Impact of Employment Law and Corporate Governance on Business Operations

FdSc in Business Management
BAM4011 INTRODUCTION TO BUSINESS LAW
Impact of employment law on
business and evaluation of the
responsibility of corporate
governance on business operations.
Semester 2
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Table of Contents
INTRODUCTION........................................................................................................................ 3
MAIN BODY.............................................................................................................................. 3
Impact of employment law on business and evaluation of the responsibility of corporate
governance on business operations.........................................................................................3
CONCLUSION ......................................................................................................................... 10
REFERENCES........................................................................................................................... 10
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INTRODUCTION
The United Kingdom is the popular place around the world to do business and the reason
is the availability of large number of skilled and talented workers. It also become the safest place
to do business in context to the workers as it allowed them to work in minimum working
standards which protect them from worst working conditions and also from less pay and the
exploitation. In the UK Employment law there are various rules which are given in the provision
of the act to protect the rights of every employee's. The act has the great impact on business also
like there is a provision mentioned in the act which prescribed the UK hourly minimum wage that
depends on the age of individual. For the compliance employers has to check the current national
minimum wages. There is a system in UK for the payment made by the employers for the
employee's which is known as “pay as you earn”(PAYE). In the business employers have to pay
taxes on behalf of their employee's through PAYE to the UK tax authority which is HMRC, but it
would not applied for the independent contractor (Adnan, Hay, and van Staden, 2018). In regard
to corporate governance, it is the system through which UK companies got directed and
controlled. There are board of directors who are responsible for the governance of their
companies. Main purpose of the corporate governance is to bring accountability, transparency,
fairness, responsibilities and risk management in a business organization. It covers the areas like
environmental awareness, ethical behavior, strategies for corporate, compensation and risk
management. This essay will cover the same topic such as; impact of UK Employment law on
businesses, detailed explanation of corporate governance which includes its evolution and its
responsibilities on business operations.
MAIN BODY
Impact of employment law on business and evaluation of the responsibility of
corporate governance on business operations
In the United Kingdom the Employment law got defined as “ contract of service”. It is
an agreement which provides the common or same obligations to both i.e. to employers and
the employee's. Its an area of law which deals with legal rights and duties of employers and
employees. The law got enacted by the UK parliament on 1963, its an old law and various
efforts has been made by the authorities to enact such law which build the relation between
employers and the employee's. The UK Employment Act has mainly three sources i.e.
Common Law, Statute and the European law. The main reasons where the need of
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