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Question: Answer the following problem question:

Potsdam Mansion is a hotel and conference centre owned and operated by Potsdam Mansion Hotels Ltd. The manager is William.

Frederick is employed as a part-time gardener and handyman by Potsdam Mansion for two days a week, for which he is paid £200 per week, after deductions for tax and National Insurance. He is often asked to work extra days to carry out specific tasks and he is paid a daily rate of £100 per day gross for this extra work. Last month William asked Frederick to reduce the height of three leylandii trees in the grounds by nine feet. The trees were about twenty-seven feet tall. This was an extra job, expected to last one day. Frederick decided to carry out the job using a ladder resting, unsecured, against each tree while he worked. This was a dangerous thing to do, and he fell, injuring himself very severely.

When their regular hotel receptionist went on maternity leave three years ago, Potsdam Mansion approached the Cheap & Cheerful Recruitment Agency Ltd (Cheap & Cheerful) to find them a temporary receptionist. Cheap & Cheerful sent along Elizabeth, who has worked there ever since as the original receptionist decided not to return to work after having her baby. For three years Elizabeth has had a contract with Cheap & Cheerful stating, among other things:

(a) That she is not an employee of Cheap & Cheerful;

(b) That she must obey all reasonable instructions of the client as if she were the client’s employee; and

(c) That she has no obligation to accept any position offered to her by Cheap & Cheerful, however, if she refuses, they will terminate their arrangement with her.

Each week, Elizabeth gets William to sign a worksheet confirming that she has worked her required hours, and she presents that to Cheap & Cheerful, who pay her a week in arrears. Cheap & Cheerful then invoice Potsdam Mansion for that sum plus their 12% agency fee. Potsdam Mansion has now decided it would be cheaper to employ a receptionist directly and told Cheap & Cheerful that Elizabeth’s services were no longer required.

Although Potsdam Mansion employs six permanent staff to wait at table in the restaurant, when they have large functions on they require additional staff. William has a list of forty local workers who he can call on as casual waiters when needed. Henry is among these, and during the three years he has worked for them on average for one day a week, although this means that in some weeks he has worked on two or three consecutive days and in other weeks he has done no work at all. Henry recently had an argument with William over his pay, as a result of which William told Henry that he would get no more work at the hotel.

Advise Potsdam Mansion Hotels Ltd as to whether or not it could liable to Frederick, Elizabeth and Henry on the basis that they are employees of the company.

[NB – YOU ARE ONLY EXPECTED TO CONSIDER THE ISSUE OF FREDERICK, ELIZABETH AND HENRY’S EMPLOYMENT STATUS, NOT WHETHER THEIR CLAIMS WOULD BE LIKELY TO SUCCEED.]

Course code: LW70061E
University of West London School of Law

Module Title: Employment Law, MA Human Resource Management, Masters degree.

COURSEWORK – Assignment 1
Academic Year 2013 – 2014

Answer: Response to Potsdam Mansion Limited This response will look at the individual circumstances of three different staff members of Potsdam Mansion Limited, and outline the extent of the liabilities of each case based on whether or not they are employees of the company. FREDERICK Frederick has been injured whilst carrying out work for Potsdam Mansion (PM); meaning that if he is found to be an employee of the company, PM is potentially liable for a breach of statutory duty under the Health and Safety at Work Act 1974 for failure to ensure the fulfilment of safe working procedures. The liability is likely to cost PM thousands of pounds dependent on the severity of the injury and any future loss of earnings that may arise either temporarily or permanently. In applying the label test, ......(short extract)

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Details: - Mark: 67% | Course: Employment Law | Year: Graduate | Words: 1663 | References: Yes | Date written: December, 2013 | Date submitted: January 04, 2014 | Coursework ID: 831

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