UK company law and precarious employment contracts

Abstract

PurposeThis paper aim to examine the implication of section 172(1)(b) on employment rights, particularly on workers on precarious employment contracts. The aim of the paper is to analyse whether company directors have any liability for potential abuse of worker on precarious employment contracts. The paper examine the advantage of companies recruiting staff on precarious employment contracts and the effect of such contract on the worker. Design/methodology/approachThe paper reviews case law, statutory provisions and academic opinions on precarious employment contracts and its advantages and disadvantages to the company and the worker. The paper critically reviews the impact of Section 172(1)(b) of the Companies Act 2006 on precarious employment contract workers. FindingsThe paper argues that companies benefit more from precarious employment contracts than workers do. The Companies Act 2006 is silent on whether directors should factor the interest of precarious employment worker when making company decision, thereby leaving these workers in a vulnerable position and at the mercy of the employers. Originality/valueThe paper offers a different argument about why the use of precarious employment contracts is on the rise in the UK. It highlights the silence of the Companies Act 2006 as a driver for the increase in the use of precarious employment contracts in the UK.

Strategic ambidexterity and its role in achieving contemporary initiatives: an exploratory study of opinions of a sample of managers of travel and tourism companies in holy governorate of Kerbala-Iraq

“…Because of this economic downturn, many companies were struggling to recover from it and this led to an increase in the use of precarious employment contracts such as overtime, informal work, hourly contract work, agency work, part-time work, etc. In [25], among the most common forms of employment is the use of fixed-term (temporary) employment contracts that differ from standard type. This sort of work has become a prominent element of the labour market in several European Union member states (EU).…”