Business law Essay Example | Topics and Well Written Essays - 750 words - 1

Business law - Essay Example In essence, this plan draws funding from the employers of the employees registered under the plan where they pay premiums of up to a hundred and two percent (Andersen, Rice & Kominski 2011). Therefore, this health plan serves as a temporary reprieve for employees to continue accessing health care until they find another avenue for paying their premiums in the event that any of the above occurs. However, as much as the plan is the right of the employees, it is a mandatory that they make prior notification so as to make the act work for them (Andersen, Rice & Kominski 2011). In this regard, Fran’s Fries is a community located eatery that serves a greater fraction of the community. In essence, the eating joint’s location is on the central part of town where heavy trading and interaction occurs. Fran’s Fries boasts of matching up to big names like Mc Donald and Steers because of the level of service and products on offer. Sequentially, the brains behind this strategi cally placed is Fran who couples as the joint’s owner and manager. Fran has vast experience in the hospitality industry because of previous work engagements with a number of five star hotels. Therefore, the business is one that draws success from passion and remarkable inter employee relationship. Fran’s Fries has created employment for twenty employees who work in the kitchen and also in the front service. Before the economic recession of 2008, the business entity was at the top of the fast food market in the region, which necessitated the need for the management to make their employees live with comfort. According to Fran, business took a turn for the worse when the recession occurred as many of the eatery’s consumers lost their jobs and others opted to carry light foods from their homes rather than eat take-outs. Essentially, fast foods led to the popularity of the eating joint where management also incorporated health care plans for their employees and their families. Moreover, the COBRA policy also followed suit to which the manager did not foresee the occurring of the event. With the recession in sight, Fran had to lay off some workers periodically because the profits realized could not sustain the entire work force. In this regard, the challenge of having to pay for the premiums of the laid off employees faced the business the profit generation was not sufficient for the cause. Therefore, Fran had to battle with ensuring that the business stays afloat and also ensuring that the business complies with the COBRA act. Lucky for the business, they took up a policy that allowed the business to only pay the extended premiums for employees for a period not exceeding four months. However, the manager says that this was also strenuous for the business as the laying off occurred in phases rather than in one stride. This made the incurrence of loses a part of the business until the time that the business stopped the process. By the time the re cession was over, the business owner says that the business had slashed the work force by half, which almost brought Fran’s Fries to the knees. However, Fran insists that the employees that lost their work at Fran’s Fries benefitted from the COBRA policy because four months was enough time for them to find other means of maneuvering. For Fran, the process of ensuring that Fran’s Fries did not crumble was a humbling experience because the business learnt how to survive on