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

1

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
Asadi, S. and et.al., 2020. Investigating influence of green innovation on sustainability performance: A
case on Malaysian hotel industry. Journal of cleaner production, 258, p.120860.
Di Vaio, A. and Varriale, L., 2020. Blockchain technology in supply chain management for sustainable
performance: Evidence from the airport industry. International Journal of Information Management, 52,
p.102014.
Guelpa, E. and Verda, V., 2019. Thermal energy storage in district heating and cooling systems: A
review. Applied Energy, 252, p.113474.
Hu, X. and et.al., 2019. Cost-optimal energy management of hybrid electric vehicles using fuel
cell/battery health-aware predictive control. ieee transactions on power electronics, 35(1), pp.382-392.
Marchi, E. and et.al., 2018. Sustainable Forest Operations (SFO): A new paradigm in a changing world
and climate. Science of the Total Environment, 634, pp.1385-1397.
Naidoo, M. and Gasparatos, A., 2018. Corporate environmental sustainability in the retail sector: Drivers,
strategies and performance measurement. Journal of Cleaner Production, 203, pp.125-142.
Wu, H., Hao, Y. and Ren, S., 2020. How do environmental regulation and environmental decentralization
affect green total factor energy efficiency: Evidence from China. Energy Economics, 91, p.104880.
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
3