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

69 Questions | Total Attempts: 78

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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. 
    • 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.
  • 26. 
    Terms implied by the courts - Duties of the employer   -r Duty of _______ ___________ -  The employer has a duty not to behave in a manner calculated to damage the relationship of trust and confidence, e.g. by abusively reprimanding an employee.
  • 27. 
    Terms implied by the courts - Duties of the employer   _________ of work - There is no general common law duty to provide work. However, such a term may be implied, under the business efficacy test, where failure to provide work would deprive the employee of a benefit contemplated by the contract. For example, if the contract expressly provides for remuneration on a piecework or commission basis it may be possible to imply a duty on the employer to provide sufficient work to enable the employee to earn a reasonable sum.
  • 28. 
    Terms implied by the courts - Duties of the employer   Where the employee is skilled and needs practice to maintain those skills, there may be an obligation to provide a reasonable amount of work.  As shown in -
    • A. 

      William Hill Organisation Ltd v Tucker (1998) William Hill Organisation Ltd v Tucker (1998)

    • B. 

      Spring v Guardian Assurance (1994)

    • C. 

      Latimer v AEC Ltd (1953)

  • 29. 
    Terms implied by the courts - Duties of the employer   There is no duty to provide a reference but, if one is provided, it must be truthful, as shown in -
    • A. 

      Spring v Guardian Assurance (1994)

    • B. 

      William Hill Organisation Ltd v Tucker (1998)

    • C. 

      Latimer v AEC Ltd (1953)

  • 30. 
    Terms implied by statute Gives employees certain rights, such as a right not to be unfairly dismissed, a right to a redundancy payment if made redundant and a right to a minimum period of notice to terminate the contract.
    • A. 

      ERA 1996

    • B. 

      Working Time Regulations 1998

    • C. 

      Employment Act 2002

    • D. 

      Equal Pay Act 1970

    • E. 

      National Minimum Wage Act 1998

  • 31. 
    Terms implied by statute Limit the hours of work to an average of 48 a week. It also gives the right to four weeks' paid leave a year and one day off each week.
    • A. 

      ERA 1996

    • B. 

      Working Time Regulations 1998

    • C. 

      Employment Act 2002

    • D. 

      Equal Pay Act 1970

    • E. 

      National Minimum Wage Act 1998

  • 32. 
    Terms implied by statute Gives parents of children under seventeen or disabled children under eighteen the right to request flexible working arrangements. The employer must give serious consideration to such a request and can only reject it for clear business reasons. The Act also introduced paternity and adoption leave.
    • A. 

      ERA 1996

    • B. 

      Working Time Regulations 1998

    • C. 

      Employment Act 2002

    • D. 

      Equal Pay Act 1970

    • E. 

      National Minimum Wage Act 1998

  • 33. 
    Terms implied by statute Deals not only with pay, but other terms, e.g. holiday and sick leave. Implies an equality clause into all contracts of employment if workers of the opposite sex do the same job or a different job of equal value.
    • A. 

      ERA 1996

    • B. 

      Working Time Regulations 1998

    • C. 

      Employment Act 2002

    • D. 

      Equal Pay Act 1970

    • E. 

      National Minimum Wage Act 1998

  • 34. 
    Terms implied by statute Imposes minimum levels of pay.
    • A. 

      ERA 1996

    • B. 

      Working Time Regulations 1998

    • C. 

      Employment Act 2002

    • D. 

      Equal Pay Act 1970

    • E. 

      National Minimum Wage Act 1998

  • 35. 
    ERA 1996 imposes the following minimum notice periods for the employer: Continuous employment Period of notice 1 month-2 years 2-12 years 12 years + 1 week 1 week per complete year 12 weeks
    • A. 

      True

    • B. 

      False

  • 36. 
    ERA 1996 imposes the following minimum notice periods for employees: An employee with at least four weeks’ continuous employment must give his employer at least four week’s notice of his terminating of the contract.
    • A. 

      True

    • B. 

      False

  • 37. 
    A claim for ________ __________ is a common law action for breach of contract. The claim is available to both employees and independent contractors.  The usual rules of breach of contract will apply.
  • 38. 
    Wrongful dismissal occurs where the employer terminates the contract:
    • A. 

      Without giving proper notice

    • B. 

      Without giving sufficient notice

    • C. 

      During its fixed term

  • 39. 
    Dismissal without notice is known as _______ dismissal
  • 40. 
    Summary dismissal is usually wrongful dismissal unless the employee:
    • A. 

      Waives their rights or accepts payment in lieu of notice

    • B. 

      Repudiates the contract themselves or is in fundamental breach

    • C. 

      Repudiates their rights or accepts payment in lieu of notice

    • D. 

      Waives the contract themselves or is in fundamental breach

  • 41. 
    An individual who believes he has been wrongfully dismissed may sue in the County court or High Court for damages. The limitation period for such a claim is six years.
  • 42. 
    An employee, he can bring a claim to the employment tribunal provided he does so within three months of his dismissal and the claim is for £25,000 or less.
  • 43. 
    ________ _________ is where the employer terminates the contract without justifiable reason. This is a statutory right under the Employment Rights Act 1996.  Only employees can bring an action for ______ ________
  • 44. 
    Normally employees who resign deprive themselves of the right to make a claim for redundancy or unfair dismissal. However, s95 ERA 1996 covers situations where ‘the employee terminates the contract with, or without, notice in circumstances which are such that he or she is entitled to terminate it without notice by reason of the employer’s conduct’. This is known as ____________ dismissal.
  • 45. 
    An employee is entitled to treat himself as constructively dismissed if the employer is guilty of conduct which is a significant breach going to the root of the contract of employment, or which shows that the employer no longer intends to be bound by one or more of the essential terms of the contract. Whether the employee leaves with or without notice, the conduct must be sufficiently serious to entitle him to leave at once. However, he must act quickly, for if he continues for any length of time without leaving, he will be regarded as having elected to affirm the contract and will lose his right to treat himself as discharged. As shown in -
    • A. 

      Western Excavating (ECC) Ltd v Sharp (1978)

    • B. 

      Donovan v Invicta Airways (1970)

    • C. 

      Simmonds v Dowty Seals Ltd (1978)

    • D. 

      Kevin Keegan v Newcastle United Football Club Limited (2010)

  • 46. 
    Where a repudiatory breach occurs the employee resigns and will have an action against the employer for wrongful dismissal. As shown in -  Pick three
    • A. 

      Donovan v Invicta Airways (1970)

    • B. 

      Simmonds v Dowty Seals Ltd (1978)

    • C. 

      Kevin Keegan v Newcastle United Football Club Limited (2010)

    • D. 

      Western Excavating (ECC) Ltd v Sharp (1978)

  • 47. 
    A failure to investigate a health and safety complaint was held to be conduct sufficient to entitle the employee to treat the contract as terminated. As shown in -
    • A. 

      British Aircraft Corporation v Austin (1978)

    • B. 

      Simmonds v Dowty Seals Ltd (1978)

    • C. 

      Western Excavating (ECC) Ltd v Sharp (1978)

    • D. 

      Donovan v Invicta Airways (1970)

  • 48. 
    If the employee does not resign in the event of the breach, he is deemed to have accepted the breach and waived any rights. However, he need not resign immediately and may legitimately wait until he has found another job.  As shown in -
    • A. 

      Cox Toner (International) Ltd v Crook (1981)

    • B. 

      Simmonds v Dowty Seals Ltd (1978)

    • C. 

      Donovan v Invicta Airways (1970)

    • D. 

      Western Excavating (ECC) Ltd v Sharp (1978)

  • 49. 
    Dismissal for one of the following reasons is fair unless the employer acted unreasonably in dismissing for the reason given:
    • A. 

      Capabilities/qualifications of employee

    • B. 

      Conduct of employee

    • C. 

      Redundancy

    • D. 

      Retirement

    • E. 

      Continued employment would contravene statute

    • F. 

      Some other substantial reason

    • G. 

      Resignation

    • H. 

      Status of employee

    • I. 

      Conduct of employer

  • 50. 
    An employer can only rely on a given reason for dismissal where he knew of it at the date of the dismissal. As shown in - (two cases)
    • A. 

      Devis W & Sons Ltd v Atkins (1977)

    • B. 

      Stevenson v Golden Wonder Ltd (1977)

    • C. 

      Singh v London Country Bus Services (1976)

    • D. 

      Polkey v Dayton (AE) Services (1987)

  • 51. 
    An example of ‘some other substantial reason’ justifying dismissal is the case of __________  where an employee in a position of trust was convicted of a criminal offence of dishonesty (which he committed off duty).
    • A. 

      Singh v London Country Bus Services (1976)

    • B. 

      Devis W & Sons Ltd v Atkins (1977)

    • C. 

      Polkey v Dayton (AE) Services (1987)

    • D. 

      Stevenson v Golden Wonder Ltd (1977)

  • 52. 
    Once the employee has shown they were dismissed and the employer has shown that it was for one or more of the six fair reasons it is then for the ________ to decide whether the dismissal was fair or unfair.
  • 53. 
    S98(4) ERA 1996 states that the determination of this question ‘depends on whether in the _____________ (including the size and administrative resources of the employer’s undertaking) the employer acted reasonably or unreasonably in treating it (the reason) as a sufficient reason for dismissing the employee’. The question ‘shall be determined in accordance with equity and the substantial merits of the case’.
  • 54. 
    Case law shows that this ‘____________ ____‘ involves two questions: - Whether the reason given was sufficiently serious to justify dismissal - Whether the employer adopted reasonable procedures both in coming to the decision to dismiss and in the manner of the dismissal
  • 55. 
    The ___________, Conciliation and Advisory Service (ACAS) has issued codes of practice for procedures to be followed in coming to the decision to dismiss an employee (e.g. warnings, proper inquiry into alleged misconduct, etc.) which the employment tribunal has regard to.
  • 56. 
    The Arbitration, Conciliation and Advisory Service (ACAS) has issued codes of practice for procedures to be followed in coming to the decision to dismiss an employee (e.g. warnings, proper inquiry into alleged misconduct, etc.) which the employment tribunal has regard to. These were illustrated by the House of Lords in Polkey v Dayton (AE) Services (1987) where it was stated that:
    • A. 

      In a case of incapability, the employer will normally not act reasonably unless he gives the employee fair warning and an opportunity to mend his ways and show he can do the job

    • B. 

      In a case of misconduct, the employer will normally not act reasonably unless he investigates the complaint fully and fairly and hears whatever the employee wishes to say in his defence or in explanation or mitigation

    • C. 

      In a case of redundancy (this was the situation in Polkey) the employer will normally not act reasonably unless he warns and consults any employees affected or their representative, adopts a fair basis upon which to select for redundancy and takes such steps as may be reasonable to avoid or minimise redundancy by redeployment within his own organisation

    • D. 

      In a case of incapacity, the employer will normally not act reasonably unless he gives the employee fair warning and an opportunity to mend his ways and show he can do the job

    • E. 

      In a case of dismissal, the employer will normally not act reasonably unless he investigates the complaint fully and fairly and hears whatever the employee wishes to say in his defence or in explanation or mitigation

  • 57. 
    Dismissal for one of the following reasons is automatically unfair. This means that there is no need to meet the length of employment condition. The tribunal will also make an additional award of compensation.
    • A. 

      Victimisation of health and safety complainants or whistleblowers

    • B. 

      Pregnancy or the exercise of maternity leave rights

    • C. 

      Trade union membership/non-membership/activities

    • D. 

      Assertion of a statutory right

    • E. 

      Unfair selection for redundancy

    • F. 

      Long term sickness

  • 58. 
    Remedies for unfair dismissal:  ______________ Employee treated as if not dismissed. Returned to same job with no loss of seniority. Only awarded if the applicant wishes and if it is practicable.
  • 59. 
    The employer’s failure to comply with an order for reinstatement or re-engagement results in _____________.
  • 60. 
    _________ award of compensation: 18-21 years of age – ½ week’s pay for each year of service 22-40 years of age – 1 week’s pay for each year of service 41 plus – 1½ weeks’ pay for each year of service Maximum – 20 years’ service at £380 a week
  • 61. 
    _____________ award of compensation: Discretionary award of up to £65,300. Based on employee’s losses and expenses. Reduced if the complainant contributed to his dismissal
  • 62. 
    __________ award of compensation:  Given where: - the employer ignores an order for reinstatement or re-engagement - the dismissal is unfair because of race, sex or disability discrimination - the reason cited for dismissal is an inadmissible one.
  • 63. 
    An employee is _________ if his dismissal is wholly or mainly attributable to the fact that: - the employer has ceased, or intends to cease, business for the purposes for which the employee has been employed - the employer has ceased, or intends to cease to carry on the business in the place where the employee was employed, or - the requirements of that business for employees to carry out work of a particular kind, or for them to carry out the work in the place where they were so employed, have ceased or diminished
  • 64. 
    If you fail to ________ employees - and their representatives if applicable - in a redundancy situation, the redundancy dismissals will almost certainly be unfair.
  • 65. 
    If you plan to make 20 or more employees redundant in one place of work within a 90-day period, known as a _________ redundancy situation, you must: - Notify the Department for Business, Innovation & Skills; and - Consult with workplace representatives. These may be either trade union representatives or, where no union is recognised, elected employee representatives instead. If your employees choose not to elect employee representatives, you must give the relevant information directly to each individual
  • 66. 
    __________ must start in good time - when redundancy proposals are in their formative stage - and at least: 30 days before the first redundancy where there are 20 to 99 proposed redundancies 90 days in advance where there are 100 or more proposed redundancies
  • 67. 
    Redundancy pay is calculated in the same way as the _____ award for unfair dismissal.
  • 68. 
    An employee is not entitled to redundancy pay if they unreasonably refuse an offer of fresh employment (made before the old contract expires) to start within ____ weeks on the same or suitable terms. The employee must be allowed at least a _____ week trial period in the new job.
  • 69. 
    Whether the alternative employment offered is suitable, or the offer was unreasonably refused, are both questions of fact to be determined by reference to such matters as the employee’s skill and working conditions, the requirements of his family, change in earnings, age, health, sex, etc. Any dispute arising in this respect is for the tribunal to determine and the onus of proof is on the employer. As shown in -
    • A. 

      Taylor v Kent County Council (1969)

    • B. 

      Polkey v Dayton (AE) Services (1987)

    • C. 

      Singh v London Country Bus Services (1976)

    • D. 

      Devis W & Sons Ltd v Atkins (1977)