Legal Controls over Employment (Edexcel IGCSE Business)

• Legal controls are the laws and regulations passed by governments that require businesses to conduct their behaviour in a particular manner
  
  
• Many countries have passed laws and introduced regulations that affect the relationship between employers and employees and relate to aspects including
  
  • Pay
  • Hours and conditions of work
  • Safety
  • Discrimination
  • Rights to paid and unpaid absence e.g. holiday
  • Dismissal
    
    
• The main aim of employment law is to protect and prevent exploitation of workers

• Equal opportunities means that all individuals should be treated equitably, regardless of protected characteristics such as gender, race, religion and disability
  
  
• Many countries have introduced laws preventing discrimination in the workplace
  • E.g. France's discrimination laws identify a range of protected characteristics that cannot be discriminated against including sexual orientation, gender identity, age, pregnancy, trade union activities and physical appearance 
    
    
• Businesses must comply with equal opportunities legislation to prevent discrimination from occurring in the workplace
  
  
• Discrimination at work is when the employer makes decisions that are based on ‘unfair’ reasons
  • In most countries many of these forms of discrimination are illegal
    
  • Workers who have suffered discrimination can take legal action against an employer
    
    

Diagram: The main Forms of Discrimination

If an employee has suffered discrimination at work they can take legal action against their employer

Benefits of Complying with Employment Laws

• A business which follows and encourages an equal opportunities policy can help 
  • Improve it's reputation
  • Keep employees happy and motivated
  • Prevent serious or legal issues arising, such as bullying, harassment and discrimination
  • Better serve a diverse range of customers
  • Improve ideas and problem-solving
  • Attract and keep good staff

• A minimum wage is the lowest wage permitted by law
  
  
• Some countries may have a very complicated minimum wage system
• India has hundreds of minimum wage rates for different types of industries, geographical regions and skill levels
  
  

• Other countries set a minimum hourly, weekly or monthly wage level for all citizens
• In 2022 Belgium’s minimum wage rate was €1,691 (US$ 2,000) per month
• In Estonia the minimum wage in 2023 was €4.30 (US$ 5.09) per hour
• Countries including Ireland and the UK set different minimum wage rates according to age

• There remain some countries without minimum wage laws
  • In Finland there is no minimum wage but all employers must pay minimum rates agreed in collective bargaining agreements
  • The United Arab Emirates has no minimum wage requirements
    
    
• The implementation of a minimum wage can have many consequences for both employers and employees
  • The main effect for the business is the likelihood of an increase in costs
    
    

Impacts of Implementing a National Minimum Wage