Legal Controls over Employment (Edexcel IGCSE Business)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
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
Examiner Tips and Tricks
You do not need to know specific examples of legislation from different countries for the exam. The extracts in the exam paper will clearly define what laws are in place in a given country e.g. equal opportunities legislation. Make sure that you understand the purpose of the legislation, in other words, what are the legal controls tying to do. Remember, the main aim is to prevent the exploitation of workers!
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
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