Impact of Employment Law on Business and Corporate Governance Responsibility
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This essay discusses the impact of employment law on business and the responsibilities of corporate governance on business operations. It covers the duties of employers towards their employees, including health and safety regulations, and the importance of good corporate governance for long-term success.
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Impact ofEmployment lawon Businessand evaluation of the responsibility of corporate governance on business operations Table of Contents
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INTRODUCTION BusinesslawoftheUnitedKingdomintroducesthelegalenvironmenttothe entrepreneurs who has an interest to run their own business in country or even outside the country. The UK has comprised of three separate jurisdiction i.e. England & Wales, Scotland and Northern Island, very similar laws were apply in these jurisdiction. The companies or business in UK is govern through the Companies Act 2006, it means the rules and regulations by which the business can be run legally and effectively is given under the act of companies of 2006. The company law is divided into 16 schedules and in company law of UK the rules were framed into 1300 sections. Under company law several provisions were given regarding to run the business in UK or outside the boundary of United Kingdom, it also prescribed the duties of the Director's who own the business, the procedure of the director's appointment, the removal, remuneration and also there are provisions for the shareholders of the company under company law. In this essay, the impact of Employment law on Business will be discuss and also the responsibilities of corporate governance on business operations(Berns,2018). TASK At first sight, the employment law can be seen very complex and different for the business owners. However, the employment law is framed to protect the business, to protect the rights of the employees as well as the rights of the employer's(Eckert,2018). The employment law was framed by keeping fair thinking for both i.e. the employer's and for the employees too. Before, entering into the business the contract has been signed out between the employer's and the employees regarding the holidays, discipline and the notices period(Harper Ho,2018). The contract formation helps the employer's because the clarity has been given to the employees regarding the policies of the business or the company, on the other hand in the UK employment law the protection is given to the employees regarding the conduct in the workplace and also equal pay for equal work. For example, In UK, businesses have to pay theNational Minimum Wagesto the employee's according to their age, and the employees who were above the age of 23 are entitled to the National Living Wage(Kenny,2019). The employee's got covered from the moment, they enter in to an agreement with the employer under the Equality Act, 2010 which prohibits the discrimination of any kind between
the employee's, such as; on the basis of gender, race, religion or disability. The employer's has a duty to guard the physical health of the employee's, its a basic duty of the employer's towards their employees. The employee's eventually get the protection by Health and safety laws prescribes under the “Health and safety at work Act” of 1974, it ensures that all the employee's have a right to do the work in that working place which have safe working environment. According, to this act the employer's have some duty towards the employee's to protect the health of the employee's, such duties are given in the act of 1974; Assess Risk-under the act its the duty of the employer to assess the level of the risk in the workplace. It means to check out the possible way which cause injury to the employee's and take the action to remove the risk(Loft,2020). Trained the workers-it's not enough to make the employee's aware about the risk, the employer's has to give trainings to the employee's or the workers if there is any risk while working in the workplace then, what action they will take to safe themselves and also safe the others. Regular physical check up-after, providing the training to the employee's its a duty of the employer's to provide the regular health check up to the employee's. Consultation must be taken regarding the health issues of every worker in the company(Yang, 2020). Provide health and safety information-in every company where there is a relation of employer and employee , the employer has a legal duty under the Health and safety information for employees regulations(HSIER), to display the approved information in such a place which is easily seen by the employees like at workplace or it is better to provide that information to each and every employee. Under thecommon law, which creates the civil liability to the employer to take reasonable care for the health and safety of the employees, including the physical as well as mental health. It's the duty of the employer to to take some positive steps to ensure the safety of the employee's in the light of the information they have. It is important to seek attention for an individual. For the protection there iscommonlaw duty of care,such as; The employee'sgot injuredmostlyatworkplacewhileusing the equipmentsand machinery. It becomes the duty of the employer to provide thesafe plant and equipmentto the employee's which reduces the risk of the injury and also increases the chance of profit in the company(Stohl, 2020).
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It's a duty of the employer's to allot the safe work to do to the employee's. Sometime the employer give such work to their employee's which is hazardous for their health. For example, in the factory of glass the employees were engage to perform such activities which is harmful foe their health and also because the factory is in dark areas where there is no sunlight, which affect the mental health of the employee's. It will become the responsibility of the employer's to providethe safe system of workwhich can be done by the employee's(Vollero,2020). Not everyone can do the different type of work, the employee's are selected to perform the particular work in which the employee has a specialisation or has a knowledge about the work, its really important to recruit such employee's who hascompetent to perform the work. When the person talk about the health and safety, they usually think about the physical health and safety. In place like an industry where the employee's were engaged to perform such work in which there is a risk of physical injury, like in a glass factory, boarding companies where the load has been loaded and unloaded by the workers, sometime the machinery of an industry is not in working condition and it got hurt the employee's without any negligence of the employee, while performing such activities or duties there is a risk to get injured physically for that time it is required from the employer's to provide proper treatment to the injured ones and also give them a time to get relax at home and also give them a compensation for their injury(Siano,2020). If the employer'sgot failed to provide safe working conditions for their employees, it will arise the rights of the employee's to get the claim against the employer's. The health and safety laws are enforced by the HSE, in this HSE inspectors are appointed to investigate the whole incident and after reaching to the certain point which proved that due to negligence of the employer the employee got physical injury, such action can taken by theHSE inspector; the work operations of the industry should be stopped, usually thecompensation should be given to the claimant for the loss occurred but, when the loss is too serious like someone loose the life due tonegligenceof the employer then, thecriminal proceedingshould get start against the employer and there they have to proof their part of action of taking precautions to control the incident(Palazzo, 2020). In the Health and safety at work act 1974, there is a provision for thewelfare of the employee's, the employee's were not only injured physically but sometime due to some incidents at workplace where they gotmentally damagelike no bonus, no leaves, hard work, no compensation, less wages these are some reasons which would put the employee's in astressed
situations, to make the employee's overcome with the stressed situation the employer's has to create such environment in the company which helps the employee's to get comfortable and also the employer's has to organise such activities which make the mind fresh of the employee's like to give them special bonus on any festival, allow them to take leave, provide gifts sometime etc. Thiswell being activitiesmake impact on the employee's and it will motivate them, and also it will improve their efficiency(Amabile, 2020). The Health and safety at work act determines the actions of the employer's to follow the rules and regulations to protect the employee's from the exploitation as well as to provide the health and safety recommendations to the employee's or provide the measures to protect them in a physical or in a mental injury. In the act the obligations of both were cover i.e. of the employer and of the employee's and it got placed in section 2 and section 7 or 8 of the act. In 2018, the regulations got passed known as “Personal protective Equipment Regulations” which operates in dangerous environment where the level of risk is very much high. It's a duty of the employer's to provide the PPE if, the injury can't be stopped through other methods, and in any organisation or industry the PPE is a last method by which the high level of risk could be diminish. Prior to send the worker at hazardous workplace, the level of risk should be communicate with the employee's and also the way to act if the high level risk situation occurs. The main examples of PPE are; hard hats, high-visibility jackets, protective eye wear, safety harness, steel toe cap boots and the most important respiratory equipments. In,eachandeveryorganisationstherearesomeissueslikepersonalissues, payroll,finance etc. in the health and safety also there are some issues.The Management of health and safety at work regulations(MHSWR) 1999, also have a provision for the employer's to make arrangement's of health and safety and also there is a procedure to meet the legal requirements. In theManagement of health and safety at work regulations(MHSWR) 1999, there such regulations; assessment of risk should be done and according to that the risk will identify and then, the action would be done to remove the risk, appointment of such a person who supervise the workplace health and safety,there is a provision to inform the employee's about the risk and also provide the training to them, the health policy should be signed which helps the employee's at the time of injury occur. There are some factors in which the prosecution will include, when no actions or measures will be taken to stop the risk of injury;
Theprosecutionwill start against the employer's if, they breach the rules of the legislature and due to that breaching of the rules, the death has been occurred of an employee, If there is any disregard of the health and safety requirements, if the breaches has been repeated by the employer's and as a result it gives the significant rising of the risk or there is no compliance by the employer's, the standard of the organisation is found to be very low as compare to the standard of the Health and safety laws and this will increase the risk, if there is any notice was served to the organisation regarding the health and safety but, no compliance has been done on that notice etc. in these situations the organisation or the employer's have to face the proceedings against them. When the organisation or the employer's were found to be in a continuous fault of not obeying the requirements of health and safety then, thenoticehas been issued through the Health inspectors and the organisation has to show the improvement in the measure of health and safety, when, the notice has been served to the employer's or to the organisation then, thecourt has order the employer's to do the modificationsin the health and safety measures. The notice which has been issued to the organisation in that notice, the area of breaching was describe according to the health and safety law for example if there is negligence occurred by the organisation to provide the training then, it would be mention in the notice, in that notice only the employer has to comply the breach in the given time. There is type of notice also “immediate notice” and the “deferred notice”, sometimes due to some irregular activity the risk of serious personal injury has been arise then the notice has been issue known as “Prohibition notice”. In theimmediate noticethe activity has been stopped immediately until risk is reduced for example the electricity current was spread due to the lack of trained employee's. Through the deferred notice the activity has been stopped within the specified time limit given in the notice(Loukil, 2022). The time of Covid for the industry was in great loss, at that time the worker's were not able to do the work because of the social distancing and the guidelines of the Covid which is mentioned to do the work from home which is not possible, the mental health of the workers got damage due to not doing the work and the employer's were not paying them for sitting at home, after the Covid there is a challenge for the organisations to keep the workplace clean and safe and also clean the equipments.
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Under the Employment law, the health and safety provisions are covered to protect the employee's from the exploitation and also safeguard the employees from the hazardous activities in the organisation and also provides the measures to protect themselves from the difficulties like the unfair dismissal, discrimination etc(Kammoun,2022). The companies can be run successfully only when the companies were directed and controlled in the proper manner or through the proper corporate governance, the purpose of the corporate governanceis togive the long term success to the company. Good corporate governance include the regular meeting, risk assessment, reduce the corruption, the board of director's will meet regularly, every member of the company will aware about their duties due to which there is no confusion in the company. Corporate governance played an essential tools in the management and growth of companies, all the companies will try to improve the quality of their corporate governance to improve the functioning of business(Kenny, 2019). Everywhere, the people were engaged into structures, where the structure is in mixed obligations to owners, customer and staff there, the concept of corporate governance is highly relevant. Its a universal process which is used in the earlier time at 1900s to know the position of the business and also make aware about the corporate risk, the corporate governance is use by the small business as well as the very biggest organisation. It means to run the business with all the responsibilities and to perform the operations of management according to the time is a part of the corporate governance. The corporate governance benefits are infinite, some of the benefits are; with the help of corporate governance thecomplianceof rules and regulations of the region in which it operates, it increases the efficiency while seen the existing process of the business and fin the ways to make the business operations more efficient, with the help of corporate governance the risk can be identified, corporate governance gives the quality to make better decision's etc. There are many companies that achieved the long term success with the help of good corporate governance for example; the drinks company known asDiageo,which has the transparent remuneration policy,it promote the code of business conduct etc. Effective corporate governance in the competitive market gives the companies a long term success, its a process to give competition to the available competitors, it gives the healthy competition.
CONCLUSION Employment law plays a significant role in the life of the employer's as well as for the employee's, and not only it will helpful for the workers or the employers, indirectly it will help the whole organisation to grow in future. In the above essay the importance of employment would be discussed, and also the importance of Health and safety in the organisations is discuss, and the importance of the corporate governance has been mentioned in the above essay that, what the corporate governance cover and how it is helpful for the growth of the company.
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