1. Consumer protection
Legislation designed to protect consumers in their dealings with businesses.
Sale of Goods Act (As amended) 1979. Details here.
Food Safety Act (As amended) 1990. Details here.
Click on the picture:
How does consumer legislation affect businesses?
Raising costs.
If there was no legislation do you think costs would be lower?
Businesses have had to improve quality control and how they deal with complaints.
2. Employee protection.
Legislation that help to govern the relationship between employees, employers and trade unions in the UK.
If there were no legal protections some employers may exploit their employees. How?
The law states:
- employees should have a written contract of employment.
- unfair discrimination is illegal. (Equality Act 2010)
- dismissal must be 'fair.'
- men and women must be paid the same for work of 'equal value'.
- employees should be paid the 'National Living Wage'.
Employment tribunals settle many claims under employment law.
- employees should be paid the 'National Living Wage'.
- employees that are made redundant may be entitled to redundancy pay if they have worked at a company for a certain period of time.
Employment tribunals settle many claims under employment law.
How does employment legislation affect businesses?
Compliance checks such as the right to work in the UK are time consuming.
Added HR costs such as policies for dealing with bullying, harassment, disciplinary procedures or flexible working.
Higher labour costs.
Financial penalties and bad publicity if the business is found to have broken the law. An example here.
However: employment legislation can create positive effects on business.
Inclusivity, belonging, motivation, employee welfare can all lead to increased productivity, reduced absenteeism and cut staff turnover.
An example here.
3. Environmental protection
Legislation covers issues such as:
- pollution
- destruction of wildlife habitats
How does environmental legislation affect businesses?
Environmental legislation offers opportunities and threats to UK businesses.
Some businesses market themselves as being environmentally friendly.
Some businesses create products to help firms
comply with legislation.
There may be a financial cost associated with environmental protection e.g. higher energy bills because of the development of renewable sources of power.
Operations may change because of the need to reduce landfill, such as increased recycling or reduced waste.
Click on the picture. What are the opportunities and threats to businesses you can identify from the story?
