James is a bus driver, he often drives school children as part of his duties. His Facebook page often reveals his 'weekend' driving of motorbikes and other vehicles very fast and in an apparently dangerous manner. He also have pictures of drugs and drug usage on his Facebook page.

The bus company has a drug and alcohol policy which clearly states that bus drivers must not drink or be affected by alcohol or drugs while on duty. It includes advice that drug testing may occur.

One day James has an accident when he failed to stop in time and hit the car in front. He was drug tested. The drug test revealed he had cannabis (an illegal drug) in his system. He confirmed that he has smoked a small amount of cannabis on Sunday afternoon (16 hours before the accident).

1.Outline and explain the activity that the bus company must do to ensure a 'lawful' termination of James' employment. (Include legislation and case law)