1.5.3

Legislation & Business

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Employment Law

Employment law deals with the laws that gives standards about how businesses should treat their employees.

National minimum wage/living wage

National minimum wage/living wage

  • This law states the minimum amount that businesses can pay their staff. The amount depends on the age of the worker and the type of work.
  • If the minimum wage increases then it can lead to an increase in costs and because of this, lower profits.
  • Paying workers a higher wage may improve motivation and productivity.
Different countries

Different countries

  • Different national minimum wages mean that it is more expensive for companies to produce in some countries relative to others.
  • The UK has a much higher average minimum wage (about $11 per hour) than Vietnam or China (about $3 per hour) and this means it is much cheaper for firms based in China to produce products.
  • This may mean that some UK manufacturing businesses that need a lot of labour are not competitive on price.
The Equality Act (2010)

The Equality Act (2010)

  • This protects all people from discrimination in the workplace. It means businesses cannot discriminate in terms of pay and employment opportunities based on someone’s religion, race, gender, age, sexual orientation or disabilities.
  • This creates a working environment where everybody feels welcome. Sometimes this is called an inclusive workforce.

Health and Safety Law

The Health and Safety at Work Act (1974) places a duty (responsibility) on businesses to make sure that the health and safety of their employees is properly managed.

Risk assessments

Risk assessments

  • Firms need to do risk assessments and take steps to make sure that potential risks at work are minimised.
Health and safety conditions

Health and safety conditions

  • Better health and safety conditions do provide a benefit by reducing the number of workplace injuries. This means that workers will spend less time off work recovering from injury and will spend more time at work.
Impact on businesses

Impact on businesses

  • There are certain costs involved with making sure a business meets health and safety standards.
    • For example, making sure all staff undergo health and safety training or wear protective clothing like safety visors and ear plugs are all likely to lead to extra costs.
Jump to other topics
1

Investigating Small Business

1.1

Enterprise & Entrepreneurship

1.1.1The Dynamic Nature of Businesses1.1.2Risk & Reward1.1.3The Role of Business Enterprise1.1.4The Role of Business Enterprise 21.1.5The Role of the Entrepreneur1.1.6End of Topic Test - Dynamic Nature of Business1.1.7Grade 9 - Dynamic Nature of Business
1.2

Spotting a Business Opportunity

1.2.1Customer Needs1.2.2Market Research1.2.3Market Segmentation1.2.4The Competitive Environment1.2.5Primary & Secondary Market Research1.2.6End of Topic Test - Business Opportunities1.2.7Application Questions - Business Opportunities1.2.8Exam-Style Questions - Market Segmentation1.2.9Diagnostic Misconceptions - Competition
1.3

Putting a Business Idea into Practice

1.3.1Business Aims1.3.2Business Objectives1.3.3Business Revenues & Costs1.3.4Costs - Calculations1.3.5Revenue - Calculations1.3.6Business Profits & Break-Even Analysis1.3.7Profits & Losses - Calculations1.3.8Interest - Calculations1.3.9Cash & Cash Flow1.3.10Cash & Cash Flow 21.3.11Cash Flow - Calculations1.3.12Sources of Business Finance1.3.13End of Topic Test - Business in Practice1.3.14Grade 9 - Business in Practice1.3.15Exam-Style Questions - Business in Practice1.3.16Diagnostic Misconceptions - Profit1.3.17Diagnostic Misconceptions - Company vs Business1.3.18Diagnostic Misconceptions - Economies of Scale1.3.19Diagnostic Misconceptions - Cash Flow1.3.20Diagnostic Misconceptions - Break-even1.3.21Diagnostic Misconceptions - Fixed Costs
1.4

Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses1.4.2Limited Liability1.4.3Franchising & Not-For-Profits1.4.4Business Location1.4.5The Marketing Mix1.4.6Business Plans1.4.7End of Topic Test - Effective Business1.4.8Application Questions - Effective Business1.4.9Exam-Style Questions - Business Plans
1.5

Business Stakeholders

1.5.1Business Stakeholders1.5.2Technology & Business1.5.3Legislation & Business1.5.4Legislation & Business 21.5.5The Economy & Business1.5.6External Influences1.5.7End of Topic Test - Business Stakeholders1.5.8Grade 9 - Business Stakeholders1.5.9Diagnostic Misconceptions - Recessions
2

Building a Business

2.1

Growing the Business

2.1.1Business Growth2.1.2Finance2.1.3Changes in Business Aims & Globalisation2.1.4Ethics & Business2.1.5The Environment & Business2.1.6End of Topic Test - Growing a Business2.1.7Application Questions - Growing a Business2.1.8Exam-Style Questions - Business Growth
2.2

Making Marketing Decisions

2.2.1Product2.2.2Product Life Cycle2.2.3Price2.2.4Pricing Methods2.2.5End of Topic Test - Product & Price2.2.6Grade 9 - Product & Price2.2.7Promotion & Advertising2.2.8PR & Sales Promotions2.2.9Sponsorship & Product Placement2.2.10Promotional Mix2.2.11End of Topic Test - Promotion2.2.12Application Questions - Promotion2.2.13Exam-Style Questions - Promotional Mix2.2.14Place & Wholesalers2.2.15Direct to Consumer2.2.16E-commerce & M-commerce2.2.17Diagnostic Misconceptions - Decreasing Price2.2.18Diagnostic Misconceptions - Advertise vs Promote2.2.19Diagnostic Misconceptions - Social Media
2.3

Making Operational Decisions

2.3.1Job Production2.3.2Batch & Flow Production2.3.3Working with Suppliers2.3.4Effective Supply Chains2.3.5Just In Time & Just In Case2.3.6Managing Quality2.3.7Total Quality Management2.3.8The Sales Process2.3.9End of Topic Test - Operational Decisions2.3.10Grade 9 - Operational Decisions2.3.11Exam-Style Questions - Managing Stock2.3.12Diagnostic Misconceptions - JIT vs JIC
2.4

Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions2.4.2Gross Profit - Calculations2.4.3Net Profit - Calculations2.4.4Rate of Return2.4.5Rate of Return - Calculations2.4.6Research & Financial Data2.4.7Marketing Data2.4.8Percentage Change - Calculations
2.5

Making Human Resource Decisions

2.5.1Organisational Structures2.5.2Organisational Structures 22.5.3Recruitment2.5.4Effective Recruitment2.5.5Training a Workforce2.5.6Motivating a Workforce2.5.7End of Topic Tests - Human Resources2.5.8Application Questions - Human Resources2.5.9Exam-Style Questions - Human Resources2.5.10Diagnostic Misconceptions - Owners vs Shareholders2.5.11Diagnostic Misconceptions - Internal Recruitment2.5.12Diagnostic Misconceptions - Employee Motivation

Practice questions on Legislation & Business

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    Why might a business that manufactures in the UK be less competitive on price than one that manufactures in China?Multiple choice
  2. 2
    What is the name of the law that places a duty (responsibility) on businesses to make sure that the health and safety of their employees is properly managed?Multiple choice
  3. 3
    What do firms need to complete to ensure dangers in the workplace are minimised?Multiple choice
  4. 4
    Which are the correct costs and benefits of health and safety?True / false
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Technology & Business

Legislation & Business 2