2.5 - Legislation

Who are business laws put in place by?

The government in the form of Acts of Parliament

Why are business laws put in place?

To stop bsuinesses from mistreating and exploiting their workers and consumers

What are the 3 types of law that apply to businesses?q

- Health and safety law
- Consumer law
- Employment law

What are the advnatages of employment law on a business?

- Imrpovement in motivation
- Greater productibity
- Lass absenteeism (employees being absent)
- Fewer mistakes
- Fewer accidents
- Higher quality products
- Improved reputation
- Higher sales and revenues

What is the disadvantage of employment law on a business?

Increases the costs of production

What is the national minimum wage? (description)

THe UK government has made sure that workers are paid a fair wage by making it illegal for businesses to pay workers less than a specific amount

The wage varies according to the age of the worker

What is the National Living Wage?

The 25+ rate for the National Minimum Wage

What are the advantages to a business of the National Minimum Wage?

- People have more disposable income to spend on a business - sales increase
- Workers are more motivated to work for higher wages

What are the disadvantages to a business of the National Minimum Wage?

- Increased costs of production (reduced profits)
- Can't afford to employ as many people (have to make people redundant)
- If they break the law, they have to pay back their owed money and susbtantial fines

What does the Equality Act 2010 do?

Legally protects peopel from discimination in the woorkplace and in wider society

What is discrimination?

The illegal tratement of any individual/group of individuals who are termed to be different

In the UK , it is unacceptable for...

An employer to discriminate against an employee on this basis

What is legislation?

A set of rues that governs the way society operates (antoher term for 'laws')

What is the National Living Wage?

An hourly rate of pay which is set by the government

Alll employees above a certain age must receive at least this rate of pay

What is the aim of legislation?

To strike a balance in the workplace between the rights of employers and the right of emmployees

Aim is to allow employers to use labour efficiently while preventing the unfair tratement of employees

What does consumer protection law do?

Provents businesses treating their customers unfairly, while allowing them to sell goods and services profitably

What is an Act of Parliament?

When a law comes into operation

What is discrimination? (define)

Treating one person differently from another without having good reasons to do so

What is a part-time employee?

Works for a proportion of the working week (eg. 3/5 days a week)

What is a trade union?

A group of workers who act together to imrpove their pay and working conditions

What is a contract of employemnt?

A legal document stating the hours, rates of pay, duties and other conditions under which a person is emplyoed

What is motivation?

Refers to the range of factors which influence the way a person behaves at work

What are consumer laws?

Laws that have been introduced to prevent businesses from treating their customers unfairly

The Equality Act 2010 says that employees can't be treated differently in the workplace on the basis of any of the following factors?

- Age
- Disability
- Race
- Gender reassignment
- Marraige and civil partnership
- Religion/belief
- Pregnancy/maternity
- Gender
- Sexual orientation

In 2010, the Equality act brought together all legislation...

intended to stop discrimination

What are the types of discrimination?

- Age
- Disability
- Race
- Trade union members
- Gender reassignment
- Marriage/civil partnership
- Religion/belief
- Pregnancy/maternity
- Gender
- Sexual orientation
- Fixed-term/part-time worker

What are the ways in which businesses discriminate?

- Uneven pay
- Recruitment
- Employee contract
- Promotions & transfers
- Providing training
- Providign benefits
- Employee dismissal

What are the advantages and disadvantages of maternity/paternity leave on a business?

- Workers are motivated, imporving performance
- Avoiding legal fees

- Have to pay 2 full wages (1 for the maternity leave, 1 for the person to cover their shifts)
- Potential legal fees if they break the legislation

What are some other employment laws?

- All pregnant employees are entitled to 52 weeks' leave - business can reclaim most of the pay from the government
- All employees have a legal right to a paid holiday (5.6 weeks)
- Working hours are subject to legal limits
- Employees have a right to choose whether or not to join a trade union
- Employees must have a contract of employment - state amount they need to be paid
- Time off for a range of reasons (trade union activities and bc a dependent person is ill)

What does the Health and Safety at Work Act 1974 cover?

"employers must ""ensure that they safeguard all their employees' health, safety and welfare at work""

- installation and maintenance of safety equipment
- maintenance of workplace temperature
- sufficient breaks
- protection against dangerous substances
- safety policy
- employees follow all H&S procedures"

How can businesses treat their customers unfairly?

- By selling goods and services that aren't as described (eg. incorrect quantities)
- By selling unsafe products
- Selling products that don't work properly/unfair prices
- Selling info abt consumers to other businesses without permission

Why are consumer laws passed by the government?

To protect customers by preventing unfair practices taking place (consumer protection laws)

What does the consumer rights act 2015 cover?

"- Product quality
- Returning goods (protects against products ""going missing"" before delivery, late delivery)
- Repairs/replacements
- Delivery rights
- unfair terms in contracts between businesses and customers (eg. hidden fees and charges)"

Diagram of consumer laws

What is the legislation concerning the labelling of products?

- Labelling of food regulations (ingredients on label)
- Weight and measures act
- consumer protection from unfair trading regulations act (illegal to give consumers incorrect information on packaging and labels + agressive selling tactics)

What is the legislation of buying products using laws?

- Stops businesses charging very high rates of interest to consumers if they take out a loan when buying expensive products
- Allows consumers a week during which they have the right to change their minds about agreeing to a loan

What acts concern using information incorrectly?

- Compuer misuse act (prevents ppl looking at info on computers they have no right to read)
- Data protection act (controls the ues of consumers' information - prevents theft/loss/selling/giving without consent of data)

Which legilsation concerns the safety of products?

- Food act (things can can/can't be added to food products, make/sell food in unclean buildings)
- Consumer protection act (law prevents firms from selling dangerous products to consumers - liability if they do)
- Food safety act (illegal to sell food that's unsafe and may cause illness)

What are the advnatages and disadvnatages of consumer laws to a business?

Advantages
- Consumers more willing to make decisions to buy expensive products
- Not as concerned to buy products about which they know little (and rely on the business) - higher sales
- Encourage businesses to produce safe, fit for purpose, as described foods - rivals are limited in smae ways (level playing field)


Disadvnatages
- Increased costs of production
- Prevents businesses from finding extra sources of revenue (eg. thorough selling customer data)

What are the Consequences of meeting legal obligations?

"- Business gains a good reputation for reliable and trustworthy products. As this reputation grows, sales are likely to increase, as more customers are attracted.
- Staff will feel more confident that they will be safe at work and that their employer takes its responsibilities seriously. This can bring a number of benefits:

What are the consequences of not meeting legal obligations?

Explain one example of how a business would meet he requirements of consumer law to provide safe goods/services

1 mark for identifying the requirements of consumer law in relation to providing safe goods or services.

1 mark for giving an example or how it would be achieved.

Possible answers may include: 

•   goods must be as described

•   labelling of products

•   products must work properly

•   products must be safe to use/consume

Examples of developed answers 

Consumer law states goods must be labelled correctly, (1) for example businesses need to state what ingredients are in food products (1).

Business must make sure that products are safe to use (1) for example any electrical products must be tested (1).

1. Equality act

   Health and safety act

2. Minimum wage, holiday pay, maternity pay, safety equipment, recruitment costs

D

Okay 😋