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List three key points of legislation that affect employees in a business environment
External Environment: Business & Legislation - Introduction Legislation The way in which a business can operate is controlled by legislation. Laws can be imposed by the UK or European Union courts and government. [ Legislation mainly acts as a constraint on business. The main areas of legislation that affect businesses are: Employment law Consumer protection Competition law Employment
law This is aimed at protecting the health, safety and rights of employees The main employment laws that a business needs to consider are: Health and Safety at Work Act 1974 Employers must provide safe premises and machinery. They must ensure that workers health is not affected by their work. The key costs and benefits of the Health and Safety at Work Act for a business are: - Adds to costs to businesses that need to train staff and spend money maintaining the standards set out. - BUT may reduce cost in the long term because of a reduction in staff absences and not having to pay compensation for injuries. - Good health and safety record is a good way of encouraging recruitment of good workers. Equal Pay Act 1970 Employees who do equal work or work of equal value must receive the same pay as workers of the other sex. Sex Discrimination Act 1975 Employees cannot be sexually discriminated in employment, training or recruitment. Race Relations Act 1976 It is illegal to discriminate against someone on the basis of race, ethnic group or colour. Employment Protection Act 1978 Employees must be given a written contract of employment. It protects against unfair dismissal (without good cause) and says that redundancy pay must be paid if the worker has served more than two years and their job is to be abolished. Employment law imposes additional costs to the business because they have to spend additional money on training, recruitment and pay. Like the Health and Safety Act there are also benefits if the workers feel they are treated fairly and there is more security, they will be more motivated. Consumer Protection This is aimed at making sure that businesses act fairly towards their consumers – especially since consumers are sometimes in a much weaker financial position. ]
Expert answered|jeffreymcmillan|Points 60|
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