers

What is a key factor that determined the employment status of Smith in the Pimlico Plumbers Ltd v Smith case?

The personal service aspect Signup and view all the answers

According to the Employment Rights Act 1996, which of the following is the definition of a 'worker'?

An individual with a contract to personally perform work Signup and view all the answers

According to the Working Time Regulations 1998, which of the following can be overridden?

Working hour limitations Signup and view all the answers

What does the concept of 'mutuality of obligation' refer to in an employment context?

The employer must provide work and the employee must accept it Signup and view all the answers

In the context of employee rights, which of the following rights is exclusively available to employees and not to workers or self-employed individuals?

Parental leave and pay Signup and view all the answers

Which case established that LLP members can be considered workers under certain conditions?

Clyde and Co v Bates van Winkelhof Signup and view all the answers

Which of the following factors is NOT one of the considerations when determining if a company director can be classified as an employee?

Personal tax obligations Signup and view all the answers

What type of terms are often implied in employment contracts, even if not expressly stated?

Terms based on industry standards Signup and view all the answers

Study Notes

Implied Terms

Davies v Richard Johnson & Nephew Ltd: Employers cannot hinder employees from fulfilling their contract of employment. Employers are entitled to take steps to improve performance, but only in a reasonable manner.
Gilbert v Goldstone Ltd: Overtime requirements for employees must be reasonable and not excessive.
Malik v BCCI SA: Employers must conduct business honestly and avoid actions that could damage employees' reputations.
BCCI SA v Ali (No 3): Employees must prove that the stigma caused by an employer's actions has hindered their ability to find new employment.
Stevenson v Teesside Bridge and Engineering Ltd: Implied terms can be derived from industry practices and national agreements.
Malik v BCCI SA (in liquidation): Employers are obligated to maintain a relationship of mutual trust and confidence with employees.
Woods v WM Car Services (Peterborough) Ltd: An employer's actions don't have to directly intend to breach the contract for it to be considered a repudiation.
Casson Beckman & Partners v Papi: An implied term can only be added to a contract if it would have been understood as existing at the time it was created.

Sources of Terms

Collective bargaining agreements
Customary practices in a specific industry
Work rules, company handbooks, and policy statements

Implied Duties of the Employer

To pay wages
To provide work (Collier v Sunday Referee Publishing Co Ltd)
To exercise reasonable care for their employees' safety
To treat employees with respect

The Working Time Regulations 1998

Maximum working week: 48 hours, but employees can opt out of this limit.
Paid annual leave: 5.6 weeks
Bank holidays: Considered part of the 5.6 weeks of paid annual leave.
Rest breaks:
- Daily rest: 11 hours rest within each 24-hour period
- Weekly rest: 24 hours rest within each 7-day period
- In-work rest: 20 minutes rest for employees working more than 6 hours.

Dismissal at Common Law

Actual dismissal: When an employer terminates an employment contract.
Constructive dismissal: Arises when an employer's actions make it impossible for the employee to continue working, forcing them to resign.

Gig Economy

Short-term, temporary, and freelance work
Pimlico Plumbers Ltd v Smith: The Court ruled that Smith was a worker, not self-employed, due to the personal service element of his role and the level of control exerted by the company.
Uber BV and others v Aslam and others: The Court determined that Uber drivers were workers because of the significant control Uber exercised over them.

Statutory Employment Requirements

Contract of employment: Not a statutory requirement.
Statement of terms of employment (s.1 statement): Legally required for all employees under the Employment Rights Act 1996.
Changing contract terms: Can only be changed with mutual agreement. Conditions can be changed by employers with reasonable notice (Cadoux v Central Regional Council).

Types of Contract Terms

Express terms: Terms that both parties have explicitly agreed upon. They can be written or oral and found in the s.1 statement, offer letter, job advert, job specification, and interview discussions.

Statutory Implied Terms

National Minimum Wage Act 1998: Sets the minimum wage for different age groups. (Current rate is £11.44)
Employment Rights Act 1996 (s.86): Redundancy notice periods.
- Duration between 1 month and 2 years: 1 week's notice
- Duration between 2 and 12 years: 1 week's notice for each year
- Duration 12 years or more: 12 weeks' notice
Equal Pay Act 1970: Requires equal pay for equal work and work deemed to be of equal value, regardless of gender.
Health and Safety at Work etc. Act 1974: Requires employers and employees to prioritize health and safety in the workplace.
Working Time Regulations 1998: Limit working hours, the only statutory term that can be overridden.

Tests for Implied Terms

Business efficacy: The implied term must be necessary for the contract to operate effectively.
Obviousness: The implied term must be so obvious that it goes without saying.
Mears v Safecar Security Ltd: Courts consider all relevant facts and circumstances before implying a term into a contract.

Advisory, Conciliation and Arbitration Service (ACAS)

Provides free and impartial advice to employers and employees.

Employment Tribunal System

Employment Tribunal: Initial hearing of employment disputes.
Employment Appeals Tribunal: Reviews decisions made by Employment Tribunals.
Court of Appeal: Highest court for appeals in employment cases.

Is the Individual an Employee?

Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance: Three key elements:
- Personal service: Employee obligated to perform the work themselves.
- Mutuality of obligation: Employer obligated to provide work, employee obligated to perform it.
- Control: Employer maintains a level of control over the employee's work.
Express & Echo Publications Ltd v Tanton: A term allowing for substitution, even if only in specific circumstances, can indicate a worker rather than an employee.
James v Redcats (Brands) Ltd: A term allowing substitution only during specific situations, like holidays and sickness, supports the employee designation.
Cotswold Developments Construction Ltd v Williams: Focus on the individual's obligation to work and the employer's obligation to provide work.
Wilson v Circular Distributors Ltd: An individual must work when work is given by the employer.

Director as an Employee

Secretary of State for Business, Enterprise and Regulatory Reform v Neufeld: Determining whether a company director is also an employee involves three considerations
- Contract of employment: Existence of a formal contract of employment.
- Control and subordination: The level of control and subordination the company exercises over the director.
- Mutuality of obligation: The obligation of the company to provide work and the director to perform it.

The Worker Definition

Employment Rights Act 1996 (s.230(3)): Defines a worker as someone who:
- Is under a contract of employment or
- Performs work personally under a contract with someone else, and is not in business on their own account.

LLP Members as Workers

Clyde and Co v Bates van Winkelhof :
- Partners in LLPs can be workers if they are providing a service under a contract, even though they have some level of control within the business.
- Key factors: contract of employment, contract to personally perform work, and whether or not the individual is in business for themselves.

Employee, Worker, and Self-Employed Rights

Employee rights: Unfair dismissal, parental leave and pay.
Employee and worker rights: Written statement of terms, National living wage.
Employee, worker, and self-employed rights: Health and safety rights, limited discrimination protections.

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Description

Test your understanding of implied terms in employment law with this quiz. It covers essential case law, including Davies v Richard Johnson & Nephew Ltd and Malik v BCCI SA. Evaluate your grasp of key principles that shape employer-employee relationships.