Background : Contracts are essential for business, and will be an integral part
ID: 397327 • Letter: B
Question
Background: Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law. Each of the owners has experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts.
The GC owners know that there are various types of contract agreements relevant to their business. For example, GC will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, GC will engage in sales contracts with other businesses, and sales contracts between businesses and consumers and clients. Furthermore, GC will use electronic contracts, or e-contracts, in conducting online business transactions.
To reduce risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. Contracts must define rights and responsibilities of the parties. Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should consider bonding.
You, Winnie and Ralph presented draft contracts for several GC employees, including contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.
The GC owners reviewed the drafts and have some questions about the contracts.
Instructions: At Winnie’s and Ralph’s request, it is your responsibility to research and provide answers to the GC owners’ questions.
The first questions relate to the GC cleaner-employee contract.
The cleaner-employee contract specifies the following terms and conditions:
• duties to be performed by cleaner-employee
• salary for cleaner-employee
• work hours
• terms of payment for overtime or holiday work, if any
• sick leave
• vacation
• training for cleaner-employee
• length of contract
• bonding for cleaner-employee
• periodic performance evaluation and how it will be conducted
• termination of contract, i.e., notice of termination, etc.
Research, evaluate, and respond to the owners’ questions about the contract terms below.
A. duties to be performed by cleaner-employees
1. What potential risks and liabilities could arise if the specific duties of cleaner-employees were not included in their contract with GC? Explain.
B. training for cleaner-employees
1. What possible risks and liabilities could arise related to this contract term that designates specific and required training for GC cleaner-employees?
2. Would the risks and liabilities be greater or less if GC did not train its cleaner-employees and hired only experienced cleaner-employees? Why?
C. bonding for cleaner-employees
1. What possible risks and liabilities could arise for GC if cleaner-employees were not required, specifically in their contracts, to be bonded? Explain.
Explanation / Answer
The national labour Relations Act, National labour relations board, and right to work state definitely influence and effect stuffing within every organisation, as they have a simultaneous relationship with all employees considering that they are responsible for safeguarding the Welfare of the employees. The nlrb ensures unfair labour practices do not exist and in case any such practices are brought to the notice of the board immediate remedial action is initiated. The NLRA protects the employees as well as the employers and encourages collective barganing on either side to ensure a Win-Win situation for all involved parties, This ensures that overall us economy benefits and flourishes due to satisfaction on both sides. Right to work States ensure that labour unions do not become the law and start controlling all employees resulting in an imbalance of power between employers and the union. Therefore the states provide power to an individual to be able to work without being part of a labour Union. Therefore, it is obvious that these acts and bodies have a major impact on the workforce within every organisation as they have relationship and control over all employees as well as employers. it is essential that the recruitment plan be extremely clear with clear demarcation roles of various employees within various departments and which type of staffing solution required weather permanent or part time and extent of utilisation of contingent staff. It becomes essential here to implement all the rules and regulations existing within the nlrb and ensure that all provisions of the NLRA have been followed. On the Welfare payments due to employees as per regulations should be planned for and adhered to strictly. Policies for Welfare of employees and to safeguard the health and ensure safety of all within the organisation, should be a part of the policy Framework followed by any organisation.
A. 1. The potential risks and liabilities that could arise if the specific duties of cleaner-employees were not included in their contract with GC is the employee can sue for discrimination under Chapter VII as being offered a menial job due to being of a specific sex, caste or color, or lodge grievance for right to fair wages, as unless the job is defined the fairness of compensation cannot be judged by an individual.
B1)The occupational safety and health Administration Act of 1970 was to ensure safety of workers at workplace and also ensure that all employees fulfill their responsibilities of minimising occupational safety and health hazards at the place of employment by providing safe and healthy working conditions for all employees. If adequate training is not provided resulting in injury the employee can sue the employer under OSHA. The training needs to be in accordance with standards specified by OSHA.
2) The risks and liabilities would be less as experienced staff is less prone to accidents but it in noway allows for laxity in provision of all applicable safety equipment and measures. Only saving on cost of training and better handling of equipment are the advantages which may also be minor as at times younger staff may have greater output. However, OSHA has certain guidelines which are to be followed irrespective of experience;
C1) Bonds generally provide protection from loss resulting out of actions of the employee for the company. It protects them from criminal acts of employees, from losses resulting due to negligence of employees, or their misbehaviour or mis-representation of the company as an agent of the same. A bond serves as an insurance against such loss resulting through employees and can also cover extensive losses due to mishandling of equipment, in spite of training being provided. in such cases having a bond can indemnify an employer and cover his losses to a large extent, especially when an employee is in no condition to compensate personally for the same.
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