Polkey Reduction Essay Example | Topics and Well Written Essays - 2500 words

Polkey Reduction - Essay Example Although the case originally concerned procedural unfairness ,it has also been used recently in cases of substantial unfairness, for example, if dismissal for a different (fair) reason would have occurred anyway at a later date 3 . Part 3 of the Employment Act 2002 established a framework for promoting the resolution of employment disputes in the workplace and the detail of how the procedures would operate in practice was set out in the Employment Act 2002 (Dispute Resolution) Regulations 2004 which were made on 12th March 2004. Both the remaining provisions of Part 3 of the Act and the Regulations came into force in October 2004. 4This Act was responsible for producing a certain statutory procedure to be followed in the circumstances set out in the Regulations. These two pieces of recent legislation will affect the way that unfair dismissal cases are judged in that is there will be a sort of a "Polkey reversal" .The law as it stood in the previous Act for a dismissal to be fair, the employer had to show that it there was a potentially fair reason for dismissal5 .For this law to apply the dismissal itself had to be reasonable given the circumstances.6 The Polkey decision seemed to cause employment tribunals to put undue weight on procedure rather than the substance of the decisions and this was a very fair criticism given the case law that was generated.However section 34 of the new Act inserts 98A into the Employment Rights Act 1996. The effect of this will be that if an employer dismisses an employee without the correct dismissal and disciplinary procedure this would amount to an unfair dismissal totally. Also now the aggrieved employee would receive a minimum of four weeks' pay as compensation where he or she was found to have been unfairly dismissed and the relevant procedure has not been followed. It should also be noted that that the tribunals do not have to take into account the failures by employers to take procedural actions outside the framework of the relevant dismissal and disciplinary procedure, provided that following such additional procedural actions would have no effect on the decision to dismiss. Also the dismissal may at times still be found unfair under this legislation even if the employer strictly followed the dismissal procedure and yet the reason for dismissal is not potentially fair. 3. The effect of case law since the Dispute Regulations (above) on the 'polkey reduction'. There has been a lot of case law since these regulations and there was particular confusion as to the meaning of the "procedures". The very recent case in the Employment Appeal Tribunal (EAT) in the case of Kelly-Madden v Manor Surgery 7 has ended the confusion following these regulations under section 98A(2) of the Employment Rights Act (hereafter section 98A(2)) which has also been dubbed as a 'Polkey 2 reversal' and was very controversial when it came out in 2002. In the cases of Alexander v Bridgen Enterprisesand Mason v Governing Body of Ward End Primary School (see below)8 EAT adopted two conflicting approaches to the construction of 98

Evaluate the Financial Performance of a Business Assignment

Evaluate the Financial Performance of a Business - Assignment Example Balance sheet Income statement and Cash flow statement. These are the basic statements normally prepared by profit-oriented corporations. These statements help in knowing the profitability and financial soundness of the business concern. These are prepared at the end of a given period of time. Financial statements are used as an important tool to communicate the financial information to parties outside the organization (such as investors, creditors, and other external decisions makers). The Balance Sheet; The purpose of preparing balance sheet is to report the financial position (amount of assets, liabilities, and shareholders’ equity) of a firm during a particular period of time. A balance sheet contains complete information about assets, liabilities, and shareholders’ equity of the company. Assets; Assets are things which have economic value and that which are owned by the company. It include tangible asset, such as plants, trucks, equipment, and inventory. It also in cludes intangible asset, such as trademarks and patents. Cash itself is an asset. Tangible asset can be divided into two, Current asset and fixed asset. Current asset represent the company’s liquidity. This is where companies list all of the stuff which can be converted into cash in a short period of time, usually a year or less (Kennon 2012). Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services, and it is not meant for sale in the normal course of business (Accounting for Fixed Assets n.d). Liabilities: Liabilities include all kind of obligation that a company have. The term liabilities mean the amount of money that a company owes to others. Shareholders’ equity; It is also called capital or net worth. The following formula summarizes what a balance sheet shows: ASSETS = LIABILITIES + SHAREHOLDERS'EQUITY Income Statements; Income statement is a statement which shows the revenue that earned by the com pany during a specific period of time (usually for a year or some portion of a year Income statement also shows the expenses, and the cost associated with the earning of revenue. Income statement also gives information regarding how much the company earned or lost over a period of time. This statement helps to calculate earnings per share (EPS), and it also tells how much money shareholders would get, if the company decides to distribute the whole earnings of the company. Income statement can be also called the statement of operation, or statement of earnings. Statements of Cash Flow; A cash flow statement is a statement that contains a detailed report regarding the company’s inflows and outflows of cash. Cash flow statement is helpful in knowing the net increase or decrease in cash for the period. It is prepared by using the information and reports in the company’s balance sheet and income statement. Cash flow statement is helpful in recognizing the, changes in cash b alance(increase or decrease) sources of cash uses of cash There are three parts included in the cash flow statement. They are (1)  operating activities; (2)  investing activities; and (3)  financing activities. 2. Compare appropriate formats of financial statements for different types of business The financial statements explain from where a company's funds come from, where it goes and where it is at present. â€Å"Owners and CEOs use these statements to manage a business, bankers to check its creditworthiness, and investors to