2.5 Legislation

Question 1

Employment law.

Answer 1

National minimum wage: minimum wage given to employees dependent on age and apprentices.
National living wage: minimum wage payable to workers over 21.
Equality Act (2010): protects people from discrimination in the workplace and wider society.

Question 2

Health and safety law.

Answer 2

Health and safety at work act (1974): sets out framework to ensure health, safety and welfare of workers.

Question 3

Consumers law.

Answer 3

Trade descriptions: protects customers from misleading or false information about products.

Question 4

Impact of legislation on businesses.

Answer 4

• Higher costs (e.g. higher minimum wage, machinery inspections, refunds and damaged products).
• Training needs (e.g. frequent on machinery/equipment usage, make less mistakes to reduce refunds and mistakes).
• Recruitment (e.g. avoid discrimination)

Question 5

Consequences of not following legislation.

Answer 5

• Fined through fees and compensation.
• Bad publicity leads to loss of sales and staff.
• Other stakeholders may be reluctant to associate with business, making operating the business harder.
• Business may be shut down, in drastic cases.