ACCA F4 Employment Law: Rights, Discipline And Dismissal! Trivia Quiz

69 Questions | Total Attempts: 94

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ACCA F4 Employment Law: Rights, Discipline And Dismissal! Trivia Quiz

There are some laws that govern the type of relationship that exists between employees and their employers. As an accounting student, you should have a clear understanding of these laws when you go to the outside world. Give the quiz a try and see if you know everything about them.


Questions and Answers
  • 1. 
    An employee -  
    • A. 

      Works under a contract of service

    • B. 

      Works under an contract for services

  • 2. 
    A number of tests can be used to determine if someone is employed or self-employed: 
    • A. 

      The control test

    • B. 

      The integration test

    • C. 

      The economic reality test

    • D. 

      The financial risk test

    • E. 

      The provision test

  • 3. 
    The _______ test:  employees are subject to control by their employer as to how, where and when they do their work: Yewens v Noakes (1880). (Note, however, that this test is inappropriate for skilled workers.) 
  • 4. 
    The _________ test – someone is regarded as an employee if their work is an integral part (i.e. part and parcel) of the business and not merely an accessory to it. (Note, however, that this test has become difficult to apply as a sole criterion.) 
  • 5. 
     The ________ ______ test (or multiple test) – under this test the court takes all the surrounding factors into account. 
  • 6. 
    The economic reality test involves asking whether the person who is doing the work, is doing so as a person in business on his own account. Relevant factors are: 
    • A. 

      Control

    • B. 

      Provision of his own equipment

    • C. 

      Whether he hires his own helpers

    • D. 

      Degree of financial risk he undertakes

    • E. 

      Degree of responsibility he bears for investment and management

    • F. 

      The extent to which he has an opportunity of profiting from sound management in the performance of his task

    • G. 

      Whether there is a regular method of payment

    • H. 

      Whether the person works regular hours

    • I. 

      Whether there is mutuality of obligations

    • J. 

      Whether there is a set work location

    • K. 

      Whether he may take holiday

    • L. 

      Whether the person is entitled to statutory (bank) holidays

  • 7. 
     The economic reality test (or multiple test) can be shown in -  
    • A. 

      Ready Mixed Concrete (South East) Ltd v Minister of Pensions & National Insurance & Others (1968)

    • B. 

      Pepper v Webb (1968)

    • C. 

      Secretary of State for Employment v ASLEF (1972)

    • D. 

      Lister v Romford Ice & Cold Storage Ltd (1972)

  • 8. 
    The type of working relationship has a number of consequences:  An employee -  
    • A. 

      Receive statutory protection

    • B. 

      Does not receive statutory protection

    • C. 

      Has implied terms in contract

    • D. 

      Does not have implied terms in contract

    • E. 

      Employer is vicariously liable for the acts of workers when they act in the course of the employer’s business

    • F. 

      Employer is not vicariously liable for the acts of workers when they act in the course of the employer's business

    • G. 

      Upon insolvence, is a preferential creditor

    • H. 

      Upon insolveny, is not a preferential creditor

    • I. 

      Receive their pay net of income tax and national insurance under the PAYE system

    • J. 

      Are taxed under the trading income provisions

    • K. 

      Certain state benefits are available

    • L. 

      Certain state benefits are not available

  • 9. 
    The type of working relationship has a number of consequences:  An independent contractor -  
    • A. 

      Receive statutory protection

    • B. 

      Does not receive statutory protection

    • C. 

      Has implied terms in contract

    • D. 

      Does not have implied terms in contract

    • E. 

      Employer is vicariously liable for the acts of workers when they act in the course of the employer’s business

    • F. 

      Employer is not vicariously liable for the acts of workers when they act in the course of the employer's business

    • G. 

      Upon insolvence, is a preferential creditor

    • H. 

      Upon insolveny, is not a preferential creditor

    • I. 

      Receive their pay net of income tax and national insurance under the PAYE system

    • J. 

      Are taxed under the trading income provisions

    • K. 

      Certain state benefits are available

    • L. 

      Certain state benefits are not available

  • 10. 
    A contract of employment will consist of: - express _____ - _____ implied by the courts   - _____ implied by statute  -  
  • 11. 
    ______ terms are those agreed by the parties themselves. The agreement may be written or oral. 
  • 12. 
    The Employment Rights Act 1996 (ERA 1996) requires an employer to provide an employee with a written statement of certain particulars of their employment within ___ months of the commencement of employment. 
  • 13. 
    The statement of particulars of employment  must include details of: 
    • A. 

      Pay rates and interval

    • B. 

      Job title

    • C. 

      Hours of work

    • D. 

      Place of work

    • E. 

      Length of notice

    • F. 

      Details of disciplinary or grievance procedures

    • G. 

      Date of commencement of employment

    • H. 

      Statutory holidays

    • I. 

      Name of line manager

    • J. 

      Job specification

  • 14. 
    Any change to the statement of particulars of employment   must be notified by written statement within two month. 
    • A. 

      True

    • B. 

      False

  • 15. 
    The statement of particulars of employment is not a _______ unless both parties agree and it is called a ______. It is strong prima facie evidence of the terms of the _______, but is not conclusive. 
  • 16. 
    Terms implied by the courts - Duties of the employee    -  - Duty to obey lawful and reasonable orders as shown in -
    • A. 

      Pepper v Webb (1968)

    • B. 

      Secretary of State for Employment v ASLEF (1972)

    • C. 

      Lister v Romford Ice & Cold Storage Ltd (1972)

    • D. 

      Sinclair v Neighbour (1967)

  • 17. 
    Terms implied by the courts - Duties of the employee    -  - Duty of mutual co-operation (or the duty to perform the work in a reasonable manner)      as shown in -
    • A. 

      Pepper v Webb (1968)

    • B. 

      Secretary of State for Employment v ASLEF (1972)

    • C. 

      Lister v Romford Ice & Cold Storage Ltd (1972)

    • D. 

      Sinclair v Neighbour (1967)

  • 18. 
    Terms implied by the courts - Duties of the employee    -  - Duty to exercise reasonable care and skill          as shown in -
    • A. 

      Pepper v Webb (1968)

    • B. 

      Secretary of State for Employment v ASLEF (1972)

    • C. 

      Lister v Romford Ice & Cold Storage Ltd (1972)

    • D. 

      Sinclair v Neighbour (1967)

  • 19. 
    Terms implied by the courts - Duties of the employee    -  -   Duty of good faith – a duty to give honest and faithful service The employee cannot use the employer’s property as his own, and must account to his employer for any money or property which he receives in the course of his employment.  The employee may do other work in his own time. However, the law imposes a duty not to do spare time work which competes with that of his employer and may cause his employer damage. An employee must not disclose trade secrets to a third party nor misuse confidential information he has acquired in the course of his employment. This implied duty may continue after the employment has ceased. Clearly an employee who uses or sells secret processes, such as chemical formulae, or photocopies list of customers and sells them or uses them for his own purposes will be in breach. The real problem arises in drawing a line between trade secrets/confidential information and general knowledge and skill acquired by the employee in the course of his employment.  An employee may always use skills he has learnt in his employment. As shown in - The employee cannot use the employer’s property as his own, and must account to his employer for any money or property which he receives in the course of his employment.    .. (Pick two)
    • A. 

      Sinclair v Neighbour (1967)

    • B. 

      Hivac Ltd v Park Royal Scientific Instruments Ltd (1946)

    • C. 

      Latimer v AEC Ltd (1953)

    • D. 

      Lister v Romford Ice & Cold Storage Ltd (1972)

  • 20. 
    Terms implied by the courts - Duties of the employee   -  -   Duty to render personal service - Employees may not _______ the performance of their work to someone else unless they have their employer’s express or implied permission to do so.   
  • 21. 
    Terms implied by the courts - Duties of the employer   -  -   Duty to pay reasonable remuneration - this will be implied in the absence of an express _________ regarding pay   
  • 22. 
    Terms implied by the courts - Duties of the employer   -r Duty to ________ the employee - The employer must _________ his employee where the employee has incurred a legal liability or necessary expenses whilst acting on the employer’s behalf.   
  • 23. 
    Terms implied by the courts - Duties of the employer   -r At common law the employer is under a duty to take reasonable care for the ______ ___ _______of his employees. Breach of this duty exposes the employer to liability in negligence to his employees.
  • 24. 
    Terms implied by the courts - Duties of the employer   -r Duty to provide a safe system of work In assessing the reasonableness of the employer in these matters a number of factors must be considered. For example: what was the risk of injury? What was the cost of prevention? What were the characteristics of the employee? If the employer has not acted unreasonably, he has not been negligent, and has no common law liability.  As shown in -
    • A. 

      Latimer v AEC Ltd (1953)

    • B. 

      William Hill Organisation Ltd v Tucker (1998)

    • C. 

      Spring v Guardian Assurance (1994)

  • 25. 
    Terms implied by the courts - Duties of the employer   -r Duty to give reasonable notice of ___________ of employment In practice this implied duty rarely arises since most contracts of employment contain express provision stating the exact length of notice or stating that the contract is to be for a fixed term.  Also there are statutory minimum periods of notice.