Legal Controls Over Employment 

People often need legal protection. This is because some businesses might treat workers poorly or even exploit them. 

Vocabulary: 

• Discrimination – favouring one person over another. It can be in different grounds of race, age, sexual orientation, disability, gender and religion. 
• Exploitation – Situation in which you treat someone unfairly 
• Unfair Dismissal – when a worker is dismissed illegally by a business. 

Governments often pass legislation to protect people at work. Without such protection, some businesses would exploit their workers by paying low wages, making workers work long hours, treat unfairly between groups. 

The Nature of Equal Opportunities Legislation 

• Gender: Unless there is a specific exception (e.g. a school may choose to recruit a PE teacher of the same gender as the students they will be teaching), a business cannot treat men and women differently, or treat one gender less favourably.
• Race: Discrimination on the grounds of nationality, race, colour or ethnic origin is not permitted.
• Religion: Discriminating against people based on their religious beliefs, including those who have no religious beliefs, is not allowed.
• Ethnic Origin: The birthplace of a group of people of a different race from the main group in a country. 
• Harassment: when someone behaves in an unpleasant or threatening way towards you. 
• Disability: Businesses cannot discriminate against disabled people. They must also take reasonable steps to enable access to the workplace and provide any appropriate equipment that disabled people need to work. Businesses need to practice working and make the work environment to help accommodate disabeled employees.
• Accommodate: to adapt an environment for someone in order to meet their needs.
• Sexual Orientation: People cannot be discriminated against on the grounds of their sexual orientation (whether they are lesbian, gay, bisexual or heterosexual). They also cannot be discriminated against if they are transgender.
• Age: No preference can be given to someone based solely on their age unless there is a specific reason for doing so, e.g. being old enough to hold a driving licence for a job that involves driving.

The Sex Discrimination Act 1975 states that a person must not be discriminated against because of their gender. For example, adverts for jobs and job titles must be ‘genderless’. Recruitment and selection must not favour a particular gender. People should be promoted on grounds of ability not gender.

The Equal Pay Act 1970 states that an employee doing the same or ‘broadly similar’ work as a member of staff of the opposite sex is entitled to equal rates of pay and working conditions.

The Equality Act 2010 says ‘a disability is a physical or mental imparment which has a substantial and long-term adverse effect on your ability to carry out normal day-to-day activities’. The Act makes it unlawful for a business to discriminate on the grounds of disability.

The Race Relations Act 1976 makes it illegal to discriminate on grounds of race. This means that a business cannot appoint someone who is white in preference to someone who is from an ethnic minority. (NB. This was changed in 2002 and 2003 to include a wider range of organisations and groups.)

Minimum Wage Laws 

Many Governments around the world have introduced a Minimum Wage – Regulations set out the minimum amount of pay a worker is entitled to per hour. This wage is based on a worker’s age. There is also a specific rate for apprentices. 

➔ Minimum Wage – Minimum amount per hour, which most workers are entitled to be paid. 

➔ Apprenticeship – System of training new entrants to a trade or profession, often, but now always younger workers, mostly on-the-job training but often with some college attendance. 

There are three main reasons why governments set minimum wage: 

1. To benefit disadvantaged workers – low income families, women and ethnic minorities benefit mostly from minimum wage. 
2. To reduce poverty – many countries have overcome using this strategy to end poverty. 
3. To help businesses – It allows a greater inequality and fairness among workers, which helps workers be more motivated. 

Effects of Minimum Wage Laws on Business 

The minimum wage for businesses may cause problems. The cost of production increases as wages increase. These employees are replaced by machinery and companies with more intensive capital in production. However, the benefits of having a minimum wage will help low paid workers be more motivated. Further, employees having more disposable incomes means they can spend more buying goods and services. This will help drive up sales and profits for businesses. In addition, paying higher pages means businesses will experience low rates of staff absence and better reliability.