MASTER OF SCIENCE IN ACCOUNTING

LEGAL ENVIRONMENT OF BUSINESS COURSE OUTLINE

 Mid-semester assignment (40 marks)

 ANSWER BOTH QUESTIONS

 1. In relation to Employment Law, using cases to illustrate where necessary, complete the following:

i.    Explain Unlawful Dismissal; (4 marks) ii.      Explain Unjustified/Unfair Dismissal; (4 marks) iii. Name the court or tribunal that deals with each; (3 marks) iv.      What are the processes of each court or tribunal; (5 marks) v.   List the awards each court or tribunal can make. (4 marks)

2. Using the case facts laid out below, and with the use of the relevant statute(s) and two (2) decided cases:

(a) Analyse whether John is an employee or independent contractor [10 marks] (b) Discuss the validity of John’s termination where it is found that: i. He is an employee [5 marks] ii. He is an independent contractor [5 marks]

John, a graphic designer, has worked for a company, TechCreatives, for the past two years. Initially, John was hired on a contract basis to help design websites for the company’s clients. His arrangement with TechCreatives was framed as a “freelance” contract, and he submitted invoices monthly for payment. The company provided John with a steady stream of work, and he would receive detailed instructions on the clients’ needs, the deadlines, and the specifications for each project.

Over time, John’s responsibilities expanded, and he began working on several long-term projects for TechCreatives. The company now provides him with office space, a computer, and software licenses needed for his work. Though John has continued to be paid on a perproject basis, now reports to the office every day and is required to attend team meetings.

TechCreatives also controls when his deliverables are due and has started to withhold tax for his payments. Furthermore, John has started to receive benefits, including health insurance, and is encouraged to participate in company events. John’s family has even begun to refer to him as a “full-time” employee of the company, though his formal contract has not changed.

At the end of the second year, John is told that his contract with TechCreatives will not be renewed due to budget cuts. TechCreatives tells him that it is terminating his contract for “operational reasons” but assures him that it has “no issues” with his work performance. However, John believes that he was unfairly terminated because he was informed with little notice and feels that his work history at the company should have afforded him greater protections.

John decides to sue TechCreatives for wrongful termination, arguing that he was an employee entitled to the protections of the requisite labour laws. He also contends that the company’s treatment of him – providing him with equipment, controlling his hours, and offering benefits – makes him an employee rather than an independent contractor.

In response, TechCreatives argues that John was always an independent contractor, as he invoiced for services rendered, had the ability to work for other companies, and his status was made clear at the outset of the agreement. The company claims that it had the right to end the contract at any time under the original terms, as it did not involve a permanent employment relationship.