Legal Controls over Employment (Edexcel IGCSE Business)

An Introduction to Legal Controls over Employment

• 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

• 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

Minimum Wage Laws

• 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