CIMA BA4 study materials
CIMA BA4 study resources

CIMA BA4: Employment law

CIMA BA4 · Work through your exam, one topic at a time.

All guide sections

Employment law

What BA4 tests

Employment law questions test the employment relationship, statutory rights, discrimination and termination. The key skill is distinguishing employee status and the correct claim.

Status and contract

An employee works under a contract of service and usually has personal service, control and mutuality of obligation. A worker performs work personally but is not a client/customer, so gets core rights such as minimum wage and working time but not unfair dismissal. The self-employed are generally outside these protections. Employers must give written particulars within two months and pay statutory minimum notice: one week per complete year of service, up to 12 weeks, after one month. The Equality Act 2010 protects nine characteristics: age, disability, gender reassignment, marriage/civil partnership, pregnancy/maternity, race, religion/belief, sex and sexual orientation. It covers direct and indirect discrimination, harassment and victimisation. Indirect discrimination can be justified; disability requires reasonable adjustments.

Dismissal and redundancy

Wrongful dismissal is a contractual claim for dismissal without notice or pay. Unfair dismissal requires two years' qualifying service (with exceptions), a potentially fair reason (capability, conduct, redundancy, legal restriction or some other substantial reason) and a reasonable procedure, including the ACAS Code. Automatically unfair reasons include pregnancy, whistleblowing and trade union membership. Remedies are reinstatement, re-engagement or compensation. Redundancy requires a genuine diminished need for work, fair selection and consultation; 20 or more dismissals trigger collective consultation.

Worked example

An employee with three years' service is dismissed for persistent lateness. The manager sends a dismissal letter without investigation, warning or hearing. The reason, conduct, can be fair, and the employee has qualifying service. But the procedure is unreasonable: no investigation, no opportunity to explain, no warning and no hearing. The dismissal is likely unfair. Because no notice was paid, it is also wrongful dismissal. The employee can claim unfair dismissal and breach of contract.

Traps that cost marks

Do not confuse unfair and wrongful dismissal. Do not ignore the two-year qualifying period, but remember automatically unfair reasons. Do not treat all discrimination as requiring intent. Do not say redundancy is unfair just because the role is redundant; the process and selection must be fair. Do not call a worker an employee without checking control, personal service and mutuality.