UK company law and precarious employment contracts
Abstract
Purpose
This 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/approach
The 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.
Findings
The 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/value
The 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.
Keywords
Citation
Ndzi, E. (2017), "UK company law and precarious employment contracts", International Journal of Law and Management, Vol. 59 No. 4, pp. 571-583. https://doi.org/10.1108/IJLMA-04-2016-0043
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited