This Assignment is briefly going to explain what are the laws and regulations of company have to follow. In every country there are some type laws which are related to business, in which every business use these laws in their company when starting their new business. This helps them to arise issues and to understand how to interact with public and with other companies. The focus of this assessment will be also looking at UK second largest company ASDA to help to understand what are their policies and how do they over come these issues relating this with UK law policies.
The United Kingdom designates in three separate legal laws, which consists of the four main parts of the UK. England, Wales, Scotland and Northern Ireland. Most of these laws are applied within the whole of Britain and some of the laws are applied only in specific parts of the country. There are four different types of law, which are legislation, common law, European convention on human rights and finally European union law. However there is not a single written documents, which contains all these laws for the UK. (The UK Legal system,1963).
The UK constitution includes many different type of sources, some which are written for example legal documents and others, which are unwritten Constitutional conventions and they are very important due to the fact that they are agreed and established by the government. Some of the regulations are unsuccessful and unnecessary the UK government wants to ensure all the regulations are effective to protect people’s right, safety and health to ensure them they are free from unnecessary bureaucracy.
The judiciary prevents the state from using their powers in an unlawful manner. The judiciary is equilibriums through the common law, which includes Residual freedom, Actions of the state, legal disputes that are resolved by the judiciary and Royal prerogative (UK Judicial system, 2018).
Rules and Regulations:
There are different rules and regulations in every organisation that can be written constitutions, which are applied within the company such as ASDA. In UK ASDA is the second largest chain if supermarket selling food, cloths, electronic etc. one of the UK government department of human resource management also known as (HRM) has report that it is significant when recruitment and selecting employee and assessing the role of line managers work or any employee’s work who has given their best to company there must be a rewarded system in the organisation so that employee can be keep motivated. (The Human Resource planning of Asda Management, 2017)
On the other hand, every organisation has their own policies. According to, Macalister,T(2005). Asda employees are lodging same pay claim debating that they had been discriminated against on of gander. Worker was seen as differently particularly ‘women’s work’ they paid less than male workers. In the article Gender-equality (2018), the law of UK and EU it underline the principle that men and women should receive equal pay for equal work. Domestic legislation is one of the main legislation which apply in this issue from the equality Act 2010, in which it states that employee with same gander performing same work have the right of equal value of pay.
Roles of Government:
There are many different regulations that are set by the government to ensure it is effective. The role of government in law making is to control the number of new regulations by operating a ‘one in’ two out’ rule for business regulation. For example the government assessing the each regulation and their impact and reducing regulation for small businesses, which are unnecessary. The UK government has also reduce the cost of EU regulation on UK business
The role of government in making law is that they are concerned about the business., to meet the relevant legal requirements and ensuring that it does not harm the environment. There are some law that are set by UK governments which every organisation has to follow and meet the legal requirements for example in ASDA company, the suppliers are more concerned about the payment for good services they supply because their cooperation is essential in the production of this business, However if the payment are not made from big companies the suppliers can go and apple in court. There are different courts for different for different purpose hierarchy courts:
The Supreme court
The court of Appeal
The high court
The county court
The family court
The magistrates court
In England the common law system is where judge have more authority to interpret the law but are bounded by precedent. On the other hand in October 2015 according to UK Law a new specialist financial list handles which claims to deal with any issues related to the financial markets. The reason for this claim is brought, is mainly to raise issues of importance financial markets go through with.
House of Common and House of Lords:
Further more, in one of the report released by the Hoses of Lords (Harriet, House of Lords European union committee, 2014) state about food challenging waste of food in the EU and particularly in the UK are very high, they argue in their report that, retails and other big organisation including supermarkets such as ASDA have responsibility for preventing food wasting. Organisations must ensure that customer are aware of how to store food which can be done through putting labelling in a appropriate way, avoid any cancellation of food growth. (Harriet, House of Lords European union committee, 2014). Moreover, in this report it is also mentioned that retailers must ensure when promoting any food to consumers it must not be waste form the store to the household. (House of lords Euopean union committee, (2014), p26).
Moreover, The House of Commons are also considered about this issues they have also investigate in their report supermarkets must not show aggression when dealing with suppliers, using their market power to demand price, which they cannot afford ,Food Standards Agency, (2014)
Nevertheless in evidence ASDA has submitted their confirmation to the House of Commons Environmental Audit Committee in 2011 showing their dedication and a positive equally beneficial relation with their suppliers, which can be seen in ASDA policy as prove of evidence that they have a policy to not waste food by sending to landfill. Instead they give food either to charities or they convert their expire foods in to other alternative products which can be beneficial for something else. (House of Commons Enviromental Audit Committee,2012).
Company and Contract Law:
Company and Employment law:
In every organisation they have their own company, employment and contract law. These laws are made in every organisation to help in understanding companies rules and regulations. An employment contract can be traditionally in written agreement that are agreed and singed by the employer and employee. Most of the employment agreements are “implied” which can be verbal statements, though company’s memoranda or polices of company, which are adopted by throughout the employee’s employment.
ASDA are consider with legal and regulatory framework on the HRM practices which help to smooth out and work even better to develop more effect relation between employers and employees, flowing this framework it helped ASDA organisation to receive awards however, this is only possible when an employee follows the rules and regulation and work under the term and conditions they have agree, Yet the organisation have to consider the right of employee and data protection act, giving equal wages to man and women based on their performance this have positive impact on organisation (Asda group Ltd 2010).
Nevertheless, it is a law that every company should clear their terms and conditions of the contract that provide legal requirements of the company which employee has to follow once they are agree in a written documents and signed by the employer and employee. Although, the UK has not written constitution, but there are some statues that have been enacted by the UK parliament one of the statues is Human Rights ACT 1998 this includes ECHR into domestic law that allows citizens to have their human right before the domestic courts. Legislation.gov, (1998).
In every organisation there are some legal law agreements that are agreed by the employee and employer that involves looking after employee at different stages of work to understand. People in these days changes their jobs frequently within the same company for example when an employee shows their best performance they can be moved forward to another level of job such as team leader to department manager.
However, this can only be possible through showing some effort to organisation, which then can be transferred, to another department or location. Human recourse has the responsibility to make sure that all of the paper work has been done appropriately for example recruitment and selection is effectively done. Martell,K and carroll,S. (1995)
Termination of Contract:
According to, The Human Recourse Planning of ASDA Management, (2017). The reason of termination of employment can be for various reasons including retirement, dismissal and redundancy or moving into another department or area related to work. For example in ASDA Company when employees are retire for after very long period of time ASDA keeps in touch with their employees and often arrange reunions parties for their retire hard worker land long period employee to feel connected with company. However, if the employee in ASDA is dismissal there are some strict legal rules to follow such a written statement of practice under the Employment Acts where it gives the reason for dismissal.
Raising of Capital and lending fund:
Every organisation has their own strategies to establish a company, which help them to improve their performance to make their company successful. When a big companies such as ASDA starts their new business they often need capital, which means leasing some funds. These can be two type of capital that company can use to fund debt and equity. The first one is debt capital, which means loans from bank, personal loan or using credit card debt. This type of capital is usually used to raise and expand a company. Secondly the type two capital worked as sale of shares of stock, this can be preferred share or common shares.
In all this procedure, finance corporate involves in practice to assist which debt or equity is most cost-effective to use however different type of business required different type of finance amount depending on their requirements. For example if a person is building some sort of an app they can work at home with less finance required and on the other hand when big company are build such as ASDA they required more finance to start their business.
In UK, companies act law 2006 clearly state that shareholder rights directive is required when working with big companies to ensure general meetings are also taken seriously to be able work more effectively this will also help companies to discus any business related questions and solving their issues on the meeting agendas. Companies Act (2006).
Liquidation of the Company:
There are many successful companies in UK and all over the world; nevertheless most of the big companies go through the liquidation during to the fact of financial pressures. There can be various reasons for company liquidation such as poor management, poor finance system, employee leaving the company in a vulnerable position, lack of planning, over confidence taking nobody help last but least over or under trading. The UK liquidators.(2018)
First recognition of a liquidator is either by shareholders or the court. In these procedures liquidation can be solved though allowing the company assets into cash and also dismissing all the company’s liability and supplying all the funds of shareholder in an appropriate way, after when these steps have been carried out the company is formally dissolved.
There can be different type of liquidation, which involves different type of solutions. However, in most of the liquidation the company has to either sale their property followed by the complete procedure to close the company or the last result could be whatever the amount has been substance the company has to paid this as much as possible so that the company could stop happened to close. Real Business Recuse , (2018).
In conclusion, there are many different laws in UK which are used in big company such as ASDA which was my main focused company looking at their policy and procedure and how do this ASDA company deals with these types of issues which most of the company has to face.
The UK Legal System. (1963). online Available at: https://www.cilex.org.uk/about_cilex/about-cilex-lawyers/what-cilex-lawyers-do/the-uk-legal-system Accessed 16 Mar. 2018.
Judicial system (2018). Judicial system – United Kingdom -. online Available at: http://www.nationsencyclopedia.com/Europe/United-Kingdom-JUDICIAL-SYSTEM.html Accessed 17 Mar. 2018.
All Answers Ltd. November (2017). The Human Resource Planning Of Asda Management Essay. online. Available from: https://www.ukessays.com/essays/management/the-human-resource-planning-of-asda-management-essay.php?vref=1 Accessed 15 March 2018.
Macalister, T. (2005). Asda attacked over employees’ rights. online the Guardian. Available at: https://www.theguardian.com/business/2005/oct/17/politics.supermarkets Accessed 12 Mar. 2018.
Gender-equality.webinfo.lt. (2018). Overview of gender equality issues in United Kingdom. online Available at: https://www.gender-equality.webinfo.lt/results/uk.htm Accessed 12 Mar. 2018.
Harriet, D. (2014, April 6). MPs accuse supermarkets of ‘morally repugnant’ food waste. Retrieved from The Telegraph: HYPERLINK “http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10748455/MPs-accuse-supermarkets-of-morally-repugnant-food-waste.html” “_blank” http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10748455/MPs-accuse-supermarkets-of-morally-repugnant-food-waste.html
House of Lords European Union Committee. (2014). Counting the Cost of Food Waste: EU Food Waste Prevention. London: The Stationery Office Limited.
Food Standards Agency. (2014, November 27). Retail survey on levels of campylobacter in chicken published. Retrieved from The Food Standards Agency: HYPERLINK “https://www.food.gov.uk/news-updates/news/2014/13251/campylobacter-survey” “_blank” http://www.food.gov.uk/news-updates/news/2014/13251/campylobacter-survey
House of Commons Environmental Audit Committee. (2012, May 10). Written evidence submitted by ASDA. Retrieved from Parliament Publications and Records: HYPERLINK “http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvaud/879/879vw21.htm” “_blank” http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvaud/879/879vw21.htm
ASDA Group Ltd. (2010). All About ASDA. Retrieved from ASDA Group Website: HYPERLINK “http://your.asda.com/system/dragonfly/production/2012/01/04/12_59_19_568_All_about_Asda.pdf” “_blank” http://your.asda.com/system/dragonfly/production/2012/01/04/12_59_19_568_All_about_Asda.pdf
Martell, K. and Carroll, S. (1995). How strategic is HRM?. Human Resource Management, 34(2), pp.253-267.
Legislation.gov.uk. (2018). Human Rights Act 1998. online Available at: https://www.legislation.gov.uk/ukpga/1998/42/section/6 Accessed 19 Mar. 2018.
Companies Act (2006) Legislation.gov.uk.. online Available at: http://www.legislation.gov.uk/ukpga/2006/46/contents Accessed 20 Mar. 2018.
The UK Liquidators. (2018). UK Liquidation Experts Licensed Insolvency Practitioners – UKL. online Available at: http://www.ukliquidators.org.uk/ Accessed 13 Mar. 2018.
Real Business Rescue. (2018). What is the Company Liquidation Process and Procedure?. online Available at: https://www.realbusinessrescue.co.uk/business-liquidation-and-bankruptcy/process-and-procedure Accessed 16 Mar. 2018.