Identify and explain what legal risks have emerged at the Newcastle office and the best course of action to take in respect of each issue

Title of Module

Employment Law

Module Code

7ELW

Level

7

Credit value

15

Assessment method

Assignment based on case study

or

3 hour open book examination based on pre-seen case study

Learning outcomes:

1. Explain the core principles that underpin employment law as it applies in the UK (or Ireland), including common law, their purpose, origin and practical implications.

2. Advise colleagues about significant legal implications of decisions, plans or proposals in the employment field.

3. Advise about the appropriate action that should be taken in workplace scenarios where employment regulation applies.

4. Play a leading role in determining the appropriate organisational response when legal action on the part of a worker or employee is anticipated, threatened or taken.

Assessment brief/activity

Case Study

Care for all Ltd has a number of care homes nationwide. The business started out over twenty years ago, but in the last five years has experienced rapid growth. The demand for places at their care homes has increased and this is largely due to effective marketing practices, good staff and satisfied customers. Ann Handy, is the director for the business and is a very hands on director. She is keen to be in the know about what happens at her care homes and if any issues arise she normally takes an interest until she is satisfied that the matter is resolved. Currently Care for all Ltd employs over 300 employees nationwide. The main base for the care homes is in Birmingham and this is the largest care home that they have. There are two care homes in the North West (Liverpool and Manchester) and a further care home in Newcastle. The management structure for each care home is the same and an illustration is provided below.

All care home senior managers report directly to Ann Handy, in total she has four care home managers reporting directly to her. A recent incident in the Newcastle office has led to some concern and as a result Ann Handy has decided to appoint an HR Manager. Wanting to ensure the matter is handled effectively she believes a degree of expertise in dealing with people issues is needed. Normally her Care Home Senior Managers would deal with these matters but as the Newcastle Senior Manager, Alan Macgregor, is new and not especially good with people issues it is felt that a HR specialist is needed.

Ann Handy is aware of someone she has worked with before and contacts her about the HR post. Kamaljit Bains is appointed as the new HR manager and will also be reporting directly to Ann. Kamaljit has worked in HR for a number of years and has known Ann for most of her working life. After a casual chat, Ann persuaded Kamaljit to consider this role. Initially Kamaljit was a little apprehensive as she had just returned from a career break and was aware that a number of new developments within employment law will have emerged. However with some persuasion by Ann and re-assurance of support Kamaljit took on the role. Her first task was to address the issues at the Newcastle office. She has been advised of the following:

1. Colin Tate is a member of the administrative team and has worked at the Newcastle care home for over six years. Colin has recently been subject to an investigation (Conducted by Alan Macgregor) as it is alleged he has made damaging comments about the level of support at the care home on his Facebook account. On examination Kamaljit discovers Colin’s comments to be highly damaging to the reputation of the Care home.

The comments stated “How do employers get away with it, another challenging day at work! Had enough now can’t bear to see residents treated this way. Call themselves a “Care Home” - joke???”

Colin has protested against his invitation to a formal disciplinary meeting and claims his comments were made in his private time and are not his employer’s business. Furthermore there is no policy or internal rules that indicate restrictions on this matter. He has always been an exemplary employee and considers that he is being treated unfairly. The hearing is heard by both Alan and Kamaljit and Colin is advised of the decision to dismiss him. It is strongly believed that his comments on social media have led to enquiries and concern from family members whose relatives are residents at the care home.

2. Furthermore there is some concern about an issue which is emerging not only within the Newcastle care home but across all other care homes. Julie Tate is a care-worker and looks after resident’s needs. This involves helping residents to sit up, get into bed and assistance with personal hygiene. Julie has been told that she should not wear her necklace when working as this can present a health & safety issue. Julie has responded by insisting the necklace with a crucifix is a representation of her religion and as a strong follower of the Catholic faith she refuses to follow and obey any rule that requires her to remove the necklace. Kamaljit believes that it is a reasonable request and has advised Julie she either comply with the rule or face dismissal.
3. The final issue relates to an ex-employee at the Care home. Ali Khan, who has worked in the maintenance team. After nine months service his employment was terminated three weeks ago. However the circumstances surrounding his departure were not straightforward. Ali had concerns with the maintenance of some of the electrics within the care home. His belief was that they did not reflect the required standard and presented a health risk. Ali raised the point with his senior manager, James Magpie. James advised Ali that since Alan Macgregor had arrived, the budget was very tight and that they had to do what was best for the business. Ali advised James he had been in touch with the Health & Safety Executive as there was a clear danger for residents and staff. Following on from this James & Ali had a heated argument and Ali was dismissed on the spot. On dismissal Ali received pay for holidays accrued and not yet taken as well as pay up to the date of termination. Alan has asked Kamaljit to complete a recent reference request that has arrived for Ali, Kamaljit does so explaining Ali was not trustworthy.

The HR Manager has found these issues to be quite challenging and has updated Ann on the actions taken. Ann is beginning to have doubts about Kamaljit’s ability. Kamaljit, by contrast, she sees the issues at Newcastle as being a consequence of Alan Macgregor’s lack of capability. However Ann is reluctant to take this on board and this is largely due to the fact that Alan’s appointment was done as a favour to a long standing friend. Ann has now been approached directly with respect to some HR issues that have been escalated to her:

1. Ann has received a letter of appeal from Colin against the decision to dismiss him. In preparation for the appeal hearing Ann has asked for a copy of all the notes and documents that were used when deciding on dismissal. Unfortunately there were no notes from the meeting and Ann is beginning to worry. Once Ann has had an opportunity to reflect she decides to begin a discussion about a settlement agreement and seeks clarity from her private lawyer about the practical steps involved in devising a settlement agreement.
2. Ann is unsure of the range of obligations she has as an equal opportunities employer and begins to feel uncomfortable about the expectations on her as an employer. In order to remedy this Ann seeks guidance through her private solicitor on the contents and relevance of an equal opportunities policy, and guidance on some practical advice on how to deal with recent performance issues with respect to Alan & Kamaljit. 
3. Identify and explain what legal risks have emerged at the Newcastle office and the best course of action to take in respect of each issue.
4. Ann has become quite ill over the last few weeks and having to deal with all of these issues has led her to question her own ability and reflect on her recent recruitment and selection decisions. She has been approached by an old school friend to buy her business. Ann is now considering early retirement and is therefore keen to explore this option. However Ann feels responsible for her 300 employees and is keen to understand if selling means all her employees would automatically be transferred to the new company and what this means for them in terms of job security.

Answer the following questions in no more than 3000 words (Assignment or in a three hour exam) Your answers should be cogent, articulate and focused, yet draw on as many sources of worthwhile and authoritative evidence that you can find.  All such sources should be properly identified and referenced.    

Section A

1. Identify and explain what legal risks have emerged at the Newcastle office and the best course of action to take in respect of each issue.

2. Advise Ann Handy of the practical steps that need to be taken in order to ensure equality and performance are implemented /managed effectively at Care for all Ltd. 

Explain the relevant legal consequences relating to employment matters that would need to be considered if Care for all Ltd is sold to a friend.