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The impact of legislation on businesses - EduqasEmployment Law

The government use legislation to regulate businesses鈥 behaviour and prevent them from exploiting people. Laws protect consumers who buy from businesses and workers employed by businesses.

Part of BusinessInfluences on business

Employment Law

The term 鈥榚mployment law鈥 refers to any piece of designed to protect employees from . In the UK, there are a number of areas of employment legislation that form the basis of employee rights in the workplace, such as:

  • Recruitment 鈥 this legislation outlines what employers can and cannot do when recruiting staff and what their responsibilities are once a job offer has been made. It also states that employees must be provided with a contract of employment.
  • Pay 鈥 this legislation covers pay and is designed to ensure that the pay workers receive is above a set minimum level.
  • 鈥 this area of employment law is designed to ensure that employers treat all people fairly.
  • Working conditions 鈥 employees must be provided with safe working conditions and an ideal working environment to keep employees safe at work, they must also be protected against .
Elements of employment law: Recruitment, discrimination, pay, health and safety.

Recruitment

Recruitment must be fair in business and provide all applicants with a fair chance at getting a job role. New employees must be provided with a contract of employment within two months of starting a job role. An employment contract includes details such as:

  • payment
  • holidays
  • duties
  • responsibilities
  • notice period
  • any additional terms of employment

Pay

Under the National Minimum Wage Act (1998), all businesses must pay their staff a minimum hourly rate. There is no exemption for small employers or discounts for geographical areas. The aim is to increase the incomes of the low paid. The rates are set each year by the government.

For people aged 16 to 24, this is called the national minimum wage. It varies according to different categories (under 18, 18-20, 21-22 and apprenticeships).

For people aged 23 or over, it is called the national living wage.

Discrimination

The Equality Act (2010) is designed to prevent on a number of grounds. These grounds are called 鈥榩rotected characteristics鈥. The Equality Act (2010) makes it illegal for a business to pay people different rates of pay if they are doing the same job or similar jobs. This means, for example, that a business cannot pay a male member of staff more than a female member of staff if they are employed in the same role.

Protected characteristics include race and ethnicity, disability, religion or belief, age, sexual orientation, sex, gender reassignement, pregnancy and maternity, marriage and civil partnerships.

Visual to show the  nine characteristics protected by the Equality Act.

Working conditions

Working conditions need to be safe and fair for all employees. This relates to the physical working environment, health and safety policies, protecting employees from unfair dismissal and the contractual conditions employees have. Working environment could relate to employees being provided with desks at the right height, adjustable chairs and the correct levels of lighting.

Health and Safety policies are put in place to conform with the Health and Safety at Work Act (1974). This outlines the responsibilities that both employers and employees have in keeping the working environment safe. This includes areas such as:

  • staff training
  • safety equipment, including tools and clothing where appropriate
  • drinking water
  • toilets and suitable washing facilities
  • first aid equipment

Protecting employees from considers the reasons for employees leaving a business. An employee must only lose their job for a good reason, or because they decide to leave a business. An employee can be terminated from their role for severe or repeated . An employee could also be made if a business needs to cut costs or a role no longer exists. If an employee is dismissed unfairly, they may take a business to court.

Contractual conditions considers, for example, protecting employees from unfair dismissal. This occurs where an employee is either forced out of the business or quits due to an issue caused by the business.

Employers must follow the Working Time Regulations (1998, amended 2003), these place limits on the number of hours that employers can expect staff to work. They also specify the breaks employees are entitled to. The regulations ensure that staff:

  • can only be asked to work, on average, up to 48 hours per week
  • are entitled to a minimum of 5.6 weeks鈥 holidays per year
  • have a minimum of one day off each week
  • have at least 11 consecutive hours off in every 24-hour period
  • take a 20-minute break when working more than six hours