Assignment Cover Sheet

To be filled by the Student

Name of the Student :MOHAMMATHU ITHREES MOHAMED ISHRAQ

Name of the Institute : CEYLON CAMPUS COLOMBO Registration

No:CCA2206003 Batch No:005

Assessment Information

Qualification : Diploma in Business management

Course Code : DIBM

Assessment Title & No’s : Module Assignment of “Business Law” (Assignment 8 of 1)

Learning outcomes and grading opportunities:

LO 01: Understand and completion of each task
.
Achieved Level AC1.1 AC1.2 AC1.3
LO 02: Understand the real need of a business organization
Achieved Level AC2.1 AC2.2 AC2.3 AC2.4
LO 03: Critically evaluate the given tasks
Achieved Level AC3.1 AC3.2
LO 04: Understand how to implement a chosen strategy or method
Achieved Level AC4.1 AC4.2 AC4.3

Merit and Distinction Descriptor

D. M. P. F.

Date Issued : Date Due :

Date of Submission:

Assessor : Date Assessed:

Internal Verifier (IV): Date of IV:

General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and be sure to fill the details correctly.
2. This entire brief should be attached in first before you start answering.
3. All the assignments should prepare using word processing software.
4. All the assignments should print in A4 sized paper, and make sure to only use one side printing.
5. Allow 1” margin on each side of the paper. But on the left side you will need to leave room for
binding.
6. Ensure that your assignment is stapled or secured together in a binder of some sort and attach
the Softcopy (CD) of your final document, system on last page.

Word Processing Rules

1. Use a font type that will make easy for your examiner to read.
H1: Font Size 16 (Main Topic for the Report) & Bold
H2: Font Size 14 (section Heading/Sub Topics) & Bold
Body Content: Font Size should be 12 points, and should be in the style of Time New
Roman.
2. Use 1.5-line word-processing and make sure to justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function on the word processor to insert Your Name (First Name & Surname),
Student ID, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help edit your
assignment.
6. Ensure that your printer’s output is of a good quality and that you have enough ink to print your
entire assignment.

Important Points:
1. Check carefully the hand in date and the instructions given with the assignment. Late
submissions will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Don’t leave things such as printing to the last minute – excuses of this nature will not be
accepted for failure to hand in the work on time.
4. You must take responsibility for managing your own time effectively.
5. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
6. Failure to achieve at least a PASS grade will result in a REFERRAL grade being given.
7. Non-submission of work without valid reasons will lead to an automatic REFERRAL. You
will then be asked to complete an alternative assignment subjected to a penalty fee of late
submission and uncompleted work.
8. Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them, using the HARVARD referencing system, in you text and any bibliography,
otherwise you may be guilty of plagiarism.
9. If you are caught plagiarizing you could have your grade reduced to A REFERRAL or at worst
you could be excluded from the course.

Report Content
1) Cover Page:
(Given 1st page – assignment Coversheet)

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 2) Student Declaration (find Bellow)

3) Title Page:
This should consist with a suitable topic for your report content. Example,
Importance of management in to the business / significant study of business
management/ Proposed Business Plan for XXXXXXXXXXX

4) Executive Summary:
Give a short summary of your assignment context and objective of submission the
report.

5) Table of Content:
Use suitable topics and sub topics for each tasks which gives the idea of the content

6) Content/ Answers for given Tasks

7) Conclusion:
Give a conclusion to your report and learning outcomes gains from the course and
explained how you can apply those learning outcomes in making your business plan.

STUDENT DECLARATION
I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it as
my own without attributing the sources in the correct way. I further understand what it means to copy
another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
2. I understand the plagiarism and copying policy of the Ceylon Campus Sri Lanka
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspects of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: …………………………… Date: 26.01.2023 …………

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Program Diploma in Business Management
DIBMM08 Business Law
Module Assignment Consulting Report

ASSIGNMENT
The Purpose and Context
This assignment will help you to develop your understanding of the module of Business Law and
application of Employment Law and Law of Contract in day-to-day business operations and how
it impacts on organizational performances. You will learn what will be the legal aspects of human
resource within the organizations and identify the required support from organizational legal
department or attorney of law from outside when operates in the corporate sector.

Assignment Instructions
Answer all task questions given in the assignment with required type of answering

Requirement
Please create a report for the top management considering that you are hired as Management
Consultant by a Local Apparel manufacturing firm which looks for your services in advising in
organizational Senior Management and HR Department on Importance of Business Law and
application on Employment Law and Contract Law within the organizational context and please
include the following in your consulting report.

Task 01
1. Identify the need and importance of Law in the society.
2. Briefly Explain the main branches of Law.
3. Identify the Involvement of Law in to Business
4. Discuss on Common Commercial Law Legal Issues in the business context.
5. Why and when do you need a business law attorney?

Task 02
1. What is Employment Law
2. Briefly explain the key areas covered by Employment Law.
3. Differentiate between Employment Law & Labor Law with the organizational context.
4. Discuss Key Objectives of Labor Law
5. Describe the role and contribution of ILO to the world Social Economical context.

Task 03
1. What do understand by the term Employment
2. Briefly explain the different types of Employment within the business organizational
context.
3. Discuss Basic Employment Rights for all types of employees in an organization.
4. Briefly Explain Employment Contract
5. Discuss Associated Employment Rights for Contracts.

Task 04
1. What do understand by the term Contract
2. Briefly explain the major elements of a Contract
3. Discuss basis for Commercial Contract within organizational context.
4. Briefly Explain Termination of a Business Contract

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 5. Discuss what and possible situations for breach of an Agreement or Contracts.

Required word count 2000-2500

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Acknowledgement
In performing our assignment, I had to take the help and guideline of some respected persons,
who deserve our greatest gratitude. The completion of this assignment gives us much Pleasure.
I would like to show my gratitude lecturer on Ceylon Campus Colombo for giving me a good
guideline for assignment throughout numerous consultations. And after that I would also like
to expand our deepest gratitude to all those who have directly and indirectly guided me in
writing this assignment. So, I really thank you all for giving me this opportunity.

Thank you…

M.I.M.ISHRAQ

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Table of Contents
Acknowledgement ---------------------------------------------------------------------------------------------------------- 6
Introduction ------------------------------------------------------------------------------------------------------------------- 8
Business Law ----------------------------------------------------------------------------------------------------------------- 9
Implications of Employment ---------------------------------------------------------------------------------------- 9
Employment Law------------------------------------------------------------------------------------------------------------ 9
Executive Summary ------------------------------------------------------------------------------------------------------- 10
Task 01 ------------------------------------------------------------------------------------------------------------------------ 11
1. Identify the need and importance of Law in the society. ------------------------------------------- 11
2. Briefly explain the main branches of Law. -------------------------------------------------------------- 12
3. Identify the Involvement of Law in to Business ------------------------------------------------------- 12
4. Discuss on Common Commercial Law Legal Issues in the business context. ---------------- 13
5. Why and when do you need a business law attorney? ----------------------------------------------- 14
Task 02 ------------------------------------------------------------------------------------------------------------------------ 15
1. What is Employment Law ------------------------------------------------------------------------------------ 15
2. Briefly explain the key areas covered by Employment Law. -------------------------------------- 15
3. Differentiate between Employment Law & Labor Law with the organizational context. 16
Employment Law--------------------------------------------------------------------------------------------------- 16
Labor Law ------------------------------------------------------------------------------------------------------------ 16
4. Discuss Key Objectives of Labor Law -------------------------------------------------------------------- 17
5. Describe the role and contribution of ILO to the world Social Economical context. ------ 18
Task 03 ------------------------------------------------------------------------------------------------------------------------ 18
1. What do understand by the term Employment -------------------------------------------------------- 19
How Employment Works ---------------------------------------------------------------------------------------- 19
Requirements for Employment -------------------------------------------------------------------------------- 19
2. Briefly explain the different types of Employment within the business organizational
context. -------------------------------------------------------------------------------------------------------------------- 20
3. Discuss Basic Employment Rights for all types of employees in an organization. ---------- 21
4. Briefly Explain Employment Contract ------------------------------------------------------------------- 21
Pros and Cons of an Employment Contract --------------------------------------------------------------- 22
5. Discuss Associated Employment Rights for Contracts. --------------------------------------------- 23
Task 04 ------------------------------------------------------------------------------------------------------------------------ 23
1. What do understand by the term Contract ------------------------------------------------------------- 23
Process of Contract ------------------------------------------------------------------------------------------------ 24
2. Briefly explain the major elements of a Contract ----------------------------------------------------- 27
3. Discuss basis for Commercial Contract within organizational context. ----------------------- 28
4. Briefly Explain Termination of a Business Contract ------------------------------------------------ 29

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 5. Discuss what and possible situations for breach of an Agreement or Contracts. ----------- 29
References-------------------------------------------------------------------------------------------------------------------- 30

Table of Figures
Figure 1 Process of Contract ------------------------------------------------------------------------------------------ 24
Figure 2 Essential Elements of a Contract ------------------------------------------------------------------------ 25

Introduction
Business law is the body of law that governs business and commercial transactions. It covers
the laws governing the formation of business entities, the sale of goods and services, contracts,
and other aspects of business operations. Business law is an important part of the legal

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framework that governs how businesses operate and how they interact with each other and with
their customers. The laws governing Employment Law and Contract Law are also an integral
part of Business Law, and are important for any organization to consider in order to properly
manage its workforce and operations.

As a Management Consultant, I have been hired by a local apparel manufacturing firm to

provide advice to its senior management and HR department on the importance of business law
and its application on employment law and contract law in their organizational context. In this
consulting report, I will provide an overview of business law and its relevance in the context
of the apparel manufacturing firm, discuss the components of employment law and contract
law, and make recommendations for the firm on how to best use business law to achieve its
business objectives.

Business Law
Business law is a broad term that refers to the laws governing the formation, operation, and
dissolution of businesses. It encompasses a wide range of topics, including contract law,
intellectual property law, tax law, employment law, and more. Business law is essential for any
business. It provides clear rules and regulations for businesses to follow, and it protects the
rights of both employers and employees. It also provides a framework for resolving disputes
that may arise within the organization.

Implications of Employment
Law Employment law is an important part of business law, as it governs the relationship
between employers and employees. This law is designed to protect the rights of both parties
and to ensure that employers comply with workplace safety regulations. It also regulates the
hiring and firing of employees, as well as various other aspects of the employer-employee
relationship.

Employment Law
Employment law is a branch of law that governs the legal relationship between employers and
employees. It sets out the rights and obligations of both parties, including the right to minimum
wage and other employment benefits, the right to be free from discrimination and harassment,

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and the right to be protected from unfair dismissal. Employment law also covers issues such as
workplace safety, health, and welfare, collective bargaining, and union activities.

Executive Summary
This report provides a comprehensive overview of the importance of Business Law and the
application of Employment Law and Contract Law within the organizational context. It
provides insight into the key principles of Business Law and how they apply to the operations
of the Local Apparel Manufacturing Firm. Additionally, the report also discusses important
Employment Law and Contract Law considerations that should be taken into account when
managing the workforce. Finally, the report provides a set of recommendations for Senior
Management and HR Department for effective implementation of Business Law in the Local
Apparel Manufacturing Firm.

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Task 01
1. Identify the need and importance of Law in the society.
Law is essential to the functioning of a healthy and civilized society. It provides a framework
for individuals and organizations to interact with each other in a predictable, secure and orderly
manner. Law ensures that individuals in society are held accountable for their actions, and it
also serves to protect the rights and freedoms of citizens. Law also helps to ensure that disputes
are settled fairly and in an equitable manner, and it can help to promote social cohesion and
stability. Law helps to maintain public order and safety, and it can be used to create and enforce
a range of social policies and regulations. Finally, law serves as a deterrent for potential
criminals and helps to ensure that justice is served.

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2. Briefly explain the main branches of Law.
The main branches of law include civil law, criminal law, administrative law, and international
law.

Civil law is a system of laws that govern disputes between private individuals or organizations.
This includes areas such as contract law, tort law, property law, and family law.

Criminal law is a system of laws that defines and regulates criminal conduct, such as murder,
theft, or fraud. It also establishes the penalties for those who commit criminal acts.

Administrative law is a system of laws that govern the activities of public agencies and
administrative bodies. This includes areas such as environmental law, labor law, and education
law.

International law is a system of laws that govern the relations between states and other
international actors, such as international organizations and individuals. This includes areas
such as international trade law, human rights law, and the law of war.

3. Identify the Involvement of Law in to Business

Law is a major factor in the modern business world. It plays a role in virtually all aspects of
business, from the formation of a business to the day-to-day operations. The law provides the
framework that governs the way a business can be run and the legal obligations a business must
follow.

1. Forming a Business

When starting a business, the first step is to determine the type of business entity to form. This
decision involves researching the different types of business entities, such as sole
proprietorships, partnerships, limited liability companies, and corporations, and understanding
the legal requirements and liabilities of each.

2. Business Contracts

Business contracts are legally binding documents that outline the rights and responsibilities of
the parties involved. It is important to understand the legal obligations of a contract before
signing it and to ensure that the contract accurately reflects the agreement of the parties.

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3. Business Regulations

All businesses must comply with applicable laws and regulations. These regulations can range
from labor laws, to environmental regulations, to industry specific regulations. It is important
for businesses to understand the applicable laws and regulations and to ensure that they are in
compliance.

4. Discuss on Common Commercial Law Legal Issues in the business

context.
Common commercial law legal issues in the business context include contract formation and
disputes, breach of contract, dispute resolution, product liability, consumer protection,
intellectual property, antitrust and competition, corporate governance, securities and financial
regulation, labor and employment law, and international trade.

Contract formation and disputes involve the negotiation of terms and conditions, performance
of contract obligations, and remedies for breach of contract. Breach of contract can include
failure to perform, delay in performance, and non-performance. Dispute resolution processes
such as arbitration and mediation can be used to resolve contract disputes.

Product liability is the legal responsibility of a manufacturer or seller to ensure that its products
are safe and fit for their intended purpose. Consumer protection laws protect consumers from
unfair and deceptive practices by businesses. Intellectual property laws protect the rights of
creators and inventors to the use of their creations and inventions.

Antitrust and competition laws prevent companies from engaging in anti-competitive practices
such as price-fixing and market manipulation. Corporate governance laws ensure that
companies are properly managed and that their board of directors has the proper oversight.
Securities and financial regulation laws protect investors from fraud and other unethical
practices.

Common commercial law legal issues in the business context include issues related to contracts
disputes, intellectual property (IP), employment law, defamation and international trade.

1. Contract Disputes

Businesses must enter into contracts to conduct business operations. When one party fails to
fulfill their obligations as outlined in their contract, the other party is likely to pursue a legal

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remedy. Common contract disputes include failure to perform, breach of contract, and
misrepresentation.

2. Intellectual Property Rights

When businesses produce, create, or use intellectual property, it is important to recognize the
rights of the original creator of that property. This can include trademarks, patents, copyrights,
and trade secrets. If a business fails to protect their properties or infringes on the rights of
another, legal action may be taken.

3. Defamation

Businesses must be aware of how the public views them and how they present themselves.
Defamation can occur when one party spreads false or damaging information about the other
party. This can be done through written or spoken communication and must be addressed
legally.

4. Employment Law

Businesses must adhere to laws that protect the rights of their employees. This includes laws
on hiring, wages and hours, health and safety, discrimination, and more. Employers must be
aware of their legal obligations to ensure they are not in violation of any laws.

5. International Trade

International trade involves the import and export of goods and services. Common legal issues
include compliance with export control laws, customs compliance, and the resolution of
international disputes.

5. Why and when do you need a business law attorney?

A business law attorney can be helpful in a variety of situations. Businesses may need a lawyer
to help with formation, mergers and acquisitions, contract negotiations, intellectual property
protection, tax and financial planning, and other legal matters. A lawyer can also help a
business defend against potential lawsuits and other legal actions. Business owners should

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consult with a business law attorney whenever they face a legal challenge or have a complex
legal issue.

Task 02
1. What is Employment Law
Employment Law is a body of laws, administrative rulings, and precedents that regulate the
employer-employee relationship. It includes statutes, regulations, and judicial decisions that
govern the rights and responsibilities of employers and employees in areas such as wages, hours
of work, working conditions, and benefits. It also covers issues such as discrimination,
harassment, and wrongful termination.

Types of employment include full-time, part-time, contract, temporary, and freelance. Full-
time employment is a type of employment in which an employee works a predetermined, set
number of hours per week and receives a regular salary. Part-time employment is a type of
employment in which an employee works fewer hours than a full-time employee. Contract
employment is a type of employment in which an employee is hired for a specific period of
time to complete a specific task or project. Temporary employment is a type of employment in
which an employee is hired for a limited period of time to complete a specific task or project.
Freelance employment is a type of employment in which an independent contractor is hired to
complete a specific task or project.

2. Briefly explain the key areas covered by Employment Law.

Employment Law covers a wide range of legal topics related to the workplace, including:

1. Hiring and termination

Employment law covers the process of hiring, disciplining and firing employees, including any
relevant laws or regulations that must be followed. It also covers any discrimination or
wrongful termination claims that may arise.

2. Wages and benefits

Employment law addresses the minimum wage, overtime, vacation time, holiday pay, and other
compensation issues. It also deals with employee benefits such as health insurance and
retirement plans.

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3. Working conditions

Employment law outlines the standards for workplace safety, health and hygiene, hours of
work, and other conditions that must be met in order for employees to be protected from harm
or exploitation.

4. Discrimination

Employment law prohibits employers from discriminating against employees based on age,
race, gender, disability, religion, or other protected classes.

5. Labor relations

Employment law covers labor relations, including the rights of both employers and employees
to participate in labor unions and collective bargaining.

Employment contracts

Employment law covers the creation, interpretation, and enforcement of employment contracts.

3. Differentiate between Employment Law & Labor Law with the

organizational context.
Employment Law
Employment law is the body of law that governs the rights and obligations of employers and
employees in the workplace. It includes the laws governing hiring, wages, hours, conditions of
employment, discrimination, termination, and other matters. It also includes collective
bargaining agreements, labor laws, and employee benefits.

Labor Law
Labor law is the body of law that governs the rights and obligations of trade unions and
employers in relation to their members and employees. It includes collective bargaining
agreements, labor laws, and labor-management relations. It also covers issues such as
workplace safety, unionization, and the negotiation of collective bargaining agreements. Labor
law is concerned with the regulation of the employer-employee relationship, including issues
such as wages, hours, and working conditions.

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4. Discuss Key Objectives of Labor Law
Labor law aims to correct the imbalance of power between the worker and the employer; to
prevent the employer from dismissing the worker without good cause; to set up and preserve
the processes by which workers are recognized as 'equal' partners in negotiations about their
working conditions etc.

Labor law aims to prevent a race to the bottom by placing restrictions on the contracting
partners’ freedom to contract on whatever terms they wish, and setting minimum standards
over safety and pay.

Labor law also regulates the labor market: a country may choose to put legislation in place
setting maximum or minimum limits on wages or working hours, either nationally or in
particular sectors or industries.

1. Ensuring Fair Wages

Labor law ensures that employees receive fair wages for their work by establishing minimum
wage requirements, overtime pay, and other benefits such as paid time off.

2. Ensuring Safe Working Conditions

Labor law also ensures that employers provide safe working conditions by establishing safety
standards and health regulations.

3. Protecting Employees from Discrimination

Labor law helps protect employees from workplace discrimination, such as discrimination
based on race, gender, religion, or national origin.

4. Representing the Rights of Unions

Labor law also helps protect the rights of unions and their members by establishing collective
bargaining rights and other procedures for union negotiations.

5. Preventing Unfair Labor Practices

Labor law also helps prevent employers from engaging in unfair labor practices, such as child
labor, forced labor, and other forms of exploitation.

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5. Describe the role and contribution of ILO to the world Social
Economical context.
The International Labor Organization (ILO) is a specialized agency of the United Nations that
works to promote and protect the rights of workers and to ensure decent working conditions
for all. It is the oldest existing international agency, having been established in 1919.

The ILO helps governments, employers, and workers' organizations to develop laws and
regulations that promote human rights, social justice, and decent work opportunities. It focuses
on areas such as labor standards, employment, social protection, and social dialogue. Through
its research, capacity building, and advocacy efforts, the ILO works to help countries create
more and better jobs, reduce poverty and inequality, and promote social dialogue.

The ILO is a key player in the global social and economic context, contributing to the
promotion of safe and decent working conditions, the elimination of forced labor and child
labor, the elimination of discrimination in the workplace, the promotion of gender equality,
and the protection of migrant workers. The ILO also provides assistance for countries in
creating social protection systems, and it has established international standards that are used
to measure the progress of countries in meeting the needs of their citizens. Finally, the ILO
provides support for the development of a sustainable global labor market.

The ILO has three main objectives:

1. To promote and realize standards and fundamental principles and rights at work. This
includes the right to work, the right to freedom of association, the right to collective
bargaining, the right to a safe and healthy working environment, and the right to equal
pay for equal work.
2. To create greater opportunities for women and men to secure decent employment and
income. This includes providing access to skills training, creating job opportunities,
and promoting the development of small and medium-sized businesses.
3. To enhance social protection for all. This includes providing access to social security
and health insurance, as well as promoting social dialogue.

The ILO also works to promote social dialogue and social partnerships between employers and
workers.

Task 03

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1. What do understand by the term Employment
Employment is an agreement between an employer and an employee that the employee will
provide certain services. In return, the employee is paid a salary or hourly wage. Although
employees can negotiate certain items in an employment agreement, the terms and conditions
are primarily determined by the employer. Both parties may also terminate the agreement.

An employment agreement for an individual employee can be a verbal exchange, written email,
or job offer letter. The offer of employment can be implied in an interview or written in a
formal, official employment contract.

How Employment Works

Employment agreements vary, as they may involve different time commitments and
compensation plans.

For example, employment can be:

1) An hourly part-time job that is paid a specific dollar amount for each hour worked
2) Full-time employment in which individuals receive a salary and benefits from an employer
for performing the tasks required by a particular position
3) A set schedule that requires employees to work a 40-hour week with an hour for lunch and
two 15-minute breaks, one in the morning and one in the afternoon⁠, as required by state
law

As long as the employer upholds their agreement to pay the employee⁠—and pay on time⁠—
and the employee wishes to continue working for the employer, the employment typically
continues.

Much of the employment relationship between an employer and employee is governed by the
employer's needs, profitability, and management philosophy. The employment relationship is
also driven by the availability of employees and their expectations.

Requirements for Employment

Employers withhold federal and state taxes and pay Medicare, Social Security, and
unemployment taxes on the salary and wages they pay employees. This is one of the factors
that sets employment apart from working with an independent contractor.

Employment also allows employees to control more aspects of an employee's job, including
work location, resources, responsibilities, hours, and wages. Employee input, autonomy, and
self-directedness varies significantly depending on the employer. Some allow significant

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autonomy in how employees work while others dictate how an employee spends every minute;
both scenarios are employment.

If an employee has a disagreement with an employer in the private sector, the employee has
several options. They can bring the issue to their manager, go to human resources, talk to upper
management, or even give notice.

2. Briefly explain the different types of Employment within the business

organizational context.
1. Permanent Employment

This type of employment involves a long-term relationship between an employer and an

employee. The employee is hired for an indefinite period of time and is usually entitled to
benefits such as vacation and sick leave, medical and dental insurance, and a retirement plan.

2. Temporary Employment

This type of employment is typically a short-term arrangement between an employer and an

employee. Temporary employees are hired for a specific period and are not eligible for
benefits.

3. Part-Time Employment

Part-time employment involves a shorter workweek than a full-time job and usually includes
fewer hours per week. Part-time employees are usually not eligible for benefits.

4. Contract Employment

Contract employment is a form of employment that involves an agreement between an

employer and an employee for a specific period of time. The employee is usually not eligible
for benefits or other job security.

5. Seasonal Employment

Seasonal employment is a type of employment that is based on the availability of seasonal

jobs. Seasonal employees are typically hired for a specific period of time and are not eligible
for benefits.

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3. Discuss Basic Employment Rights for all types of employees in an
organization.
1. Right to fair and equal treatment

All employees should receive fair, respectful and non-discriminatory treatment in the
workplace, regardless of race, gender, age, disability, sexual orientation, religion or any other
protected characteristic.

2. Right to a safe working environment

All employees should have the right to a safe and healthy work environment. This includes a
safe physical work environment as well as protection from harassment, discrimination and
other forms of abuse.

3. Right to fair wages

All employees should be paid a fair and livable wage for their work. This includes the right to
receive overtime pay, meal and rest breaks, bonuses, and other wages and benefits.

4. Right to privacy

All employees should have a right to privacy in the workplace, including the right to keep their
personal information, such as medical records, confidential.

5. Right to due process

All employees should have the right to due process when facing disciplinary action, including
the right to know the reason for the disciplinary action and the right to appeal.

6. Right to freedom of speech

All employees should have the right to express their opinions and grievances in the workplace
and to do so without fear of reprisals.

4. Briefly Explain Employment Contract

An employment contract is a legally binding agreement between an employer and an employee
which outlines the terms and conditions of the employment relationship. It typically includes
details such as job responsibilities, hours of work, salary, benefits, and termination procedures.

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An employment contract can be either written or verbal, but it is highly recommended that
employers use a written contract to avoid any potential disputes. (Doyle, A. (2022)

More specifically, an employment contract can include:

1. Salary or wages: Contracts will itemize the salary, wage, or commission that has been
agreed upon.
2. Schedule: In some cases, an employment contract will include the days and hours an
employee is expected to work.
3. General responsibilities: Contracts can list the various duties and tasks a worker will be
expected to fulfill while employed.
4. Confidentiality: Although you may have to sign a separate non-disclosure agreement,
some contracts include a statement about confidentiality.
5. Communications: If an employee's role involves handling social media, websites, or
email, a contract might state that the company retains ownership and control of all
communications.

Pros and Cons of an Employment Contract

Pros

A. Clearly defines duties and benefits

B. Protects each party
C. Provides stability

Cons

A. Limits flexibility
B. Legally binding
C. Can only be changed through renegotiation

Pros Explained
1. Clearly defines duties and benefits: There's no wondering what responsibilities are
included in the job, or what the pay or benefits are, because they are spelled out in the
contract.
2. Protects each party: Both employer and employee are covered under the agreement.
3. Provides stability: With a contract in place, both the worker and the company know what
to expect for the foreseeable future.

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Cons Explained
1. Limits flexibility: Once the employee is hired under the contract, they can't just leave if
they feel like it, and the employer can't just let them go if they decide they don't need them
anymore.
2. Legally binding: There are consequences for breaking the terms of the agreement.
3. Can only be changed through renegotiation: Both sides must agree to any changes to the
original agreement.

5. Discuss Associated Employment Rights for Contracts.

Associated employment rights are a set of statutory rights that an employee is legally entitled
to when they enter into a contract of employment. These rights are created under the
Employment Rights Act 1996 and include:

 The right to receive a minimum wage

 The right to receive paid annual leave
 The right to reasonable working hours
 The right to receive sick pay
 The right to not be unfairly dismissed
 The right to receive a written statement of employment particulars
 The right to be given notice before being dismissed -The right to a redundancy payment
 The right to protection from discrimination
 The right to receive payment for time off for public duties
 The right to protection from detriment for whistleblowing
 The right to receive time off for family reasons
 The right to receive a maximum working week
 The right to receive a rest break
 The right to be consulted on changes to terms and conditions

Task 04
1. What do understand by the term Contract
A contract is an agreement between two or more parties that creates a legal duty or
responsibility for the parties involved. A contract is legally binding and can be enforced by a

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court of law. It usually involves exchange of goods, services, money, or promises. The terms
of the contract are usually set out in writing, although verbal contracts are also legally binding.

Process of Contract

Figure 1 Process of Contract

First and foremost, an offer is made by one party to another, which when accepted by the party
to whom it is made, leads to the agreement. If that agreement is enforceable in the court of law,
it is known as a contract.

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Essential Elements of a Contract

Figure 2 Essential Elements of a Contract

1. Agreement: The primary element that creates a contract between parties is an agreement,
which is a result of offer and acceptance that forms consideration for the parties concerned.
2. Free Consent: Consent of the parties is another important aspect of a contract, which
means the parties entering into the contract, must agree upon the same thing in the same
sense. The consent of the parties is said to be free when it is not influenced by coercion,
undue influence, fraud, misrepresentation and mistake.
3. Competency: Competency refers to the capacity of the parties to enter into the contract,
i.e. he/she has reached the age of maturity, he/she must be of sound mind, and he/she is not
disqualified from contracting, as per the law like the alien enemy, foreign sovereigns, etc.
4. Consideration: It implies the price agreed to be paid for the promisor’s obligation by the
promise. It must be adequate and lawful.
5. Lawful object: The object for which the contract is created must be lawful, or else it is
declared as void.
6. Not expressly declared as void: The law should not expressly declare the contract as void,
such as contract in restraint of marriage, trade or legal proceedings.

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Types of Contract

On the basis of validity

1. Valid Contract: An agreement which is enforceable by law, is a valid contract.
2. Void Contract: The contract which is no longer enforceable in the court of law is a void
one.
3. Voidable Contract: A contract in which one of the parties to the contract has a choice to
avoid performing his/her part, then it is termed as a voidable contract. When the consent of
the party is not free, the contract becomes voidable, at the option of the aggrieved party.
4. Illegal Contract: A contract which is forbidden by law is termed as an illegal contract.
5. Unenforceable Contract: The contract whose substance is good, but due to some issues,
it is not enforceable, is called an unenforceable contract.

On the basis of formation

1. Express Contract: When the terms of the contract are expressed orally or in writing, it is
known as an express contract.

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2. Implied Contract: The contract which is constituted by implication of law or action, is an
implied one.
3. Quasi-Contract: These are not a real contract, but are identical to a contract, which is
formed out of some circumstances.

On the basis of Performance

1. Executed Contract: When the contract is performed, it is known as an executed contract.
2. Executory Contract: When the obligation in a contract, is to be performed in future, it is
described as an executory contract.
 Unilateral Contract
 Bilateral Contract

To sum up, agreements are termed as a contract, if it comprises all the essential elements that
constitute a contract.

2. Briefly explain the major elements of a Contract

Contracts are legally binding agreements between two or more parties and they are at the center
of every professional relationship. Whether it’s a renewal, lease agreement, or a new sales deal,
a contract will set out the conditions and agreed on terms for the parties involved.

Whether a contract is 200 pages or 10 pages, to be a legally binding agreement they must
contain these six basic elements:

1) Offer
2) Acceptance
3) Awareness
4) Consideration
5) Capacity
6) Legality

When all of the six elements are met, the agreement becomes legally binding. If even one
element is missing, the contract may not be enforceable.

1. Offer: One party must make an offer to another party that is accepted, forming a contract.
2. Acceptance: The other party must accept the offer in order for the contract to be binding.

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3. Awareness: For a contract to be legally binding, both parties must be aware that they are
entering into a new agreement. Called ‘a meeting of the minds’, the parties must recognise
that the contract exists and that they are agreeing to be bound by the contractual obligations.
4. Consideration: Each party must provide something of value to the other in order to enter
into a contract.
5. Capacity: Both parties must have the legal capacity to enter into a contract.
6. Legality: The subject matter of the contract must be legal, and not violate any laws or
regulations.

3. Discuss basis for Commercial Contract within organizational context.

A commercial contract is an agreement between two or more parties, known as 'parties', for the
exchange of goods, services, or both. It is a legally binding document that sets out the terms
and conditions of the exchange, including the parties' respective rights and responsibilities.

Within an organizational context, commercial contracts are often used to regulate business
relationships between parties, and to define the terms and conditions of their business
relationship. They may be used when entering into an agreement with suppliers, customers,
partners, or other stakeholders.

Commercial contracts are important for organizations, as they help to establish clear
expectations for the parties involved and protect the organization from potential legal issues.
They also provide a platform for the parties to negotiate and agree on the terms of the
agreement. Contracts should be tailored to the specific needs of the organization and include
clauses that address specific matters, such as confidentiality, indemnification, and dispute
resolution.

Additionally, commercial contracts should be drafted carefully to ensure they are legally
enforceable and that they provide the necessary protection for the organization. This can
include ensuring that the contract is in writing and clearly outlines the scope and
responsibilities of each party, and that all parties are aware of and agree to the terms and
conditions of the agreement.

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4. Briefly Explain Termination of a Business Contract
Termination of a business contract is the ending of an agreement between two or more parties.
This can happen for a variety of reasons, including breach of contract, mutual agreement, or
the expiration of a specified period. Termination of a business contract can occur through a
variety of methods including cancellation, rescission, or expiration. When a contract is
terminated, it is no longer binding and any obligations that were previously agreed upon are no
longer legally enforceable.

5. Discuss what and possible situations for breach of an Agreement or

Contracts.
A breach of an agreement or contract occurs when one of the parties does not fulfill the
obligations outlined in the agreement. This can include failure to perform services, deliver
goods, make payments, follow timelines, or any other term that is outlined in the contract.
Some common scenarios for breach of contract include:

1. Failure to perform: One party fails to perform the services they agreed to in the contract.

2. Non-payment: One party fails to make payments as required by the contract.

3. Misrepresentation: One party makes false statements or omits information that would have
been important to the other party in making the agreement.

4. Unforeseen circumstances: An unexpected event occurs that affects the ability of one of
the parties to fulfill their obligations under the contract.

5. Termination: One party terminates the contract without giving proper notice or cause.

6. Modification: One party changes the terms of the contract without the consent of the other
party.

7. Breach of warranty: One party fails to deliver goods or services that meet the standards
expressed in the contract.

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References
Labour law: Why we need it? (no date) WageIndicator Foundation. Available at:
https://wageindicator-data-academy.org/countries/data-academy-garment-indonesia-
english/labour-regulations-english/labour-law-why-we-need-
it#:~:text=Labour%20law%20aims%20to%20correct,about%20their%20working%20conditi
ons%20etc

(Accessed: December 28, 2022).

Heathfield, S.M. (2020) What is employment?, The Balance. The Balance. Available at:
https://www.thebalancemoney.com/what-is-employment-
1918114#:~:text=Employment%20is%20an%20agreement%20between,primarily%20determ
ined%20by%20the%20employer

(Accessed: January 9, 2023).

Doyle, A. (2022) What is an employment contract?, The Balance. The Balance. Available at:
https://www.thebalancemoney.com/what-is-an-employment-contract-2061985

(Accessed: January 4, 2023).

S, S. (2020) What is contract? definition, elements and types, Business Jargons. Available at:
https://businessjargons.com/contract.html

(Accessed: December 30, 2022).

Elements of a contract (no date) Summize. Available at:

https://www.summize.com/resources/elements-of-a-contract

(Accessed: January 6, 2023).

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