Employment Laws


Contracts of Employment and Minimum Wage

Contracts of Employment

  • Written within two months of starting work
    • Employment rights act 1996
  • Given a copy of the firm's discipline procedure
    • Employment act 2002
    • Which offences lead to a warning or a dismissal
  • Working time regulations
    • 1998 Introduced
    • 48 Hours per week

National Minimum Wage

  • Depending of the age
  • Increased every 1st October
  • Increases costs for firms and can lead to increased prices
  • Better motivated staff and increased productivity
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Discrimination and Leaving

  • Equality Act 2010
    • Recruitment procedures must not descriminate against:
      • Sex + Sexual orientation
      • Ethnic minorities
      • Age
      • Religion
      • Disability
    • Equal opportunities
      • Women and men paid the same for the same job with the same employer
      • Same pay for work of equal value
  • Employment Act 2002
    • Against unfair dismisall. Can only be dismissed if incapable of doing job:
      • Incompetent
      • Gross misconduct
    • Only made redundant if their job no longer exists:
      • Drop in demand/automation
      • Cannot readvertise redundant jobs
    • Unfairly dissmissed appeal to an empoyment tribunal
      • Award compensation or reinstate employee
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Health and Safety

Designed to make sure risks to people at work are properly controlled. Fewer accidents hence fewer injuries- more productive workforce, as less time off to recover from injuries.

  • 1961 Factories Act
    • Minimum requirements e.g Toilets, washing facilities, lighting, fire escapes
  • Health and safety at work act of 1974
    • Employers and employees take responsibility for health and safety
  • 1992 Workplace Regulations
    • EU rules e.g. safe use of computers

Things firms must do (if the do not comply they might be prosecuted, fined or closed down):

  • Carry out risk assessments to identify possible dangers
  • Then take reasonable steps to reduce risks
  • Accident books kept and first-aiders trained
  • All staff must receive health and safety training
  • Health and safety equipment provided
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New Parents

  • 39 weeks of paid maternity leave - not usually her full salary
  • Up to 2 weeks paternity leave
  • Somebody else must do their work
    • Existing staff
      • Saves money on extra wages
      • Less time to concentrate on usual tasks- reduce productivity
    • Extra staff
      • Short term contract
      • Increases cost
        • Extra worker's wages
        • Parent's paid leave
  • Expensive and leaves a gap in the workforce
  • Parents more likely to return to work if firm is supportive
    • Saves money on recruiting and training new employees
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