Impacts of Changes in Labor Laws on Performance and Operational Cost of Establishment in UK Automobile Industry

This study investigates the impacts of changes in labor laws on performance and operational costs of companies in the UK automobile industry. It discusses the concept of labor laws, evaluates the influence of changes in labor laws over performances and operational costs of companies in the UK automobile industry, identifies various requirements of changes in labor laws, and recommends strategies to overcome impacts that have been created due to changes in labor laws on performance and operational costs in the automobile industry.

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Automobile Industry.
To Investigate the Impacts of Changes in Labor Laws On Performance and Operational Cost of Establishment- A
Case Study On UK
LITERATURE REVIEW
Theme 1: The concept of labour laws.
As per the views of Hu and et.al., (2019) labour laws are the essential part of any establishment that
governs the employer and employee relationships which also involves the trade unions. Various laws that
have been created within an organization fulfil the requirements related to protect the UK workers’ rights
as well as employee’s rights. The law exists within any company in order to regulate the relationship as
well as interactions between employers and their employees. With the help of work related rules and
regulations, the companies are appropriately able to ensure a fair procedure that is being held in all areas
of the business. Without any work premises laws and regulations, the workers of the UK could have to
suffer various unfavourable conditions as well as treatments at the hands of their employer along with no
way even to remedying the adverse conditions.
Theme 2: The influence of changes in labour laws over performances and operational costs of the
companies in automobile sector
Wu, Hao and Ren, (2020) illustrates that there are various notable changes to the United Kingdom
employment laws have or will likely take effect the performance level as well as operational costs of the
companies those are dealing into automobile industry. Compliance is a continuous procedure and thus
the employers have to act accordingly with the help of updates in order to prevent rule violations, avoid
costly fines as well as lawsuits to create stable working culture and environment for the employees to
perform at their maximum. The changes are considered for instance, wage rate increases with effect from
1 April 2021 due to which more than 2 million workers of UK will get benefits from the National
Minimum and Living Wage increases. This automatically assist them into their better performances and
thus reduces the cost of operations over them spend by the companies.
Theme 3: The essential requirements of changes in labour laws
Marchi and et.al., (2018) highlighted that labour laws play a major role in order to improve the industrial
relationships which enhances the employer and employee relationship along with minimizes industrial
disputes along with protects workers from any kind of exploitation by the management of the
establishments. The labour regulations and legislations helps workers in order to get fair wages and also
enables them to minimize labour agitation. There are certain changes that has been imposed into the
recent labour laws of United Kingdom for the betterment of employees which limits the enhanced basic
pay to 50 percent of their salary. This moreover increases the gratuity bonuses that has been paid to the
employees.
Aim and objectives
Aim
To analyze the impacts of changes in labor laws over performance and
operational costs of enterprises in UK automobile industry.
Objectives
•To discuss the concept of labor laws
•To evaluate the influence of changes in labor laws over performances and
operational costs of companies in UK automobile industry.
•To identify various requirements of changes in labor laws.
•To recommend strategies to overcome impacts that has been created due to
changes in labor laws on performance and operational costs in automobile
industry.
Feasibility
The research proposal is feasible because the impact of labour law on the
performance of the organisation is the major issue where the researcher is able to
adopt the content and information in definite manner which help them to conduct
the study effectively. The secondary research has been conducted which provide the
detailed information. REFERENCES
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Research Methodology
Research limitations: These are those attributes involved within the
methodology which influenced the representation of findings of the
research or investigation.
Research type: Research type is the process or a kind of method to collect
the data and information on the appropriate manner from where the
researcher can be able to conduct the report effectively.
Research Approach: Research approach refers as an accurate planning
and procedure that help and support the investigator to collect the data by
using different techniques and methods and can be able to do analysis and a
correct form of interpretation.
Research Design: This is a kind of framework where the investigator has
to choose and select the appropriate methods and techniques for leading the
current research study.
Research Philosophy: Research philosophy is a belief about the way the
data and information will be collected and analysed in definite order is
known as research philosophy.
Data collection: It is important to be used by the investigator to gather the
information in relevant way and can solve the issue of the research problem
in effective manner. There are majorly two types of data collection which
as primary and secondary data collection.
Data analysis: There are mainly two types of data analysis: thematic and
SPSS. The thematic analysis has been used when the researcher use the
qualitative form of data and SPSS has been used when the research is
conducted in form of quantitative type.
Ethical Consideration: The researcher has to maintain the confidentiality
while conducting the research as it will enable the study to be conducted in
correct manner.
Findings and Discussion
Theme 1: Advantages of flexibility hiring the labour for short time to
reduce cost
The concept of creating the laws and legislation in regard to labour is
essential to be implemented by the organisations where the government has
created such labour laws to protect the right of an individual employee and
labour.
Theme 2: Suitable changes in labour laws and its impact over
organisational performance
The UK government has implemented and announced various kinds of
labour laws in relation to protect their rights where it also puts the impacts
over the organisational performance.
Theme 3: The cost of labour that affect the price of goods and services
The labour cost simply defines as sum of all the wages paid to the labour or
an individual employee which benefits and payroll taxes paid by an
employer.

NOTES
INTRODUCTION
Background of the study
Labor laws are also known as employment laws refer to those that mediate the relationship
among the workers, trade unions, employing entities and the government. In general there are
four labor laws which include payment of wages act, minimum wages act, payment of bonus act
1965 and the equal remuneration act (Asadi and et.al., 2020). These applied to all establishments
as well as to all workforces in both organized and unorganized sectors. The automobile industry
is the important contributor to the UK economy, generating huge amount of annual turnover and
thus requires appropriate labor laws in order to work efficiently within the market space. Labor
laws has been created within the firm with an intention to correct the imbalance of power among
the worker as well as employer, to set up and preserve processes through which workers are
recognized as equal partners.
Rationale of the study
The topic i.e. the impacts of changes in labour laws on performance and operational costs of
companies in UK automobile industry is important to study as it helps interested candidates such
as management, entrepreneurs and other people in order to understand the way they can
overcome with the challenges faced due to changes in labour laws (Zhang, Gerlowski and Acs,
2022). The issue is essential to currently study is due to changing trends that are coming across
the world and requires modifications on consistent basis. This study is beneficial for companies
that are operating in automobile sector of UK.
Research questions
1.What is the concept of labor laws?
2.What is the influence of changes in labor laws over performances and operational costs of
companies in UK automobile industry?
3.What are the varied requirements of changes in labor laws?
4.What are the strategies to overcome from the impacts of changes in labor laws over
performance and operational costs into automobile industry?
Structure
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The structure has been arranged in a way so that the investigation has been done in appropriate
manner. The report is constituted with the introduction, literature review, research
methodologies, data analysis, findings and discussion along with conclusion and
recommendations.
Literature Review
Theme 1: The concept of labour laws.
According to Di Vaio and Varriale, (2020), effective labour laws cover a broad range of issues
that are related to the working environment as well as processes. Few famous and well known
employment laws consists of age discrimination, disability, dismissal, employee grievances,
employment contracts, equal pay scale, holiday pay, etc. Although UK employment law is
complicated but failure to determine an individual employment status can prove to be very costly
for businesses. Laws have been created and generated in order to promote fair treatments unless
there is great level of justification. Moreover, they have to combat social exclusion within which
employers must positively accommodate the requirements of the overall workers who are
performed their best and also contribute their maximum for the betterment of the company.
Theme 2: The influence of changes in labour laws over performances and operational costs
of the companies in automobile sector
Moreover, Naidoo and Gasparatos, (2018) states that the changes also occurs in context of off-
payroll working rules who work just like employees and pay the similar kind of employment
taxes as direct employees no matter what framework they work through. The rules have been
applied to individuals who offer their services to another company through liaison such as
personal service company. Although, such changes enhanced the costs in the form of NIC's. This
moreover burden the administration and compliance measures. No doubt this might have
increased the level of productivity of companies but also increases the costs of operations to the
company. This also enables the organization management to understand the issues as well as
manage them appropriately which is the key to mitigate the risks that are possessed by the
introduction of the modified rules.
Theme 3: The essential requirements of changes in labour laws
They highly benefit the employees of the UK as it offers great level of recognition for their work,
receive unlimited holidays as well as employee discounts which are the top three perks to them

and thus automatically increases their level of productivity and interests into the work of the
company in most successful manner. This increases the worker protection and more prominently
able to regulate employment relationships. According to Guelpa and Verda, (2019), initially the
labour laws have been generated on the basis of previous requirements of people as well as
companies which are based upon the certain elements of labour laws which includes
employment, wages and remuneration, conditions of work health, safety and welfare
requirements, etc. But with the enhancement into the working conditions of the companies and
specifically into the automobile sector, the governments are required to create changes into the
existing labour laws and apply them over complete sector to save the benefits of the employees
who are working in automobile companies. Upon the certain elements of labour laws which
includes employment, wages and remuneration, conditions of work health, safety and welfare
requirements, etc. But with the enhancement into the working conditions of the companies and
specifically into the automobile sector, the governments are required to create changes into the
existing labour laws and apply them over complete sector to save the benefits of the employees
who are working in automobile companies
Research Methodology
Research limitations: With the limited time duration, restrained number of resources and
controlled money are counted and acknowledged as major limitations at the time of doing or
conducting the study. Due to limited amount of time frame and money resources, the quantitative
analysis has not been done. In order to complete the study in considerable and appropriate
manner previously published scholarly articles have been selected which automatically helps in
resolving the issues and challenges faced by the researcher in context of unavailability of
resources (Di Vaio and Varriale, 2020). Thus, in such way the scholar tries their maximum to
fulfil the desired requirements of the study in complete manner by adopting best suitable
practices and methods into the study.
Research type: The research type is consisted of two types which are qualitative and
quantitative. The qualitative research defines as a method of data collection in the theoretical
manner or a detailed manner form where the study can be conducted in brief order.
However, the quantitative research type refers to set off the data collection in the statistical or
numerical manner which provides the result of the research study in definite way. The current
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research study is going to utilise the qualitative research method or type for the gathering of the
data and information as it will benefit the researcher to conduct the study in detailed manner
from where it reduces the confusion and misunderstandings and provides the flexibility
respectively.
Research Approach: The research approach is consisted of two types: inductive and deductive.
The inductive research approach is a simple method where research uses a set of observation and
then theorise the patterns in definite manner. Whereas, the deductive research approach is a
scientific form of investigation in which the researcher read out the existing theories of the
phenomenon and after that process they test the hypothesis. The current research report will be
going to utilise the inductive research approach as it enable the researcher to adopt the flexibility
and also it supports the new generation theories in definite order
Research Design: The research design is mainly segmented into two factors named as
exploratory and descriptive research design. The exploratory research design is used by the
investigator to clarify the problem of the research issue. Alternatively, the descriptive research
design explains a set of data collection and information in the systematic manner where it helps
the researcher to direct the study in right direction. The present research study will use the
exploratory design because it delivers the deep insights into the particular research subject and
enable the researcher to study new things and subject in definite manner. Along with this, it also
usually cost lower than other design methods and helps to lay the foundation of the study in the
definite order and can lead to further research.
Research Philosophy: These philosophies are segmented into two types: positivism and
interpritivism. The positivism research philosophy defines the reality that requires to be used by
the researcher to conduct the effective way of the research study.
Data collection: There are majorly two types of data collection which as primary and secondary
data collection. The primary data collection defines where researcher collects the data by primary
sources such as interviews, focus groups, questionnaires and such more whereas, secondary data
collection use the sources which are already researched and investigated by someone else and the
current researcher can use that information to conduct the study such as books and journals.
However, the present research is going to use the secondary data collection as it will enable the
researcher to save the time in researching for the information and it is also cost effective.

Data analysis: The thematic analysis is a method of collecting the information by identifying,
analysing and interpretation of the patterns of the data and information. Thus, the present
research study will use the thematic research analysis as it delivers the flexibility and wider
range of analytical options which help the investigator to direct and lead the study in definite
manner.
Ethical Consideration: Also, the number of references will be mentioned by the researcher
which ensures that the content and information which has been collected is not copied and
plagiarised from any other sources and maintain the ethics and principles.
Findings and Discussion
Theme 1: Advantages of flexibility hiring the labour for short time to reduce cost
The UK government has taken the responsibility and action towards the benefits of the labour at
the workplaces which also benefits the employee and employer as well. The flexible hiring of the
labour for the short duration provides the benefits to the employee or an organisation where they
can possible able to save and reduce their operational cost which has been essentially required
spending on the workers and employee. Organisation who adopts the flexibly hiring helps the
company in the retention process where the organisation do not need to recruit and hire the
different people for that particular position and can give a responsibility to the particular staff
member. Providing of the flexibility to the workers will enable them to work in definite way
without any stress and hesitation and can provide the result effectively. As, to run any business
or organisation the management is required to hold the employee for the maximum period where
offering the flexibility will allow and develops the possibility to stay in the company for longer
period. However, it also benefits the company in their operation management where it includes
increased labour market participation rates where it plays an important and significant role in the
organisation. Also, it provides benefits by lower rates of resources as the flexible workers
allowed the company to save and reduces their operational cost in definite manner and in return
they can be able to acquire the increasing amount of benefits and productivity in appropriate
order. However, the report has mentioned the different area of advantages the companies scan
get and can easily reduce their operation cost along with increasing the organisational
performance in definite manner.
Theme 2: Suitable changes in labour laws and its impact over organisational performance
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The UK government has announced the various suitable laws for the betterment of the employee
and labour which includes employment wages, condition of work health and safety, welfare
requirements and such more where the automobile industries also required to adopt this laws and
implement at their organisation to benefit the employee of their particular company and protect
the rights of the labour. But, the government also required upgrading and keeping their more
focus on changing the labour labs which can provide the effective results to the worker and also
can put the positive impact on the organisational performance in definite order. It has been
known that the laws and legislation in relation to labour benefits are made but with the time, it
requires to adopt some changes where the company can offer increasing amount of holidays and
employee discounts offers where it helps the labour to get the definite amount of benefit and can
work in the organisation with respective manner. The efforts of the labour will result the
organisation in positive ways and provides the successful outcome to the company. Recently, the
government of UK has implemented the new law of NMW where it stands for national minimum
wage for 21-22-year-old age group will increase by 9.8% to £9.18 an hour which benefits the
labour in definite manner. The concern by the government in regard to labour rights and
legislation is very helpful and beneficial for the workers from where they are able to get the best
opportunity to earn and secure their rights in appropriate manner which results the worker
effectively
Theme 3: The cost of labour that affect the price of goods and services
The labour is the most important stakeholder of the company where it is required to keep
satisfies the employee by fulfilling their essential needs and requirements in definite manner. The
labour is the most important stakeholder of the company where it is required to keep satisfies the
employee by fulfilling their essential needs and requirements in definite manner. However, the
cost of labour presents as the total expenditure incurred by the organisation for the employment
of the employee so that they can benefits the workers in definite order and can provide the
definite outcome. In addition, the cost of labour is improperly allocated then it affects and causes
the price of the goods and services to shift away from the cost and damage profits where the
costs of living is the standard which needs to be maintain in certain manner.
CONCLUSION AND RECOMMENDATIONS
From the above report, it has been concluded that states faces important challenges while seeking
to design labour regulations in order to adopt in automobile industry. They must have to create

them on the basis of considering challenging atmosphere and overall environment within which
they are required to perform their operations with the help of employees. From the above
research, there has been few requirements arises which shows that changes within the United
Kingdom labour laws shows great level of achievements in order to make their employees happy
and satisfied. This reaction automatically enhances their performance level along with manage
their operational costs also up to some extent. A growing interests into the businesses prompts
the emergence of changes into the labour regulations and thus with the help of secondary data
analysis by considering previous studies, it has been evaluated that the changes are highly able to
provide economic effects of labour laws that is being created. It includes minimum wage laws
which has appropriate power to while using efficiently helps to improve the position of the low
income households as well as reduces the level of earnings inequality.
Moreover, in order to highlight few recommendations through which one can able to manage
their workings in most successful manner involves:
 Labour rules and legislations should pursue with three inter related and mutually
reinforcing objectives that are able to promote human capabilities, improve job quality as
well as performances.
 The labour laws should be responsive enough to address all the issues and challenges of
the employees working within the company in most effectual manner.
 This should be underpinned by the basic values of the working agenda and thus, it should
be recognized as all those who work well have rights at work place.
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