Legal Controls Over Employment
Business: Cambridge International GCSE (2027 Exams), topic 2.1.5
Legal Controls Over Employment
The government can create laws which force businesses to not discriminate between recruits.
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
- 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
- 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.
Other legal controls over employment
- Legal controls also protect employees from unfair dismissal.
- Meaning employees cannot be dismissed without a fair reason such as misconduct, redundancy, or poor performance.
- Health and safety laws require employers to provide a safe working environment, training, and protective equipment.
- One example is the Health and Safety at Work Act (1974).
Effects of legal controls
- Employees benefit from legal protection, fair pay, job security, and equal opportunities.
- Employers face higher compliance costs and must avoid fines or lawsuits.
- But they can also gain a more motivated and loyal workforce.
Test yourself on Legal Controls Over Employment
Out of the 10,000 companies which published their gender pay gap details, how many paid men more?