FLSB--Discussion questions on Employment law

FLSB--Discussion questions on Employment law - Functions of...

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Functions of Law in Society and Business -Topic 4-Discussion questions on employment Law Question 1 An accountant, Mary, entered into an employment contract with her accounting firm. According to the terms of employment, Mary was not allowed to work as an accountant for 3 years in Central after termination of the employment (restraint of trade clause) or solicit business from the former accounting firm customers. One month after leaving the firm, Mary worked as a senior accountant for another accounting firm in Central. Her former employer wants to sue Mary for breach of employment contract. Advise Mary of her position. (barrier for employee to change another job, to keep the employee) - Breach the freedom of movement of work - However, binding effect in the contract - Under exceptional situation, if the contract is reasonably drafted, the court may give effect on it. - Factor to be considered: duration (3 years is too long), geographical location (too excessive), type of restraint involved (too excessive, cover all areas in ACCT, have to say specific) - Cannot pass the test of reasonableness - Not effective Question 2 Carol is employed as a clerk by a firm of accountants. She is approached by George, a garage owner, who asks Carol if she will do his bookkeeping in her spare time. Explain whether Carol will be breaking her contract of employment if she accepts this offer. Outside work practice - Check the employee contract and see whether there is any expressed restriction. If there is expressed restriction, Carol are breaking the contract. If there is NO expressed restriction, whether there are any implied duties (fiduciary duties, duties of faval services). The employer can argue that George’s work is very similar with the business, expected Carol to transfer the job to the company as he is a potential customer. However, George may not contact Carol’s employer anyway because of the high fees involved, not a mature business opportunity. Page 1 of 7
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Carol not provided any services to her competitor not in direct competition between George and Carol’s competitor, not likely to disclose trade secret not break fiduciary duties, she is allowed to do that. Conclusion: Whether the outside job will affect her fulltime commitment. (especially for junior staff) Question 3 Carol ran a business in Glasgow which specialized in producing computer software programs. Dan and Eve both worked for Carol for a period of three years. They were both described as self-employed and both paid tax as self-employed persons. Carol provided all of their specialist computer equipment. Dan was required to work solely on the projects Carol provided, and he had to attend at her premises every day from 9am till 5pm. Eve usually worked at home and was allowed to work on other projects. Eve could even arrange for her work for Carol to be done by someone else if she was too busy to do it personally.
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