Importance of Employment Law and Corporate Governance in Business

This essay discusses the importance of employment law and corporate governance in maintaining smooth business operations and relationships between employers and employees. It highlights the impact of these laws on the business and the need for compliance. The essay also covers the different aspects of employment law and corporate governance, such as fair conduct, risk management, and ethical behavior. It emphasizes the need for businesses to follow these laws to maintain a good brand image and attract skilled candidates. The essay also discusses the consequences of non-compliance and the benefits of following these laws.

BUSINESS LAW

Table of Contents
REFERENCES................................................................................................................................1

Employment is one that clearly states about the right and duties of the employers and
employees during the certain point of time. Furthermore, the employment law is very much
necessary as it helps the firm to ensure that work within any organization is carried out smoothly
and also bets relationships between the employer and employees is been maintained for longer
time frame. Also, the current essay will highlight the importance of the employment law and its
impact on the working of the business. Furthermore, the study will explain in detail about
corporate governance and will evaluate the responsibility of business in maintaining the such
kind of responsibilities in long run.
It has been seen that corporate governance is been followed in current times in almost all
the organization. Furthermore, it is so because it covers the major areas relating to environmental
awareness, ethical behaviour and risk management. Also, in big organization like Tesco where
complex business activities are carried out it is very essential that best brand image is been
maintained in various target markets. Thus, it is done through following the certain principles of
the corporate governance so that more people might be attracted towards the business and also
competitive advantage is maintained in long run (Aguilera, Marano and Haxhi, 2019). Also, it
can be said that corporate governance is necessary for all organization whether big or small as it
allows the firm to maintain the transparency in all the business wok that is been carried out.
Furthermore, it also assures that there is enough fairness in the working and no employees are
discriminated on any basis within the workplace. Moreover, through following such kind of the
corporate governance the firm would be able to identify all the future potential risks and ensure
that there is proper risk management techniques adopted within the firm. Thus, it is duty of the
top management to ensure that good corporate governance is been adopted within the workplace
so that efficiency in the business processes might be maintained across all the business levels.
Moreover, it would ensure that better decisions are made and strategic plans are developed that
would help the business to conquer newer markets in the most efficient manner. Also, through
the constant efforts business would be able to achieve all kinds of short and long term objectives
in the most efficient manner (Bhagat and Bolton, 2019). Furthermore, in any business there are
lot of organizational functions such as marketing, finance, human resource and much more.
Thus, all these function within the organizations requires proper following of the corporate
governance principles so that business efficiency and productivity of the employees could be
maintained. Furthermore, it has been seen that those organizations that fails to fulfil such kind of

responsibility at the workplace often falls into some kind of trouble or have increased number of
conflicts at the workplace. Moreover, it is responsibility of each employee at the workplace to
ensure that right kind of corporate governance is been followed so that best operations of the
company could be carried out. Furthermore, it can be said that shareholders also plays major role
in evaluating the efficiency and influencing the groups of people within the organization. Thus,
the major responsibility of any manager within the workplace is that all the shareholders of the
company gets the best returns for the amount that has been invested by them earlier (Iqbal,
Nawaz and Ehsan, 2019). Furthermore, such kind of firm attitude would help in improving the
overall business performance and would also build best brand image across various target
markets. Moreover, such kind of acts also help the firm in maintaining the personal integrity and
also allow in selecting the best candidates from various markets to conduct different business
operations.
Also, corporate governance helps in devising the best internal policies and helps in
determining how the company would be directed in long run. Furthermore, the corporate
governance is policy that allow any organization big or small to be accountable and responsible
in all its daily activities that are been carried out in the workplace. However, it is been seen that
corporate governance policies that are developed within the firm aims for long term value
creation and ensures that organization is able to balance all the things out. Furthermore, through
good corporate governance values any firm would be able to maintain good satisfaction level and
ensures higher level of retunes in the future (Ciftci and et.al., 2019). Moreover, the corporate
governance had been increased over years as people now are becoming more socially responsible
and also there is no such kind of law that is made for such kind of the governance at the
workplace. Also, in context of transparency it can be said that highly skilled workers would help
the business in suggesting the best ways through which the business could reach to greater height
of success. Furthermore, it can be said any company that wish to achieve the best success have to
develop policies that complies the corporate governance principle and also it is duty of all
mangers to ensure that such policies are properly communicated to each of the employees so that
maximum benefits are derived in the end.
Employment law may appear varied and complex, specially to business people who need
to understand the UK employment law in order to get the grip of the daily business activities and
hiring people in the business. Employment laws are there to protect different businesses,

determine there responsibilities and rights towards there employees and staff working in the
organization. This law is diverse and inclusive of many aspects which are crucial for running a
business with the help of different individuals. For example, these laws in UK safeguards various
organization as they set out different guidelines for what to exclude and include in the contract of
the employment like holiday entitlement, notice period, work authority etc. it works in the
interest of employer and employees both.
When an organization starts it requires hiring staff for different purpose in the business
and contract needs to be signed by both the parties and such contract binds them to fulfil their
duties and act for their boundaries (Metcalf, 2018). Employment laws in UK are mandatory
required for the organization to follow from the very beginning till the end of the entire process
as people in the business are very vital for the success and it is importance to protect the right of
those people. At the time of hiring the employees due contact of employment needs to be formed
which must be in accordance with the employment law as the working hours, wages, salaries,
holidays, rights etc. must be duly determined in the contact which must be according to the
employment laws. In case of lack of compliance and abidance companies may suffer serious
consequences which can harm the reputation of the business in long term.
Employment laws define the fair conducts in the workplace and fair pay to the
employees. There are set standards of minimum wages for employees which needs to be abided
by the employer and in case of breach employees can take legal actions against the same. In UK
there is “national minimum wages” which are based on employees age and work. According to
the “employment rights act 1996” there are multiple topics are which are covered under this such
as unfair dismissal, dismissal, paternity leave, maternity leave and redundancy etc. it also states
that there must not be any discrimination based on age, gender, caste, creed, race etc.
Employment law covers wide area of the legal system which governs large process and policies
for the employment relationship (Torreggiani and De Giacomo, 2022). Employees must be
treated with the due dignity and authority. Further employment law also recently has included
the need to have redress-al platform in the organization where employees can report their issues
and problems they are facing in the organization. This further works in favour of both
organization and employees. Staff is also gets protection at the workplace under the act work act
1974.

Businesses in UK are largely affected by the employment law as at many stages they
need to keep the law in mind for the smooth flow of business operations within the organization.
This law implicates facilitating the safe working conditions for the employees at all levels
which requires businesses to adapt various safety measures. These safety measures are required
from the organization in terms of making premises safe for the employees, keeping the
workplace safe and sound. Business organizations are impacted by the law as they need to
maintain a healthy workplace which fits for its employees (Campbell, 2019). Maintaining equal
pay under the equal pay act 1970, as business are required to maintain the equal pay for the
people working at the same level and contributing equal work. Equal work contribution by
employees needs to paid equally and there must be bias in terms of the payment for employees.
There work must be recognized in the same manner. Impacts the goodwill of the organization,
when an organization fails to abide by the employment laws there are serious implication of the
same. It negatively impacts the goodwill of the organization.
Employment law act as a guiding light to the businesses as this is the law employers can
go to for any employment related query and brings the solution from the same. This law benefits
the enterprises in so many ways as there are dos and don't s which are clearly stated in it.
Businesses are largely impacted by the same as they no longer have to establish the uncertain
rules. Businesses have to keep themselves regularly updated with the employment law and new
regulations updated in it. There is significant impact an organisation has the way it treats its
employees, as employees are said to be the crucial pillar of an organisation. They must be treated
in rightful manner regarding various aspects (Abhijit; Mohana, Vamsi, 2020). It impacts the
organizational stricture in the organization as well. A business which abide by the employment
law has a significant organization stricture which is being cherished and recognized in the
industry. Also, there tends to be less employee turn over in the business when they follow the
laws and comply by the same. These laws have crucial impact on the businesses as they need to
be incorporated while making the contact of employment for the employees in the organization.
Corporate governance in UK comprise various laws, policies, codes and conducts which
are need to be practices by the organizations. In UK, it is generally seen as an effective model
which works and makes the interest of the various stakeholders as priority. Corporate governance
guides organization to behave certain way and enhance the processes and practices in the
organization. It encompasses various rules, processes and practices which directs company. It is

the top hierarchy the organization which influences the corporate governance in the business.
The major areas of corporate governance are ethical behaviour, risk management, environmental
awareness, corporate strategy (Lansbury and Bamber, 2020). There are few basic principle of
corporate governance such as accountability, fairness, transparency, responsibilities and risk
management. It has major priority of directing the corporate behaviour in the organization. As in
UK it has been observed by many laws which act as a watch dog and when a company fails to
comply by the same, they are being guided.
A clear and precise corporate governance helps establish great relationship among
investors and company, as they are the indicators that organization has its operation going in the
right direction. Many companies face serious compliance issues in the organization due to the
failure to comply with the same. In these cases legal procedures are put in place to deal with such
scenarios. Good corporate governance forms control, transparent rules, effective leadership and
aligns the interest of various stakeholders. UK has established a code based approach of
corporate governance for the listed premium companies. And these companies are supposed to
follow the principles and laws in order to have smooth business operations. There is a policy of
comply over explain, according to this a company needs to comply with the rues and regulations
of the corporate governance and in case of failure they need to explain the reason for such non-
compliance.
In UK the corporate governance is not a law, instead it is a code which is not mandatory
to comply yet is expected of the organization to comply. Time to time the respective bodies
guide the business organization to comply these policies in order to have a balanced conduct in
the business. As per the companies act 2006, it is the legislation which sets out the legal
requirements regarding the decision-making and implications of getting it wrong. Corporate
governance sets out different polices and regulation which should follow as these are in the
interest of employers and employees both (Musick, Bea and Gonalons-Pons, 2020). Working
under the boundaries of corporate governance makes an organization is less prone to face the
implications. e.g. Deloitte is a UK based organization delivering professional services globally. It
is a well-known organization which believes in importance of corporate governance and has
recently introduced its own corporate governance policies for the employees in the organization.
These policies are supposed to be followed by the staff in performing daily jobs., and in case of
failure to do so, they face various implications.

It is majorly focused on the stakeholders' engagement which expects the business to have
transparency of the business operation and position of the business with its stakeholders. Further
it incorporates the requirement of holding the organization accountable for the action they are
taking and operations they are conducting. The set guidelines are different for different industries
and different size of the businesses. These regulations and policies may not be mandatory to
follow, yet they are vital for a company as they make or break the brand image of the business in
the market. It makes people in general who may or may not be the stakeholders of the business
think positive of the existence of the business (Bird and Brown, 2018). Hence, it can be said that
the compliance of the corporate governance holds great importance for the organization in both
short and long term.
Thus, in the end it can be concluded that employment law requires that proper policies
are developed within the workplace so that there are not many difficulties faced in carrying out
various tasks by different levels of employees. Also, it is required that employment law has all
the relevant business details that are required to ensure enough transparency at the market.
Furthermore, through having the best employment within the workplace more skilled candidates
could be attracted towards the business in the future. Moreover, the corporate governance would
result establishing the best legal rights and duties of the employees in future course of business.
Also, with clear assignment of roles and responsibilities the firm would be able to achieve the
unexpected targets and efficiency against the group of competitors in various target markets.

REFERENCES
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relations: National regulation, global changes. Routledge.
Metcalf, D., 2018. United Kingdom labour market enforcement strategy 2018/19. HM
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Review. 85(4). pp.639-674.
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corporate environmental disclosure strategies in the context of Brexit. A cross-country
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