Employment Law

Table of Contents

1. Introduction to Employment Law
2. Definition of Employment
3. Employment Contracts
4. Termination of Employment
5. Discrimination and Harassment
6. International Case Laws on Employment
7. Conclusion

1. Introduction to Employment Law

1.1 Meaning and Scope of Employment Law

Employment law is a branch of law that governs the legal relationship between employers and employees. It regulates the rights, duties, and obligations of both parties within the workplace. Employment law covers areas such as hiring, working conditions, wages, termination, discrimination, harassment, and workplace safety.

1.2 Importance of Employment Law

Employment law is essential for maintaining fairness and balance in the workplace. It protects employees from exploitation and unfair treatment while providing employers with clear rules for managing their workforce. Effective employment law promotes industrial harmony, productivity, and social justice.

1.3 Employment Law in the International Context

In an increasingly globalised economy, employment relationships often cross national boundaries. International employment law addresses issues such as multinational employment practices, migrant workers’ rights, international labour standards, and cross-border disputes. International organisations such as the International Labour Organization (ILO) play a key role in setting global labour standards.

2. Definition of Employment

2.1 Meaning of Employment

Employment refers to a legal relationship in which one party, the employee, agrees to provide work or services to another party, the employer, in exchange for remuneration. This relationship is characterised by an element of subordination, where the employee works under the authority and direction of the employer.

2.2 Control Test

The control test examines the extent to which the employer has the right to direct how, when, and where the employee performs their work. A high level of control usually indicates an employment relationship rather than independent contracting.

2.3 Mutuality of Obligation

Mutuality of obligation refers to the employer’s obligation to provide work and the employee’s obligation to accept and perform that work. This element is central to distinguishing employees from casual or independent workers.

2.4 Remuneration

Remuneration includes wages, salaries, bonuses, allowances, and other benefits paid in return for work performed. The existence of remuneration is a key indicator of employment.

3. Employment Contracts

3.1 Meaning of an Employment Contract

An employment contract is a legally binding agreement between an employer and an employee that sets out the terms and conditions of employment. It defines the rights and obligations of both parties and provides certainty in the employment relationship.

3.2 Types of Employment Contracts

Employment contracts may be express or implied. Express contracts are written or oral agreements that clearly state the terms of employment. Implied contracts arise from the conduct of the parties, workplace practices, or established customs.

3.3 Essential Elements of an Employment Contract

An employment contract must contain offer and acceptance, consideration, intention to create legal relations, and lawful terms. These elements ensure the validity and enforceability of the contract.

3.4 Terms and Conditions of Employment

Terms of employment may include job description, working hours, remuneration, leave entitlements, disciplinary procedures, and termination conditions. Some terms are expressly stated, while others are implied by law or custom.

4. Termination of Employment

4.1 Meaning of Termination

Termination of employment refers to the lawful ending of the employment relationship. It may be initiated by the employer, the employee, or occur by operation of law.

4.2 Termination by Notice

Termination by notice occurs when either party gives the required notice period as specified in the employment contract or relevant legislation. Failure to give proper notice may result in liability for breach of contract.

4.3 Termination for Breach of Contract

Termination may occur where one party commits a serious breach of the employment contract. This includes misconduct, incompetence, or failure to perform contractual duties.

4.4 Constructive Dismissal

Constructive dismissal occurs when an employer’s conduct makes continued employment intolerable, forcing the employee to resign. The resignation is treated as a dismissal under the law.

4.5 Termination by Mutual Agreement or Operation of Law

Employment may end by mutual agreement between the parties or through operation of law, such as redundancy, expiry of a fixed-term contract, or changes in legal status.

5. Discrimination and Harassment

5.1 Meaning of Discrimination

Discrimination in employment refers to unfair or unequal treatment of employees or job applicants based on protected characteristics. Employment law seeks to ensure equality, dignity, and fairness in the workplace.

5.2 Grounds of Discrimination

Common grounds of discrimination include age, sex, race, disability, religion, sexual orientation, and marital status. Discrimination may be direct or indirect.

5.3 Meaning of Harassment

Harassment refers to unwanted conduct related to a protected characteristic that violates a person’s dignity or creates a hostile, intimidating, or offensive working environment.

5.4 Employer’s Duty

Employers have a legal duty to prevent discrimination and harassment by implementing workplace policies, training employees, and responding promptly to complaints.

6. International Case Laws on Employment

6.1 Western Excavating (ECC) Ltd v Sharp (1978) – UK

This case established the principle of constructive dismissal, holding that an employee may treat themselves as dismissed if the employer commits a fundamental breach of contract.

6.2 Burdett-Coutts v Hertfordshire County Council (1984) – UK

The court recognised the existence of implied terms in employment contracts, particularly the duty of mutual trust and confidence between employer and employee.

6.3 Griggs v Duke Power Co (1971) – USA

This case introduced the concept of indirect discrimination, holding that employment practices that appear neutral may be unlawful if they disproportionately disadvantage certain groups.

6.4 Meritor Savings Bank v Vinson (1986) – USA

The court recognised sexual harassment as a form of sex discrimination, even where no tangible economic loss is suffered.

6.5 Coleman v Atchcroft (2007) – UK

This case extended protection against disability discrimination to individuals associated with disabled persons.

6.6 Autoclenz Ltd v Belcher (2011) – UK

The court held that employment status depends on the reality of the working relationship rather than the wording of the contract.

6.7 EEOC v Abercrombie & Fitch Stores, Inc (2015) – USA

This case addressed religious discrimination, holding that employers must reasonably accommodate religious practices unless it causes undue hardship.

7. Conclusion

7.1 Summary of Key Principles

International employment law regulates the relationship between employers and employees by defining employment status, governing contracts, regulating termination, and prohibiting discrimination and harassment.

7.2 Importance of International Standards

International case law and labour standards promote consistency, fairness, and protection of workers’ rights across jurisdictions.

7.3 Final Observations

A strong understanding of employment law is essential for employers, employees, HR professionals, and policymakers. It ensures lawful workplace practices, reduces disputes, and promotes dignity, equality, and justice in employment relationships.

Employment Law/E-cyclopedia Resources by Kateule Sydney is licensed under CC BY-SA 4.0