Impact of Employment Law and Corporate Governance on Business Operations

This essay discusses the impact of employment law on business and the evaluation of corporate governance on the operations of business with the responsibility of corporate governance. It covers various legislation in order to maintain the relationship of employer and employee in the organisation.

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
Submitted by:
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Table of Contents
Semester 2 .........................................................................................................1
INTRODUCTION..........................................................................................................................3
TASK ...........................................................................................................................................4
Impact of employment law on business and evaluation of the responsibility of corporate
governance on business operations......................................................................................4
Employment law ...................................................................................................................4
Impact of Employment law on business ...............................................................................6
Corporate governance...........................................................................................................7
Evaluation of the responsibility of corporate governance on business operations .............8
CONCLUSION ...........................................................................................................................10
REFERENCES.............................................................................................................................11
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INTRODUCTION
The business law is regulated with the enforcement of employment law in
order to protect the employees within an organization. In order to maintain safe
working conditions within the organisation, the companies, organizations or
entities must adapt an adoptive culture for the protection and security of
employers and employees within an organisation. Businesses are affected with
the enforcement of employment law as the process of training, recruitment and
payment requires additional monetary gain for the growth and development of
organisation. The system which controls and directs the company is the practice
of corporate governance (Adnan, Hay and van Staden, 2018). The practices of the
governance are determined through various articles of incorporation, by-laws,
committees and boards to evaluate the procedure of corporate governance of the
company. This essay will cover the impact of employment law on business and
the evaluation of corporate governance on the operations of business with the
responsibility of corporate governance.
TASK
Impact of employment law on business and evaluation of the responsibility
of corporate governance on business operations
Employment law
The safety and security of employees is ensured with the enforcement of
employment law in the country of United Kingdom. The main purpose of
employment law is to protect the rights and interest of employers and
employees within an organisation. The rights of the workers are secured with
the enforcement of legislation on the matters of holidays, pay, dismissal,
discrimination and others (Brady, 2019). The relationship of employers and
employees is maintained by the enforcement of employment law. The workers
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in organisation are protected under the Employment Rights Act, 1996through
which the rights of the employees are protected in order to prevent any illegal or
irrelevant happening in an organisation. The employees of an organisation are
given three basic rights which includes freedom of association to equal
opportunity, right to decent work and protection against discrimination. The
workers of UK could suffer some unfavourable treatment at the organisation
and for which there was a need for enforcement of such type of law that protect
the rights and duties of employees and employers within an organisation. The
employees of the organisation are bound with the contract of employment
where they are required to follow the rules and regulations of the company
according to the mentioned terms and conditions in the contract (Cabrelli, 2020) .
This contract of employment protects the employees with the imposition of
various rights and duties that are applied to them with the legal obligation of
employment contract. It also helps in enforcing various rights that in turn
imposes legal obligations on the employer and employee and also provides a
resourceful base for working in an appropriate manner. The activities of
business are protected with the enforcement of Employment law in the country
of United Kingdom. It protects and safeguards the rights and duties of
employees within an organisation with the protection of interests of the
employers.
Employment law covers various legislation in order to maintain the relationship
of employer and employee in the organisation. There are different areas that are
to be covered in employment law which includes the contract of employment,
working hours, equal pay, paid holiday leaves, disciplinary procedures,
grievances procedures, maternity and paternity leaves, equality, discrimination,
process of termination with redundancy (Di Prisco, 2019). The employees of the
organisation majorly faces discrimination within the organisation where there is
discrimination on the basis on the basis of caste, creed, colour, gender, race,
religion, age, disability, sexual orientation, pregnancy and maternity and gender
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reassignment and marriage and civil partnership. There are two types of
discrimination which includes direct and indirect discrimination. The unfair
treatment of employees, harassment, bullying and abuse with harassment
consists of direct discrimination. The employees of the organisation where the
qualified employees are not considered and the employees with internal source
are considered and which in turn refers to indirect discrimination.
There are various laws that are enlisted under the employment law in UK in
order to ensure the safety and security of law which are National Minimum
Wage Act, 1998 which ensures providing of minimum wage to the employees
and also to continuously review the process of inflation. Equality act, 2010
which prevents the discrimination of employees at workplace in order to
maintain the decorum in organisation (Greuning and Brajovic-Bratanovic, 2022). The
organisation follows the policy of equal pay for equal work in order to maintain
equality in organisation for equal payment of work to all employees irrespective
of their gender. The Maternity and Paternal Leave etc. Regulations 1999
which provides paid leaves to the female employees at their maternity stage in
order to ensure the health and safety of employees. Employment Relations Act,
1999 determines a number of rights through which the activities of trade with
trade union recognition, de recognition are established in order to maintain the
cordial relationship among the employees of organisation. Part-Time Workers
(Prevention of Less Favourable Treatment) Regulations 2000 where they are
various organisations in United Kingdom that provide work on part time basis
in the form of part time contracts to the employees. It is analysed that the people
on part time contracts are more relaxed in comparison the people on full time
contracts due to the less pressure of work that is delivered in part time contracts.
Health and Safety Act, 1974 where the health and safety of employees are
considered in a serious manner in order to maintain a safe and healthy
environment in the organisation (Jamalpur, Parvin and Moradi, 2021). The
organisation maintains the organisation by providing neat and clean wash rooms
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that are sanitised on regular basis foe the maintenance of health and safety of
the organisation.
Impact of Employment law on business
The employment law enforces additional costs on businesses with the
enactment and enforcement of employment law through the contract of
employment. Businesses have to spend more money on the process of training
and recruitment in order to enhance the development of business in an
organisation. The workers are to be trained in such a way that they help in
enhancing the growth and development of organisation and the procedure of
recruitment also helps in gaining eligible and suitable employees for the
organisation. This further helps in maintaining the productivity of employees
with the enhancement of their skills with the process of training in an
organisation. The employees are able to feel motivated with the maintenance of
fair treatment on the organisation (Lockton, and Brown, 2020). The disputes
between the employees will be solved through the enforcement of business law
by implementing business laws in order to create a cordial environment in an
organisation.
Employment law helps in maintaining fairness at work within the organisation
which in turn helps in enhancing the productivity of employees. The
relationship among the employees and employers are also improved with the
maintenance of fairness within the organisation. There would be a number of
threats while working in an organisation but the enforcement of employment
law prevents the workers or employees from doing any illegal activity or
mischievous conduct towards their employers. The employees of the
organisation are protected on an number of grounds such as discrimination,
sexual harassment, compensation, safety at workplace and others (Naciti,
Cesaroni and Pulejo, 2021). The legislation of employment law helps in protecting
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the employees from wrongdoing by the employers in an organisation.
Corporate governance
The system through which the companies are directed and controlled is
referred as Corporate governance. The governance of the companies are mainly
directed through the Board of Directors. The directors and auditors of the
organisation are appointed through the shareholders. There are various
principles of corporate governance which includes discipline, independence,
transparency, accountability, responsibility, fairness and social responsibility.
The development and functioning of corporate governance is affected with the
major impact of corporate governance which in turn exerts a huge pressure on
resource allocation. The performance of firm is majorly affected due to the
impact of corporate governance which in turn affects the creative activity of the
corporation. The activities of business are majorly affected with the
enhancement in productivity of business in the organisation (Tessema, 2019). The
culture of a company enhances with the affect of strong and corporate
governance which in turn helps in leading a sustainable environment for
business. The performance of the employees also enhances with the
development of corporate governance in the organisation. Corporate governance
also helps in increasing the efficiency of the members of team in the company.
It also helps in evaluating the risk that may happen in the future in order to
avoid the mistakes for the growth and development of organisation. Corporate
governance plays a significant role in developing the strategies of organisation
in order to determine the role and responsibilities of the managers, directors and
members of organisation. The governance of organisation is also determined
with the enforcement of different strategies in order to increase the revenue of
the company.
The Board of directors ensures that the accountability of organisation is
maintained in order to maintain the transparency in the relationship between
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employees of the organisation. Many important communities with different
stakeholders such as employees, management, customers, financial advisories
and different bodies of government are also able to regulate the practice of
business activities within the organisation. The decision making process of the
management of corporation is majorly influenced with the governance of
company where governance helps in setting the boundaries in order to limit the
operational activities of business. Governance helps in recognising the process
of decision making through the employees of the organisation who are held
responsible in order to have an effective legal obligation for the operational
activities of business. The management of the organisation majorly affects the
decision making process by accumulating information of commercialising of
business in order to process the activities of trade within the organisation.
Evaluation of the responsibility of corporate governance on business
operations
The articles of the company with the incorporation of by laws and
charters that are provided by the members of the company including the Board
of directors helps in determining the practices of the governance with the
identification of the barriers or hindrances that are to be addressed by the
organisation. The main responsibility of the corporate governance is to
maintain the transparency in the organisation for maintenance and increase of
revenue for the growth and development of the company in all aspects in order
to address the responsibility linked with the corporative nature of the company.
It also protects the interests of the stakeholders by safeguarding the interests of
minority and majority stakeholders (Vanchieri, 2022). The sustainability and risk
of the corporation is also majorly affected with the effective functioning of
corporate governance. The culture of the organisation is improved with the
functioning of corporate governance as it helps in providing transparency and
accountability to the organisation. The structures and process of the
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organisation helps in improving the quality of decision making in corporate
governance and even the planning of management is improved with the
effective functioning of the members of organisation. The sources of finance
with long term functioning is also improved with the help of corporate
governance which in turn helps in increasing the revenue and economy of the
organisation.
Corporate governance is very much required for the overall development of the
organisation which can be achieved with the increase in investment with the
trust of huge investment through the investors of the company. The investment
of the investors helps in increasing and enhancing the productivity of the
employees due to a stronger financial base. The performance of the employee is
also enhanced with the increase of financial growth in the organisation. The
investors are very much accountable for developing the financial base of the
company. The efficiency of the organisation is enhanced and improved with the
availability of procedures that are accountable with complete disclosure in order
to maintain the transparency in all the transaction of business in the
organisation. This in turn helps in preventing the fraud and illegal practices in
the company. The corruption in the organisation is also reduced with the
effective practice of corporate governance. The use of capital has been very
complicated with the increase in the role of investors and financial providers of
the organisation. The choice of investment available to the investors with the
expansion of organisation has in turn increased the risk of the investing in the
organisation. The complex and complicated procedure of availing the finance
from financial institutions has in turn increased the immense ned of corporate
governance. The companies with higher evaluation receives higher investment
due to the value of the company. The corporate governance of the company
helps in determining the worth and value of the company.
The operational activities of the business are affected with the maintenance of
accountability and transparency in the organisation which in turn help in
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increasing the value of organisation. The crisis, risk or barriers that may have
arise in the future can be prevented with the operational functioning of
corporate governance. The leader or managers of the company are also able to
reduce the alarming risks that may have arrived in the future with the
maintenance of transparent and accountable system. Therefore a good corporate
governance can be achieved with the availability of stronger relations with the
investors. A company functions very smoothly with the investment of investors
which in turn majorly affects the operational activities of the organisation with
the structural framework of corporate governance. The practice of good
corporate governance creates a sustainable and corporative environment with
the maintenance of accountability for development of the company.
CONCLUSION
From the above part it is concluded that, the employees of the company
are protected with the enforcement of Employment law which imposes legal
obligations on the members of organisation. The relationship of the employer
and employee is maintained with the enforcement of employment which in turn
protects the rights and duties of employees with imposition of various
legislations for the protection of employees in the organisation. Businesses are
majorly influenced with the enforcement of employment law as it increases the
monetary costs of the company with the process of training, recruitment and
payment procedures. The way or method through which the companies are
directed and controlled refers to corporate governance. The value of the
company enhances with the effective functioning of corporate governance as it
helps in maintaining the system of organisation with the process of transparency
and accountability that helps the company function in an appropriate and
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smooth manner. The company is also able to create a sustainable environment
with the practice of corporate governance.
REFERENCES
Adnan, S.M., Hay, D. and van Staden, C.J., 2018. The influence of culture and corporate
governance on corporate social responsibility disclosure: A cross country analysis. Journal of
Cleaner Production, 198, pp.820-832.
Brady, B.V., 2019. An Epic Change to Employment Law. J. Corp. L., 45, p.245.
Cabrelli, D., 2020. Employment law in context. Oxford University Press.
Di Prisco, D., 2019. „Blockchain and AI: The technological revolution’s impact on corporate
governance relationships”. New Challenges in corporate governance: Theory and practice,
pp.368-381.
Greuning, H.V. and Brajovic-Bratanovic, S., 2022. Analyzing banking risk: a framework for
assessing corporate governance and risk management.
Jamalpur, H., Parvin, K. and Moradi, M., 2021. Analysis of the US unilateral sanctions
process and its impact on employment and development in Iran.
Lockton, D.J. and Brown, T., 2020. Employment Law. Bloomsbury Publishing.
Naciti, V., Cesaroni, F. and Pulejo, L., 2021. Corporate governance and sustainability: A
review of the existing literature. Journal of Management and Governance, pp.1-20.
Tessema, A., 2019. The impact of corporate governance and political connections on
information asymmetry: International evidence from banks in the Gulf Cooperation Council
member countries. Journal of International Accounting, Auditing and Taxation, 35, pp.1-17.
Vanchieri, K.M., 2022. Exploring Business Strategies for Assuring Compliance to Changes
in Employment Law (Doctoral dissertation, Walden University).
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