Unit 1 - People at Work

Unit 1 People at Work
www.businessleavingcert.com
Copyright 2012
People in Business
A Commercial Business aims to make a profit,
e.g. banks, restaurants, shops
A Non-commercial Business aims to provide a
service, e.g. Filte Ireland, charities. Trcaire is
an international charity who provides a
service to people in developing countries.
PEOPLE in BUSINESS Who are they?

Entrepreneur use initiative to seek an opportunity and
takes the risks involved in starting and managing a new B
with the aim of making a profit. E.g. Richard Branson
Investors person or organisation who supplies
finance/capital to a business e.g. loan capital, venture
capitalists, Government Grants, private individuals. E.g.
Dragons Den.
Consumers purchase goods and services which are of
good quality at the lowest possible price. Consumers
seek an after-sales service and exercise their right to
choose when purchasing.

Producers provides a good or service for sale.
Suppliers sells a goods or materials to other businesses.
Service Provider e.g. legal (solicitors), financial (banks), utilities
(ESB, Gas)
Employees hired by an employer to work in return for pay.
Rights
Receive a fair wage
Join a Trade Union
Healthy and Safe Working
conditions
Written contract of
employment
Responsibilities
Do an Honest days work
Adhere to terms and
conditions in contract.
Respectful, Honest and
Courteous Behaviour.
Accept and Follow
Management Instructions

Producers provides a good or service for sale.
Suppliers sells a goods or materials to other businesses.
Service Provider e.g. legal (solicitors), financial (banks), utilities
(ESB, Gas)
Employees hired by an employer to work in return for pay.
Rights
Receive a fair wage
Join a Trade Union
Healthy and Safe Working
conditions
Written contract of
employment
Responsibilities
Do an Honest days work
Adhere to terms and
conditions in contract.
Respectful, Honest and
Courteous Behaviour.
Accept and Follow
Management Instructions

Employers hires employees to carry out work.
Obligations to Employees
Fair treatment and Good Working Conditions
Fair Pay
Health and Safety in workplace
Provision of Employment Contracts
Interest Groups
Purpose: Promote and Protect Members Interests
Role:
To influence the Government, the EU, Local Authorities or
Businesses whose decisions affect their members. Rely on
the effect of Strength in Numbers through lobbying
protesting and campaigning.
Boycott refusal to partake in some activity e.g.
Greenpeace the environmental group may boycott Bs
who are major polluters.
Lobbying highly organised campaign of discussion and
debate in the media to try and put pressure on decision
makers to act in a certain way. E.g. Irish Vintners strongly
lobbied the Government on Smoking Ban.
Interest Groups
Implications for Business
Cause bad publicity for a B who must then invest in
clearing their name
Protests and Picketing (standing outside premises with
placards and chants) require Business to invest in more
Security.
Damage the IMAGE of the Business leading to decrease in
demand and sales
May succeed and influence decision making policy of the
Government which may benefit certain Businesses. e.g.
Pharmacists in 1997 lobbied the government to introduce
legislation which was anti-competitive.
Business may need to lie down to Interest Group in order
to restore goodwill.
Interest Groups
Examples:
IBEC (Irish Business and Employers Confederation)
advise and represent employers on industrial relations
and legislative matters. E.g. Wage Agreements.
ICTU (Irish Congress of Trade Unions) represent its
members in industrial disputes and seeks better pay and
conditions for its members.
CAI (Consumer Association Ireland) informs members
on consumer issues through monthly magazine
Consumer Choice.
Trade Associations an interest group representing

a particular trade e.g. SIMI (Society of Irish Motor
Industry), IFA (Irish Farmers Association) ,
Relationships in Business
Co-operative Relationship exists where
stakeholders work together to achieve a common
objective for their mutual benefit requiring joint
effort and cooperation.
Competitive Relationship 2 stakeholders seek
to achieve a similar/ different objective but
pursue different methods in trying to achieve it at
the expense of the other stakeholder.
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SOLVING CONFLICT NON-LEGISLATIVELY

Negotiation: meeting of two sides trying to solve a problem
through talking it out and compromising.
Conciliation: Independent 3rd Party comes in, listens to both
sides individually, then brings them together to try and find
a solution.
Arbitration: Independent 3rd Party Listens to two sides
involved separately and makes a recommendation
/decision. If accepted beforehand decision is binding (may
be appealed to Labour Court)
Collective Bargaining TUs, Employers, & Government
come together to try and negotiate wage deals and
conditions of work
Ombudsman Independent government body that
investigates conflicts in certain areas e.g. Garda
Ombudsman
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Contract Law
Definition of a Contract:
Legally Binding Agreement between 2 parties
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Elements of a Valid Contract (NB)

1. Agreement (Offer & Acceptance)
Offer: Can be accepted or rejected, must be clear,
complete can be communicated by conduct,
orally or in writing.
Invitation to Treat (SQ): invitation to entice a
customer to buy goods or services can be
accepted or rejected by customer (dress in shop
window)
Acceptance: offer is accepted by all parties, must
have no conditions and related to the original
offer.
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2. Consideration: Something of REAL VALUE
must pass between the parties e.g. (Sweets
for Money)
3. Intention to Contract: both must intend to
enter a legal contract not just one party,
4. Capacity: must have legal right to enter a
contract i.e. Over 18, not under the
influence of alcohol/drugs, not a
disqualified director, not insane.
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5. Consent- must be genuine and voluntary
free will (cannot be forced/under duress)
6. Legality of Purpose (contract must be for
legal reason) E.g. Cannot enforce a drug
dealing contract by law
7. Legality of Form (some contracts should be
in writing for them to be valid, e.g. sale of
house)
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Termination of a Contract
Performance: both parties have carried out duties,
contract ends e.g. Contract with builder to build
extension, when finished and the builder is paid
contract is over
Agreement: both parties mutually agree to bring
contract to an end. e.g. 2 weeks notice before
leaving an employment contract
Frustration: A person is unable to carry out contract
for some unforeseen event e.g. Death, change in law
Breach: one party breaks a condition in a contract,
the other party has right to take action in courts.
- Conditions essential clause if broken ends contract,
- Warranty less important does not break contract)
SQ (Short Question)
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Remedies for BREACH OF CONTRACT

Sue for Damages; financial compensation for loss
suffered
Specific Performance; forced by court to carry
out duties set out in contract. (Sale of Land)
Rescind the Contract; Contract cancelled and
injured party may sue for compensation/damages
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Legislation
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Consumer Legislation
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Sale of Goods and Supply of Services Act

1980
Relates to every consumer and protects them from
unlawful practices when dealing with goods and
services.
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Sale of Goods and Supply of Services

Act 1980
Provisions for Goods
Merchantable Quality reasonable quality
considering the price paid, made of quality materials
with no manufacturers faults. E.g. A New handbag
should not rip after 2 days.
Fit for Purpose the goods should do as proposed
e.g. Waterproof Shoes should keep water out.
If Sold by Description, goods must match description
e.g. EBay
If Sold by Sample, goods must match sample e.g.
Paint
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Act 1980
Ownership and Quiet Possession seller must be
legally entitled to sell the goods and the goods for
sale must have been obtained legally.
Contract for Sale of Vehicles vehicles are free of
defects, not a liability to the public and fully road
worthy unless otherwise stated at the time of
purchase.
22

Act 1980
Guarantee RETAILER is responsible for the
manufacturers guarantee and a dissatisfied customer can
claim against either or both. It is an extra form of
protection for the owner of a good for a set period of time.
Unsolicited Goods Inertia Selling where goods are sent
to people who havent ordered them and then payment is
requested. If goods have not been collected for 6 months a
person may keep the goods or after 30 days where the
person has given written notice to the seller stating the
goods are unsolicited and giving a name, address and
collection point for them.
23

1980
Conditions and Warrantees
Conditions are elements of a valid legal contract and are
fundamental (major) to it e.g. if goods are sold by
description and the goods do not match that description,
the buyer may refuse the goods and the contract may be
terminated.
Warranty (written promise that a product is devoid of
defects and will meet a specified level of performance
over specified period of time) this is a statement of fact
contained in a contract. If the warrantee is broken the
buyer cant repudiate (cancel) the contract but can claim
for damages in court. Non-fundamental (minor)
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1980
Provisions for Services
Must be provided by person with the necessary
skill and qualification.
Must be provided with proper care and
attention.
Must be provided with Materials of
Merchantable Quality.
25

1980
Redress for Customers (Come back)
Entitles them to a refund, replacement or repair
should conditions of the Act be broken as the
retailer is responsible for ensuring consumers
statutory rights are met and complaints are
sorted. (3 Rs)
Where a complaint is valid a customer doesnt
have to accept a credit note.
Gives consumers statutory rights which cant be
limited by guarantees.
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1980
Redress for Customers (Come back)
Makes the Retailer responsible for faulty goods
(Motor Vehicles implied to be free from
potentially dangerous defects).
Supplies are aware of consumer rights so should
meet requirements.
It ensures best practice among manufacturers
and retails as they are monitored through laws.
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Consumer Protection Act 2007 (2012

Leaving Cert on)
Main Functions
Unfair and misleading commercial practices are
prohibited (false/misleading description,
false/misleading advertisement, false price, false
price reduction)
Update and consolidate consumer legislation and
repeal some of the old consumer laws, i.e. remove
those which are no longer effective
Transpose the EU Directives, e.g. Unfair Commercial
Practices or WEEE into National Law
Established the National Consumer Agency (NCA)
which replaces the Office of Director of Consumer
Affairs
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National Consumer Agency (NCA)

Main Functions
Promote consumer rights through targeted research,
consumer information (consumer website
http://www.consumerconnect.ie), educational and
awareness programmes
Enforce consumer legislation, e.g. serve prohibition notices,
on the spot fines for offenses relating to price display, and
the ability to name and Shame with the publication of
non-compliant businesses.
Work with Business to promote consumer interests, provide
information on consumer law and encourage best practice
initiatives.
Present an annual report to the Minister for Enterprise,
Trade and Employment.
Monitor legislation and EU consumer directives and inform
the public of their rights.
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SMALL CLAIMS COURT

The aim of the Small Claims Court, provided in local district
courts, is to provide an inexpensive, fast and easy way for
consumers to settle disputes without a solicitor.
15 per claim submission to Small Claims Registrar
Deals with claims under 2000 while claims cant be
between businesses
Examples of claims: faulty goods, poor workmanship,
minor damage to property, or claims regarding rented
properties.
Person making the claim is called the applicant; person
against whom the claim is being made is called the
respondent. The registrar will try and settle the dispute, if
not it will go to the District Court.
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Employee Legislation
31
INDUSTRIAL RELATIONS ACT 1990

Provisions:
1. Defined a Legitimate Trade Dispute
is a dispute between employers and employees arising from issues
such as:
- Pay and conditions of employment, e.g. rates of pay, O/T,
holidays, breaks.
- Working conditions, e.g. poor ventilation, sanitary conditions
- Dismissal/Suspension, e.g. unfair treatment due to gender, age.
- Employment policy of the employer, e.g. method of recruitment
- Union recognitions e.g. failure of employer to recognise a union
Minimum of one weeks notice must be given to employers by
union if they intend to strike?
Secret Ballot: vote by secret ballot must be conducted before
strike can be allowed, i.e. each persons vote is kept secret.
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INDUSTRIAL RELATIONS ACT 1990

Provisions:
2. Employees and trade union employees cant be sued, the
Business cant get a court injunction to stop them or the Garda
cant physically remove them provided that the dispute is
legitimate.
3. Picketing is allowed as long as union has followed correct
procedures prior to strike action. (secret ballot, one weeks
notice)
Primary Picketing refers to process of walking up and down
outside ones workplace in peaceful demonstration with placards
indicating a strike is in process. Conducted to raise awareness of
issues.
Secondary Picketing is demonstrating outside another
businesses premises only allowed if this business is trying to
frustrate the strike.
4. Labour Relations Commission Established under the Act.
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Labour Relations Commission (LRC) Role /

Functions
Promote good industrial relations through advice, research and

development on problem issues and establish methods for their
resolution.
Assist in settling Trade Disputes between employers and employees
before they go to the Labour Court provide a conciliation service
through Industrial Relations Officers (IRO) (listen to both sides and try
and come to agreement together)
Provide a Rights Commissioner service to investigate disputes where
only one worker or small number of workers are involved,
recommendations not binding unless agreed in advance
Appoint Equality Officer for disputes regarding discrimination under
the Employment Equality Act 1998.
Assist Joint Labour Committees (JLC) help workers who arent
members of a union (fix pay and conditions)
Assist Joint Industrial Councils (JIC) employers and unions discuss
IR issues and try and prevent issues arising
34
Types of Industrial Action

Strikes: workers stop working in an effort to force
employer to meet their demands.
Official Strike: properly organised, union authorisation,
union organises a secret ballot (secret vote by the
members to decide whether to go on strike or not) and
gives one weeks notice to employer.
Unofficial Strike: Workers decide to go on strike
without approval of the Union. The LRC refuses to
intervene in unofficial disputes.
Work to Rule/ Go Slow: Workers do minimum
amount of work, just as laid out in their contract,
output is reduced but wages have to be paid.
35
Labour Court Role / Functions

Investigate trade disputes where Labour Relations
Commission has not succeeded and parties involved have
requested its intervention.
Investigates trade disputes and issues recommendations
for their settlement through arbitration where decisions of
Rights Commissioners and Director of Equality Investigations
are appealed.
Establish Joint Labour Committees assist them in
preparing employment regulation orders , recommend
wage levels and conditions of employment where workers
are in a weak bargaining position e.g. workers in hotels have
no unions.
Register employment agreements and sure their
implementation where LC recommendations have been
accepted.
36
Rights Commissioner (RC)

Works on behalf of the LRC and deals with
problems involving individual workers in relation to
unfair dismissal, terms of employment, pay.
Brings together employee and employer in a
private hearing where both sides air issues and
have an opportunity to reject claims against them.
(Conciliation)
Aim is to find a mutually acceptable solution to the
dispute the RC may issue a recommendation
which either party may reject and appeal in the
Labour Court or Employment Appeals Tribunal.
37
Employment Appeals Tribunal (EAT)

Independent body responsible for implementing
rights under employment law in a quick, fair and
informal way.
Consists of an independent chairperson with legal
qualification, a trade union representative and a
representative of the employer.
Hears disputes, e.g. unfair dismissals especially
appeals against recommendations of the Rights
Commissioner.
A Decision is called a determination and is legally
binding. In some cases a determination may be
appealed to the High Court.
38
Employment Equality Act 1998

Prohibits discrimination in the workplace.
Discrimination is defined as the treatment of a
person in a less favourable way than another.
It is illegal to discriminate when recruiting, hiring,
training or promoting employees.
9 Grounds for Discrimination
Age
Membership of the
Travelling Community
Disability
Family Status
Gender
Marital Status
Race
Religion
Sexual Orientation
39
Equality Authority
independent body set up under the Act
Inform the public on the operation of the
Employment Equality Act 1998.
Promote equality of opportunity in employment
in relation to the nine grounds outlined in the Act.
Aim to eliminate discrimination in relation to the
nine grounds outlined in the Act.
Monitor and review the operations of the
Employment Equality Act 1998.
Assist those taking complaints under the
provisions of the Act.
40
Office of Director of Equality Investigation

(ODEI) / Equality Tribunal
set up under the Act to investigate cases of discrimination
Functions
1. Investigate complaints of discrimination submitted within
6 months of the incident occurring under the Employment
Equality Act 1998.
- In equal pay cases, (male paid more than a woman doing
the same job with same experience) they may order equal
pay and arrears backdated to 3 years. In other cases they
may order equal treatment and compensation of up to a
maximum of 2 years pay or 10,000 where the person was
not an employee.
- They may order any person to behave in a particular way/
take a specified course of action to avoid future
discrimination.
41
Office of Director of Equality Investigation

(ODEI) / Equality Tribunal
Set up under the Act to investigate cases of discrimination
Functions
2. Refer a serious case to their Equality Officer who conducts
a formal investigation into the dispute and whose decision
is binding.
3. Refer a less serious case to their Equality Mediator who
informally helps parties in dispute to reach their own
agreement without having to impose a decision.
4. Submit an annual report to Minister for Justice, Equality
and Law Reform on the activities of the Office.
5. Decision are binding and are enforceable in the Circuit
Court but may be appealed to the Labour Court within 42
days.
6. Service is free of charge and complainants arent required
42
to be represented bywww.businessleavingcert.com
a solicitor.
UNFAIR DISMISSALS ACT 1977 - 2005

Purpose is to protect employees from unfair
dismissal by an employer
1. Applies to Employees between 16-65 (retirement
age) who have had at least one years continuous
service with the same employer.
2. Burden of Proof is on the employer which means
that every dismissal of an employee will be
presumed to be fair unless the employer can
show substantial grounds to justify the dismissal.
43

5 grounds for FAIR DISMISSAL include: V NB
Capability employee cant physically do the work
expected of them due to persistent absenteeism or
lateness,
Competence employee consistently fails to meet the
standard of work expected of them,
Qualification employee lied about their
qualifications/ doesnt possess the correct skills for
the job,
Misconduct employee engages in illegal or
inappropriate activity, e.g. theft, fighting, being drunk
at work,
Redundancy employee is let go as the Business cant
afford to keep them on as it is going through a tough
time.
44

7 grounds for UNFAIR DISMISSAL include: V NB
Trade union membership,
Pregnancy and matters relating to it,
Race or ethnic origin or sexual orientation,
Political or religious beliefs,
Being a member of the travelling community,
Redundancy of an employee which is unfair, e.g.
employee chosen because of personality differences,
Employee activity, e.g. taking strike action or if an
employee is suing the Business through the courts.
45

Constructive Dismissal:
Occurs where the working conditions of an
employee are made so intolerable by the employer
that the employee has to leave e.g. alleged bullying.
Burden of proof is on the employee to provide
substantial evidence to show that working
conditions forced them to resign. E.g. Illegal
Business Practice.
46

Procedure for Dismissal: Reason must be given by
the employer, evidence to justify the dismissal
and fair opportunity to respond to the allegations
must be given to the employee.
Employer Procedure:
1. Counsel the employee, i.e. point out the fault and what
the employee can do to fix the problem.
2. If this fails, a verbal warning is given to the employee.
3. If problem persists, a written warning is given to the
employee.
4. A second and final written warning is given.
5. Employee suspension is confirmed in writing, with or
without pay.
47
6. Employee is dismissed.

Employee right to appeal
If they think the dismissal is unfair they can firstly
complain to their employer
If they arent satisfied with the outcome they may
appeal to the Rights Commissioner
If they arent satisfied with the recommendation
of the rights commissioner they can bring their
case to the attention of the EAT.
Employee may further the issue to the Circuit
Court or the High Court
48

Redress for Unfair Dismissal: V NB
Reinstatement old job back with same pay and
conditions. Entitled to any pay increases or
improvements in conditions which were
implemented since the dismissal. Back pay to date of
dismissal.
Redeployment within the Business under acceptable
conditions different yet suitable job. No back pay as
the employee is seen to have contributed in some
way to the dismissal in the first place though still
unfair.
Financial Compensation up to max. 2 years salary
paid may be back pay and pay for a further number
of weeks deemed adequate for dismissed employee
to find a new job.
49
TRADE UNIONS
Functions:
Protect members and their jobs
Seek better pay and conditions for members
Represent members in trade disputes
Co-operate with IBEC and the Government in
centralised wage agreements
Examples: SIPTU, TUI, ASTI
50

Unit 1 - People at Work

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Unit 1 - People at Work

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Unit 1 People at Work

PEOPLE in BUSINESS Who are they?

PEOPLE in BUSINESS Who are they?

PEOPLE in BUSINESS Who are they?

PEOPLE in BUSINESS Who are they?

Trade Associations an interest group representing

SOLVING CONFLICT NON-LEGISLATIVELY

Elements of a Valid Contract (NB)

Elements of a Valid Contract (NB)

Elements of a Valid Contract (NB)

Remedies for BREACH OF CONTRACT

Sale of Goods and Supply of Services Act

Sale of Goods and Supply of Services

Sale of Goods and Supply of Services

Sale of Goods and Supply of Services

Sale of Goods and Supply of Services Act

Sale of Goods and Supply of Services Act

Sale of Goods and Supply of Services Act

Sale of Goods and Supply of Services Act

Consumer Protection Act 2007 (2012

National Consumer Agency (NCA)

SMALL CLAIMS COURT

INDUSTRIAL RELATIONS ACT 1990

INDUSTRIAL RELATIONS ACT 1990

Labour Relations Commission (LRC) Role /

Promote good industrial relations through advice, research and

Types of Industrial Action

Labour Court Role / Functions

Rights Commissioner (RC)

Employment Appeals Tribunal (EAT)

Employment Equality Act 1998

Office of Director of Equality Investigation

Office of Director of Equality Investigation

UNFAIR DISMISSALS ACT 1977 - 2005

UNFAIR DISMISSALS ACT 1977 - 2005

UNFAIR DISMISSALS ACT 1977 - 2005

UNFAIR DISMISSALS ACT 1977 - 2005

UNFAIR DISMISSALS ACT 1977 - 2005

UNFAIR DISMISSALS ACT 1977 - 2005

UNFAIR DISMISSALS ACT 1977 - 2005

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