This article answers questions regarding employment legislation such as ‘How the government protects employees?’, ‘What employment laws exist?’, ‘How do these laws protect employees?’, ‘What do these laws mean for businesses?’ and ‘How are businesses affected by these laws?’.
What is employment legislation?
Legal controls of employment are very common around the world. Many countries have laws now that affect the recruitment process, legal rights of employees at the workplace, equal training and promotion opportunities, employment protection, etc.
Employment legislation refers to any form of formal laws and regulations which impose legal responsibilities on a business organization. If these labor laws are followed, then all employees will be hired and promoted on merit alone.
The main result of these employment laws is that people tend to be treated more fairly and equally when being recruited and when spending time in the workplace. However, it is likely to lead to increased costs of employing workers making the labor market less flexible.
Main legal issues related to employee management
Major legislative issues related to Human Resource Management (HRM) include the following:
- Policies and procedures. The business organization must develop and make sure that all employment policies and procedures obey account all relevant legislation such as discipline procedures, unfair dismissal legislation, on health and safety, etc. For example, when advertising a job, the firm must be careful about the wording of job advertisements to treat all applicants must be treated equally and avoid discrimination based on factors like gender, race, disabilities, religion, or sexual orientation. The Human Resource (HR) department must also ensure that employment policies and procedures are updated in line with current changes in legislation.
- Employment protection. Much of the employment legislation is concerned with the legal situation of a person who spends time in the workplace as far as individual rights are concerned. Major legislation acts that cover employee protection give employees the right to written particulars of employment, a minimum period of notice, wage protection, sick leave, not be unfairly dismissed, receive redundancy, maternity leave and reinstatement after such leave, protection from discrimination at work, time off work for such things as major family events, seek recourse by means of industrial tribunals should any of the above rights be infringed, etc.
- Legal rights of employees. Employees need protection to ensure that the business organization is providing equal opportunities and protecting against discriminating (making a choice based on unfair reasons). Legislative requirements must be met when recording applications for jobs, when applying for jobs and at work. Employers may discriminate unfairly against workers because they are of a different gender, nationality, race, skin color, religion, age, belief system, sexual orientation, etc. In most countries, discrimination is illegal. That is why employees who consider they have their legal rights violated can appeal to an equal opportunities committee.
- Trade Unions. In short, trade union is a group of employees who join together to maintain and improve their conditions of employment. Highly militant trade unions which were not willing to compromise had their power restricted in the UK in the 1980s and 1990s when Trade Union Legislation was implemented. Trade union membership has fallen since the 1970s as the nature of the working environment and global trading conditions has become more widespread. Many unions have adapted to these changes by being more agreeable to negotiate. Some legislation related to trade unions are also aimed at improving information flows between companies and employees.
- Legal minimum wage. In some countries employers can still pay whatever wage rate they like, especially in areas where unemployment is high. More and more countries are introducing a minimum wage which is the lowest wage permitted by law or by a special agreement. These laws make it illegal for employers to pay below this particular rate. On one hand, legal minimum wage prevents employers from exploiting workers, but on another it increases business costs which forces businesses to increase prices.
- Education and training. This legislation mainly relates to is a supply-side policy when the government is implementing certain laws on education and training aiming to improve the ease with which people can improve their qualifications. These can include literacy and numeracy levels and relevant skill levels of school leavers. Also, providing training for line managers and others on the responsibilities that legislation imposes upon them.
- Poverty trap. Legislation is this area also aims at improving a supply-side policy, specifically reform of the benefit system to improve the working of the market. In poverty trap, a worker ends up being worse off by getting a job than claiming social benefits. The government aims to reduce the effects of low pay when getting a job by adjusting the TAX system for low-income people and offering incentives to get work.
How are employment legislation issues solved in the UK?
In the UK, industrial tribunals were set up set up to provide a cheaper and less complex approach to employment legislation issues under The Industrial Training Act in 1964
As legally qualified, industrial tribunals deal with a whole range of employment protection items including claims for unfair dismissal, maternity provision, equal opportunities and discrimination. Industrial tribunals are less formal and cheaper than suing a business in courts of law as an individual bringing a case does not incur court costs. Each tribunal is made up of a chairperson, who has to be legally qualified, and two other people.
The Employment Appeal Tribunal, which is presided over by a High Court judge, hears appeals arising from industrial tribunals. Further appeals can be made to the Court of Appeals and then to the House of Lords.
How are employment legislation issues solved in the US?
In the US, employment legislation issues in the US are solved through a variety of means, including:
- Administrative agencies: The Equal Employment Opportunity Commission (EEOC), The Wage and Hour Division of the US Department of Labor (DOL), and The National Labor Relations Board (NLRB) are all federal agencies that enforce employment laws. Employees can file complaints with these agencies if they believe their rights have been violated. The agencies will investigate the complaints and may take action against the employer, such as issuing fines or requiring the employer to change its practices.
- Courts: Employees can also file lawsuits in state or federal court if they believe their rights have been violated. If the employee wins their lawsuit, the court may order the employer to pay damages or other relief.
- Arbitration: Many employers require their employees to sign arbitration agreements, which means that employees must agree to settle any employment disputes through arbitration instead of going to court. Arbitration can be a faster and less expensive way to resolve disputes, but it is important to note that arbitrators are not judges and their decisions are not binding on the courts.
In addition to these formal mechanisms for resolving employment disputes, there are also a number of informal ways to resolve issues, such as mediation and negotiation.
As you can see, there is a considerable number of legal issues to the employment and treatment of people at work. It is normally the task of the Human Resource Management (HRM) function to make sure that the business follows all aspects of employment legislation.
