Management Report on the Minimum Wage and Living Wage for Tesco

Management Report on
the minimum wage and
‘living’ wage

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Minimum wages and living wages..............................................................................................1
Aim of the Minimum and living wages......................................................................................1
Benefits for minimum and living wages for Tesco:....................................................................1
Cost of minimum living wages for Tesco:..................................................................................2
Suggested recommendations.......................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................4

INTRODUCTION
Minimum wages can be defined as minimum amount of wages that a employer must pay
to workers fro the work they performed during a specific time period which can not be reduced
in any case. Living wages refers to a income level of individuals that allow them to fulfils food
and shelter needs of their families. The chosen company for assessment is Tesco a multinational
retailing brand headquartered in UK. The serving area of the company includes more than 14
countries including Asia, America and Europe. The report covers how does Tesco apply the
minimum and living wages, aim of the company. In the next part it covers cost and benefits for
the company in dealing with this issue as well as the suggested recommendations for the
issue(Bell and Machin, 2018).
MAIN BODY
Minimum wages and living wages
Minimum wages is the law to protect worker's right against remuneration system of the
organisation. It helps in ensuring a just and equitable remuneration to all employees who needs
such protection. Minimum living wages can be a useful element to overcome from the poverty
also can reduce the inequality between men and women in organisation. Living wages provide a
mean to the employees and their families so that they can maintain a standard of living and
afford basic amenities such as food, shelter, health care and education.
Aim of the Minimum and living wages
The main of the making minimum and living wages law is:
 To ensure that employees can have the basic wages to fulfils their basic physical and
social needs.
 To secure enough living wages for all employees so that employees can provide food and
shelter facilities to their families.
 To ensure a better living standard of the employees. (Belser and et. al., 2020)
Legal regulations follows by Tesco
A business is not only influenced by the internal factors but also need to considers what is
going on outside of the company. The businesses has to work according to the external factor.
There are many government policies and laws that regulate the business behaviour and same
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