Task 2017) This act is focused on massively in

Task 2a –
Employment and Corporate Law

Corporate Law
– This is defined as the practice or study of how shareholders, directors,
employees, creditors and other stakeholders such as the community and
environment interact with one another.

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(Google.co.uk, 2017)

This type of law explores the relationships between a
company and its main stakeholders, focusing solely on the way they interact and
affect one another as well as the business. Large construction businesses will
dedicate a lot of time researching the way in which they interact with their
stakeholders as well as how their stakeholders affect the business. For
example, the way in which directors communicate with shareholders will affect
the way a construction company operates.

The reason why corporate law is so pivotal to
construction businesses is because each interaction will impact the way it’s
seen by the parties involved. As there is a lot of competition between
businesses in the industry, they will take due care in their exposure to
different types of parties. This may influence a stakeholder’s decision when
interacting with another.


An example of corporate law which affects construction
companies would be the Health and Safety at Work act 1974. This enforces the UK
health and safety legislation and places a duty on all employers to ensure, so
far as is reasonably practicable, the health, safety and welfare at work of all
their employees. This is also where examples of tort can be introduced
including neglect.

(Legislation.gov.uk, 2017)

This act is focused on massively in the construction
industry and has been developed to specifically suit it. The Health and Safety
Executive was formed in 1975 and has incorporated all H&S legislations into
one organisation. The HSE is now a formally accepted body by the British
government and has certain powers in the industry that affect businesses
massively. Examples include the HSE holding inspections of construction sites
and construction companies construction phase plans, which outline all H&S
involved in a construction job. The legislations enforced by the HSE ensure
compulsory measures are taken to protect all those at work. Examples of
legislations enforced by the HSE include:

Control of Substances Hazardous to Health
Regulations (COSHH)Noise at Work RegulationsElectricity at Work RegulationsConstruction (Design and Management) Regulations

These legislations and regulations outline the
compulsory acts a construction company must comply with in relation to health
and safety at work. This affects all construction companies massively as they
must alter their work methods to suit the regulations not only for health and
safety but for all the other regulations such as contract law also. (Hughes and Ferrett, n.d.)


The CDM regulations focus more on the design of a
construction project as opposed to in the actual construction of it. This looks
at what could affect the tenant of a project once complete including things
such as fire rating, access, and minimum standards and so on. A construction
company must not only comply with these regulations to protect the tenants, but
themselves and more importantly their employees which the health and safety act
focuses on.


Employment law
– is defined as the area of law regulating the relationship between employers
and employees, including what employers can expect from employees and their
rights at work.

(Google.co.uk, 2017)

There are three main sources of UK employment law,
consisting of common law, statute and European Law. Common law is legal basis
that forms the relationship between employer and employee. All employees in the
UK work under a contract which uses common law as principles within it.
However, mandatory statutory requirements will be enforced regardless of the contract
in place. This also ties in with the law of tort, which will govern an
employer’s liability for the acts of its employees and liability for industrial
accidents. A contract of employment will include common law principles and
other company specific requirements such as job title, pay, pension, key
duties, leave, sick pay etc. Supplement to the common law rules, statutory
requirements are also part of employment law in the UK, some of these include:

Equal Pay Act 1970Health and Safety at Work etc Act 1974Employment Rights Act 1996Data Protection Act 1998National Minimum Wage Act 1998

These are the primary statues under employment
protection legislation; however these also have supplementary forms of
legislation called secondary legislation which form further provisions
affecting the employment relationship. (Barnett and
Scrope, 2008)


Construction companies in the UK, like all
others will have to abide by these legislations and law principles. They must
cater for an employee’s employment rights as well as statutory and secondary
legislative rights. Employment law can also relate to anyone employed under a
construction contract. For example if a contractor employs a sub-contractor to
carry out scaffolding works, there will be information in the contract which
makes the contractor liable for any legislation under employment law. When
looking at employment law this way, there are four main stages to the
relationship between the contractor and sub-contractor. These are pre
contractual, formation of relationship as a contractual agreement, the
employment period and the termination of the relationship. During this time the
employer must obey the employment law terms and conditions