2.2.4

Legal Controls Over Employment

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Legal Controls Over Employment

The government can create laws which force businesses to not discriminate between recruits.

Equal opportunities

Equal opportunities

Legal controls prevent businesses from discriminating against potential employees based on:
- Gender (the Sex Discrimination Act, 1975).
- Race (the Race Relations Act, 1976).
- Disability.
- Religion.
- Sexual preference.
- Age.
Through these legal controls, everyone is given an equal opportunity to apply for a job.
Furthermore, companies are obliged to pay employees who do equal work, equal pay (Equal Pay Act, 1970).

Gender pay gap

Gender pay gap

In 2018, medium and large businesses were required to publish information on how much they pay employees.
This exposed the gender pay gap.
Out of the 10,000 firms which published their details, 78% paid men more.
- This is largely because men are in higher-paid positions.
- Men also, on the whole, received higher bonuses than women.

Minimum wage

Minimum wage

Under the Employment Protection Act, 1978, all employees must receive a contract in writing. This prevents employees being unfairly dismissed.
All companies must pay their employees at least the minimum wage.
In 2018, the minimum wage for over 25s is £7.83 per hour.
This legislation prevents businesses from exploiting workers.

1

Business Activity & Influences on Business

1.1

Business Objectives

1.1.1Business Aims 1.1.2Business Objectives 1.1.3Business Objectives Change Over Time 1.1.4End of Topic Test - Business Aims 1.1.5Diagnostic Misconceptions - Profit

1.2

Types of Organisations

1.2.1Sole Traders & Partnerships 1.2.2Limited Companies 1.2.3Limited Liability 1.2.4Unlimited vs Limited Liability 1.2.5Not For Profit & Franchises 1.2.6Multinational Companies 1.2.7End of Topic Test - Business Ownership 1.2.8Application Questions - Business Ownership 1.2.9Diagnostic Misconceptions - Company vs Business 1.2.10Diagnostic Misconceptions - Owners vs Shareholders

1.3

Classification of Businesses

1.4

Decisions on Location

1.5

Business & the International Economy

1.5.1Globalisation 1.5.2Exchange Rates

1.6

Government Objectives & Policy

1.6.1Government Objectives 1.6.2The Government & Business Activity 1.6.3Interest Rates 1.6.4Interest Rates - Calculations 1.6.5Diagnostic Misconceptions - Recessions

1.7

External Factors

1.7.1External Factors

1.8

What Makes a Business Successful?

1.8.1Measuring Success 1.8.2Reasons for Failure

2

People in Business

2.1

Internal & External Communication

2.1.1Communication

2.2

Recruitment & Selection Process

2.2.1Types of Employment 2.2.2Recruitment Stages 2.2.3Effective Recruitment 2.2.4Legal Controls Over Employment 2.2.5Diagnostic Misconceptions - Internal Recruitment

2.3

Training

2.4

Motivation & Rewards

2.4.1Motivation in the Workplace 2.4.2Financial & Non-Financial Methods 2.4.3End of Topic Test - The Workforce 2.4.4Application Questions - The Workforce 2.4.5Diagnostic Misconceptions - Money

2.5

Organisation Structures

2.5.1Organisational Structures 2.5.2Centralised vs. Decentralised Structures 2.5.3Tall & Flat Organisations 2.5.4Functional Areas Within a Business 2.5.5End of Topic Test - Org Structure

3

Business Finance

3.1

Sources of Finance

3.1.1Internal & External Sources of Finance 3.1.2Factors Affecting Sources of Finance

3.2

Cash Flow Forecasting

3.2.1Cash Flow 3.2.2Consequences of Cash Flow Problems 3.2.3Cash Flow - Calculations 3.2.4Solutions to Cash Flow Problems 3.2.5Diagnostic Misconceptions - Cash Flow

3.3

Cost & Break-Even Analysis

3.3.1Costs, Revenue & Profit 3.3.2Profit, Average Unit Cost & Interest 3.3.3Costs - Calculations 3.3.4Revenue - Calculations 3.3.5Break-Even Analysis 3.3.6Profit & Losses - Calculations 3.3.7End of Topic Test - Finance 3.3.8Grade 9 - Finance 3.3.9Diagnostic Misconceptions - Fixed Costs 3.3.10Diagnostic Misconceptions - Break-even

3.4

Financial Documents

3.4.1Financial Statements 3.4.2Income Statement 3.4.3Understanding Business Performance

3.5

Account Analysis

3.5.1Business Calculations 3.5.2Gross Profit - Calculations 3.5.3Net Profit - Calculations 3.5.4Business Calculations 2 3.5.5Business Calculations 3 3.5.6Liquidity

4

Marketing

4.1

Market Research

4.1.1Market Research 4.1.2Forms of Market Research

4.2

The Market

4.2.1Customer Needs 4.2.2Satisfying Customer Needs 4.2.3Market 4.2.4The Competitive Environment 4.2.5Market Segmentation 4.2.6Market Mapping - Price vs Quality 4.2.7End of Topic Test - Marketing 4.2.8Application Questions - Marketing 4.2.9Diagnostic Misconceptions - Competition

4.3

The Marketing Mix

5

Business Operations

5.1

Economies & Diseconomies of Scale

5.1.1Economies of Scale 5.1.2Diagnostic Misconceptions - Economies of Scale

5.2

Production

5.2.1Production Processes 5.2.2Flow and Batch Production 5.2.3Production Efficiency 5.2.4Technology & Production 5.2.5Diagnostic Misconceptions - JIT vs JIC

5.3

Factors of Production

5.3.1Factors of Production

5.4

Quality

5.4.1Importance of Quality 5.4.2Identifying Quality 5.4.3Total Quality Management 5.4.4End of Topic Test - Operational Decisions

Jump to other topics

1

Business Activity & Influences on Business

1.1

Business Objectives

1.1.1Business Aims 1.1.2Business Objectives 1.1.3Business Objectives Change Over Time 1.1.4End of Topic Test - Business Aims 1.1.5Diagnostic Misconceptions - Profit

1.2

Types of Organisations

1.2.1Sole Traders & Partnerships 1.2.2Limited Companies 1.2.3Limited Liability 1.2.4Unlimited vs Limited Liability 1.2.5Not For Profit & Franchises 1.2.6Multinational Companies 1.2.7End of Topic Test - Business Ownership 1.2.8Application Questions - Business Ownership 1.2.9Diagnostic Misconceptions - Company vs Business 1.2.10Diagnostic Misconceptions - Owners vs Shareholders

1.3

Classification of Businesses

1.4

Decisions on Location

1.5

Business & the International Economy

1.5.1Globalisation 1.5.2Exchange Rates

1.6

Government Objectives & Policy

1.6.1Government Objectives 1.6.2The Government & Business Activity 1.6.3Interest Rates 1.6.4Interest Rates - Calculations 1.6.5Diagnostic Misconceptions - Recessions

1.7

External Factors

1.7.1External Factors

1.8

What Makes a Business Successful?

1.8.1Measuring Success 1.8.2Reasons for Failure

2

People in Business

2.1

Internal & External Communication

2.1.1Communication

2.2

Recruitment & Selection Process

2.2.1Types of Employment 2.2.2Recruitment Stages 2.2.3Effective Recruitment 2.2.4Legal Controls Over Employment 2.2.5Diagnostic Misconceptions - Internal Recruitment

2.3

Training

2.4

Motivation & Rewards

2.4.1Motivation in the Workplace 2.4.2Financial & Non-Financial Methods 2.4.3End of Topic Test - The Workforce 2.4.4Application Questions - The Workforce 2.4.5Diagnostic Misconceptions - Money

2.5

Organisation Structures

2.5.1Organisational Structures 2.5.2Centralised vs. Decentralised Structures 2.5.3Tall & Flat Organisations 2.5.4Functional Areas Within a Business 2.5.5End of Topic Test - Org Structure

3

Business Finance

3.1

Sources of Finance

3.1.1Internal & External Sources of Finance 3.1.2Factors Affecting Sources of Finance

3.2

Cash Flow Forecasting

3.2.1Cash Flow 3.2.2Consequences of Cash Flow Problems 3.2.3Cash Flow - Calculations 3.2.4Solutions to Cash Flow Problems 3.2.5Diagnostic Misconceptions - Cash Flow

3.3

Cost & Break-Even Analysis

3.3.1Costs, Revenue & Profit 3.3.2Profit, Average Unit Cost & Interest 3.3.3Costs - Calculations 3.3.4Revenue - Calculations 3.3.5Break-Even Analysis 3.3.6Profit & Losses - Calculations 3.3.7End of Topic Test - Finance 3.3.8Grade 9 - Finance 3.3.9Diagnostic Misconceptions - Fixed Costs 3.3.10Diagnostic Misconceptions - Break-even

3.4

Financial Documents

3.4.1Financial Statements 3.4.2Income Statement 3.4.3Understanding Business Performance

3.5

Account Analysis

3.5.1Business Calculations 3.5.2Gross Profit - Calculations 3.5.3Net Profit - Calculations 3.5.4Business Calculations 2 3.5.5Business Calculations 3 3.5.6Liquidity

4

Marketing

4.1

Market Research

4.1.1Market Research 4.1.2Forms of Market Research

4.2

The Market

4.2.1Customer Needs 4.2.2Satisfying Customer Needs 4.2.3Market 4.2.4The Competitive Environment 4.2.5Market Segmentation 4.2.6Market Mapping - Price vs Quality 4.2.7End of Topic Test - Marketing 4.2.8Application Questions - Marketing 4.2.9Diagnostic Misconceptions - Competition

4.3

The Marketing Mix

5

Business Operations

5.1

Economies & Diseconomies of Scale

5.1.1Economies of Scale 5.1.2Diagnostic Misconceptions - Economies of Scale

5.2

Production

5.2.1Production Processes 5.2.2Flow and Batch Production 5.2.3Production Efficiency 5.2.4Technology & Production 5.2.5Diagnostic Misconceptions - JIT vs JIC

5.3

Factors of Production

5.3.1Factors of Production

5.4

Quality

5.4.1Importance of Quality 5.4.2Identifying Quality 5.4.3Total Quality Management 5.4.4End of Topic Test - Operational Decisions

Practice questions on Legal Controls Over Employment

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1
Possible grounds for discrimination in the workplace:Fill in the list
2
Out of the 10,000 companies which published their gender pay gap details, how many paid men more?Multiple choice

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Effective Recruitment

Diagnostic Misconceptions - Internal Recruitment