iGCSE Business Studies 2.3.4 Legal controls over employment issues and their impact on employers and employees

Learning Outcomes An understanding of legal controls over: - Employment Contracts -Discrimination -Unfair Dismissal -Legal minimum wage -Health and Safety An understanding of how these laws may impact on employees and employers

Contracts of Employment – A legal Entitlement

What is a contract of employment? All employees have an employment contract with their employer. A contract is an agreement that sets out an employee’s: employment conditions rights responsibilities duties Employees and employers must stick to a contract until it ends or until the terms are changed. Employees must receive a written contract of employment within the first 2 months

Task… Read the example Contract of Employment. What are the key areas it covers?

What’s included by law… the business’s name the employee’s name, job title or a description of work and start date how much and how often an employee will get paid hours of work (and if employees will have to work (and if that includes public holidays) where an employee will be working the end date of a fixed-term contract notice periods pensions who to go to with a grievance how to complain about how a grievance is handled how to complain about a disciplinary or dismissal decision sick pay and procedures disciplinary and dismissal procedures grievance procedures

Legislation – Working Conditions

Group Task – 10 minutes Imagine you are working for the UK government… National Minimum Wage Maternity Leave/Pay Paternity Pay Working Hours Sick Pay Imagine you are working for the UK government… Write a statement outlining what you think would be a fair policy in the following areas of Employment Law

Working Hours

Working Time Directive 1998 Designed to protect employees from a requirement to work excessive hours, the WTD provides workers with the following statutory rights: four weeks' paid annual leave a limit on average weekly working time to 48 hours (although this can be averaged out over 4 months and there are some exemptions) rest break after 6 consecutive hours of work 11 hours' rest between working shifts at least a day's rest per week a limit on night workers' average daily working time to 8 hours

Minimum Wage

The minimum wage The NMW rates are reviewed each year by the Low Pay Commission and from 1 October 2011: the main rate for workers aged 21 and over will increase to £6.08 the 18-20 rate will increase to £4.98 the 16-17 rate for workers above school leaving age but under 18 will increase to £3.68  the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship will increase to £2.60

What point is this cartoon trying to make?

Maternity Rights

Maternity Rights Pregnant employees have four key rights: paid time off for antenatal care maternity leave maternity pay benefits protection against unfair treatment or dismissal Maternity Pay: for the first six weeks at 90 per cent of average gross weekly earnings for the remaining 33 weeks at the lower of either the standard rate of £128.73, or 90 per cent of average gross weekly earnings (which ever is lower)

Paternity Rights

Paternity Rights Ordinary Statutory Paternity Pay is paid for up to two consecutive weeks, depending on how long you choose to take Ordinary Paternity Leave for. The current weekly rate is £124.88 (£128.73 from April 2011) or 90 per cent of average weekly earnings, if that is less. As of April 2011, fathers may qualify to take an additional 26 weeks of paternity leave if their partner has gone back to work

Sick Pay

Statutory Sick Pay Nothing for the first 4 days After this you can claim statutory sick pay for 28 weeks The rate is currently £81.60 per week

Legislation - Equal Opportunities (Anti Discrimination Laws)

What is discrimination? Discrimination: When an employer treats one employee less favourably than others Which groups of workers do you think anti-discrimination laws might be aiming to protect?

Equal opportunities legislation Aims to give all people identical rights and opportunities regardless of: Gender - Equal Pay Act 1970 Marital status/pregnancy - Equal Pay Act 1970 Race - Race Relations Act 1976 Physical disability - Disability Discrimination Act 1995 Age - Employment Equality (Age) Regulations 2006 Religion or belief - Employment Equality (Religion or Belief) Regulations 2003 Sexual orientation - Employment Equality (Sexual Orientation) Regulations 2003

When does it apply? In general it is illegal for an employer to discriminate on any of these grounds in: selection training and development pay and conditions selection for redundancy

Employment Legislation - Dismissal

Task Cast your mind back to when we looked at the difference between dismissal and redundancy. In what circumstances can a business end an employers contract LAWFULLY?

Fair dismissal Fair Dismissal can take place when grounds can be shown such as; Gross Misconduct – e.g. dishonesty, negligence. Incompetence – e.g. inability to do the job, poor time keeping (written warnings should be given). Where continued employment would break the law When a contract comes to its end Redundancy

Employment Legislation – Health and Safety

Question…. How might a work place pose a threat to an employee’s health? Think of as many potential dangers as you can Watch this retro health and safety video for some ideas

Questions: What can businesses do to reduce the risk to the health and safety of their employees? Write a list Identify which of your ideas businesses should be made to do by law.

Health and Safety Legislation Requirements… a written statement covering the organisation's policy on health and safety. the workplace must be made safe and pose no risk to the health of employees. employers must give employees the information, instruction, training and supervision necessary employees must cooperate All employees from directors to shop floor workers are responsible for the implementation of policy.

Health and Safety at Work Act, 1974 The basis of health and safety law is the Health and Safety at Work Act 1974: Both the employer and the employee have a responsibility to keep the workplace safe Employers must take all reasonable steps to ensure the health, safety and welfare of all employees Employees must take reasonable care to look after their own safety and the safety of others

Other Health and Safety Legislation (1/3) Other Health and Safety Legislation Management of Health and Safety at Work Regulations 1999: Require employers to carry out risk assessments Workplace (Health, Safety and Welfare) Regulations 1992: Cover a wide range of basic health, safety and welfare issues such as ventilation, heating, lighting, workstations, seating and welfare facilities Health and Safety (Display Screen Equipment) Regulations 1992: Set out requirements for work with Visual Display Units (VDUs) Personal Protective Equipment at Work Regulations 1992: Require employers to provide appropriate protective clothing and equipment for their employees * © easilyinteractive.com 2006-10

Health and Safety Legislation (2/3) Health and Safety Legislation Provision and Use of Work Equipment Regulations 1998: Require that equipment provided for use at work, including machinery, is safe Manual Handling Operations Regulations 1992: Cover the moving of objects by hand or bodily force Health and Safety (First Aid) Regulations 1981: Cover requirements for first aid The Health and Safety Information for Employees Regulations 1989: Require employers to display a poster telling employees what they need to know about health and safety * © easilyinteractive.com 2006-10

Health and Safety Legislation (3/3) Health and Safety Legislation Employers’ Liability (Compulsory Insurance) Act 1969: Require employers to take out insurance against accidents and ill health to their employees Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR): Require employers to notify the HSE of certain occupational injuries, diseases and dangerous events Noise at Work Regulations 1989: Require employers to take action to protect employees from hearing damage Control of Substances Hazardous to Health Regulations 2002 (COSHH): Require employers to assess the risks from hazardous substances and take appropriate precautions * © easilyinteractive.com 2006-10

Task What are the benefits and drawbacks of Health and Safety Legislation for Businesses?

Health and Safety Legislation discussion There has been recent criticism about ‘health and safety gone mad’ Examples… Has health and safety legislation gone too far, or are employees and members of the public in need of protection from cost-cutting companies? Photo by Neal Gardner Photo by Jussi Mantere

Task – Timed Exam Question You will have 23 minutes to answer the Paper 1 Style question on employment legislation