A contract between employer and the employee has an Inequality of bargaining power since the employer holds more power to influence the position of the contract.3 The inequality of bargaining power between the employer and the employee necessitates the need for an employment contract to impose the terms of employment and where necessary use it in court to enforce the employment terms. This paper examines legal issues between employees and the employers in the case study of Accounting for Small Business (AFSB) Company.Raj had worked for the AFSB for three years and had an excellent work record during that period. He came into conflict with Sarah for attending his work late by twenty minutes. Just in the previous day Sarah had expressed her concern for employees’ lateness and issued warning against anyone who would be late for work. She had informed the workers that anyone would be late for the work would be given an extra task to perform even though she did not specify the nature of the task that would be given for lateness. When Raj arrived late one morning he apologized for lateness and explained his cause for lateness to Sarah but she was not ready to listen to any excuse. She informed Raj that he was to clean all the office desks that evening after his day job. However, Raj objected strongly using offensive language and asked Sarah to get the other cleaners to do the cleaning. He informed her that he could not take orders from her since she did not have authority over him. The conflict between Raj and Sarah led the managing director to convene a disciplinary meeting with Raj in which he informed Raj of his express dismissal for disobeying the lawful instructions and gross misconducts to the standard procedure.The employment act allows employers to vary the culture of the business in accordance with the changes in market requirement as long as the changes initiateddoes not contravene the employment contract with the employees.