Unit 1 - People In Business (legislation) Flashcards
Explain the key features of the National Minimum Wage 1998
This came into force on 1 April (April fool’s day) 1999. Key Features were:
- a general minimum hourly wage
- a separate minimum hourly rate for 16-17 year olds and 18-21 year olds
- those on piece-rate pay must receive at least the minimum wage
- all part-time and temporary workers must be paid the minimum wage
Minimum wage rates are increased in October each year.
What is meant by minimum wage?
The minimum wage is the lowest hourly rate that an employer can legally pay an employee.
What is meant by Piece-rate pay?
Piece-rate pay (or piecemeal) is a system under which employees are paid a fixed amount for each unit of output that is produced.
For example, apple pickets may be paid £4 for each box of apples they pick.
What are the current National Minimum Rates?
21 and over - £6.70
18 to 20 - £5.30
Under 18 - £3.87
Apprentice - £3.30
What is meant by Equal Pay Act?
This law states that businesses must treat employees of both sexes equally.
It applies to pay, pensions, bonuses and non monetary issues such as length of holidays.
The law says that a woman doing the same job as a man must receive the same pay and have the same working conditions.
What does the national minimum wage and equal pay act mean for UK based small businesses?
It means that the cost of production has increased as wages/salaries are higher than they may be without these laws.
It means that small businesses will employ fewer people and in unskilled work they are more likely to get machines to replace them.
In other countries without such legislation (eg China) production costs are lower because there is no minimum wage or equal pay.
What is meant by discrimination?
Discrimination is treating one person differently from another without having a good reason to do so.
What areas of discrimination apply in England?
- Sex Discrimination - employers should not treat people less favourably because of their sex.
- Race Discrimination - employers should not treat people less favourably because of their race or colour
- Disability Discrimination - employers should not treat people less favourably because of someone’s disability
- Age Discrimination - employers should not treat people less favourably because of their age.
What do discrimination laws mean for small businesses!
This legislation affects all areas of employment including:
- recruitment
- promotions and transfers
- training
- pay and monetary and non-monetary benefits
- dismissals
It means employees must be treated equally regardless of age, sex, gender, race and disability.
Failure to comply with discrimination laws can result in employers facing potentially expensive claims in the employment tribunal.
Give some examples of how employment law may impact upon businesses
- An employee who has been employed for 2 years can only be fired on certain grounds.
- All female employees are entitled to 52 weeks maternity leave at the time of the birth of their child. Employers must pay certain amount tithe employee but can claim a lot of it back from the government.
- All employees have the right to 28 days paid annual leave.
- Employees have a right not to work for more than 48 hours a week (on average) unless they have signed an opt out agreement.
What is a trade union?
A trade union is a group of workers who act together to improve their pay and working conditions
What is a contract of employment?
A contract of employment is a legal document stating the hours, rates of pay, duties and other conditions under which an employee is employed.
What do these employment laws mean for small businesses?
Right to 52 weeks maternity leave - whilst the small business can reclaim much of this it still has to pay it out.
They will also need to recruit and train Replacement employee.
However, the good points are that staff will be more motivated if they have more flexibility and the right to paid holiday. It encourages employers to take time off and come back refreshed.
Explain how Heath and safety law may affect businesses?
The Heath and Safety Act states that employers must ensure that they safeguard all of their employees health, safety and welfare at work. This covers:
SAFETY EQUIPMENT - installation/maintenance
MAINTAINING workplace temperatures
EMPLOYEE BREAKS - giving sufficient breaks
PROTECTION -against dangerous substances
FITTING GUARDS to dangerous machines
WRITING AND DISPLAYING a safety policy
Who oversees health and safety in the workplace?
Health and Safety Executive (HSE) oversees the operation of the Act and carries out inspections of business premises.
They also carries out investigations following serious accidents in the workplace and they can also prosecute companies for serious breaches of health and safety law.
