influences on business - legislation Flashcards
What is employment law?
The rules and regulations that concern the relationship between employers and employees in the workplace.
What are the two aspects of employment law?
- National minimum/living wage
* Equality Act
When was the Equality Act introduced?
2010
Who gets paid the National Minimum Wage?
Workers aged 24 and under.
Who gets paid the National Living Wage?
Workers aged 25 and over.
Which is higher - the National Minimum or Living Wage?
National Living Wage.
Give 2 potential things that could happen if the business doesn’t comply with the National Minimum/Living Wage.
- Given large fines/go to court
- Gain a bad reputation
- May lose customer
How can National Minimum/Living Wage affect a firm’s income?
Increases costs, which reduces profits.
How can National Minimum/Living Wage benefit a company?
Can lead to better motivited staff and increased productivity.
When was the National Minimum Wage Act introduced?
1998
What does the Equality Act prevent employers from doing?
Discriminating against anyone becuase of a protected characteristic (e.g. age, disability, pregnancy, race, religion, gender, sexual orientation).
Why does the implementation of the Equality incur extra costs to a business?
They have to conduct employee training to educate workers.
When was the Health and Safety at Work Act introduced?
1974
What do businesses need to do to avoid breaching the Health and Safety at Work Act?
Carry out risk assessments and take reasonable steps to reduce the risk.
How can a safe working environment reduce costs?
Fewer accidents so employees have less time off work.
What legal implications could there be if the business ignores the Health and Safety at Work Act?
Prosecution, fines and even closing down.
What is the aim of consumer law?
To protect the consumer from being exploited by the business.
When was the Consumer Rights Act introduced?
2015
What are the 3 components of the Consumer Rights Act?
- The product should be fit for purpose
- The product should match its description
- The product should be of satisfactory quality
Give 2 advantages of consumer protection.
- Better reputation
- More customers due to confidence in the product
- Reduces the risk of UK products being undercut by poorly made products from abroad
Give 2 disadvantages of consumer protecytion.
- Increased cost
- Increases liklihood of legal action
- Have to train staff so they understand customers’ rights
What happens if the firm breaks consumer law?
It is faced with the cost an inconvenience of having to refund, repair or replace the customer’s item.
