Analysis of Employment Legislation's Benefits and Drawbacks in HRM

This report provides an overview of employment legislation, analyzing its positive and negative impacts on businesses, employees, and society. It defines employment legislation as the laws regulating the workplace, governing employer-employee relationships, and addressing aspects such as hiring, working conditions, and termination. The report highlights the pros of employment legislation, including the protection of employees and employers, dual protections, value recognition, and economic stability. It also discusses the cons, such as potential for undue advantage, reputational risks, ignorance of the law, increased costs, time consumption, and complexity. The report emphasizes the importance of employment legislation in balancing the master-servant relationship, ensuring equal rights, and fostering a fair and productive work environment, while acknowledging the challenges businesses face in complying with these regulations. Finally, the report concludes that while there are drawbacks, the positive effects of employment legislation outweigh the negative ones, making it essential for regulating workplaces and promoting fairness.

Running Head: Human Resource management 1
Human Resource management

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Introduction:
Employment Legislation is the law which mainly regulates those persons who work within the
workplace. Therefore, it can be said that this legislation directly influences the employers,
employees and unions. The main role of employment law is to govern the relations of those
individuals and groups who are engaged in the work, and also to make rules for various aspects
of employment. These aspects included rules for individuals who can be employed or who
cannot be employed, how employers can offer job, treatment of employees during the process of
engagement, terms and conditions under which employees and employer can conduct their work,
duties own by employer towards employee and vice versa, and rules for terminating the
employment relationship. It must be noted that scope of this legislation is very wide and it covers
various other matters also such as treatment with employees, discrimination, unfair practices etc.
(Human Resource institute of New Zealand, n.d.).
Employment legislation is important for business organizations, but it is also considered as
controversial law because of its impacts on business and public. This paper defines the pros and
cons of the legislation which governs the relationship of employment. For this purpose we
consider both, importance of employment legislation and also the adverse impacts of this
legislation on business and individuals. Lastly, paper is concluded with brief conclusion.
About employment legislation:
Employment law is also known as the labor law which mainly directs the relationship between
the workers, employing entities, trade unions and the government. Generally, labor law deals
with the triple relationship that is relationship between employee, employer, and the union.
Various provisions are considered by the labor law such as rights of the employees at workplace

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and through the contract of employment. It must be noted that standards of employment law are
the form of social norms which defines the minimum socially acceptable conditions under which
employees and contractors are allowed to work. This law was enforced by various government
agencies legislative, regulatory, or judicial.
Labor law developed with the industrial revolution, because relationship between worker and
employer was changed from small scale operations to large scale factories. Workers demand for
better working conditions and ask for the right to join the labor union, and employers preferred
more predictable, flexible and less costly workforce. Therefore, this type of law was developed
from the struggles conducted between various social forces.
This section states the important areas of employment law in Ireland which directly affects the
business organizations and individuals. Statute law and decision of the Courts influence almost
all aspects of relationship between employee and employer such as from recruitment through to
retirement. It must be noted that, in context of Employment law Ireland is considered as most
regulated area in Europe (Fry, 2013).
Pros of Employment legislation:
Employment law is the law which regulates the relationship between the employer and
employee, and for this purpose various authorities at local, state, and federal level is incorporated
which ensures that proper law is put in the place. Employment law is considered as very
important law because it ensures the protection of both employer and employee. On larger scale,
employment law ensures the benefits of whole society at both social and monetary levels.
Employment legislation has various benefits, and some of these benefits are stated below:

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Protection of Employee- Generally, employees and employers are operated under the
relationship of master-servant, in which it is expected from employee that he performs his duties
on the basis of the instructions given by the employer and only for the good of the employer.
However, in case employers left unchecked than it might be possible that they misuse their
power against the employee. For the purpose of balancing the master-servant relationship,
various Acts are introduced by the government such as National Minimum Wage Act 2000, the
Protection of Young Persons (Employment) Act 1996, the Protection of Employees (Part-Time
Work) Act 2001, etc. These acts are introduced for the purpose of ensuring the protection of the
employees against any abuse or discrimination. Employment law in Ireland ensures various
rights for the employees such as fair procedures, fair wages, equality at workplace, safe and
healthy working environment, etc (Matheson, 2017).
This can be understood from the example of Shedan Limited, in which one of the employee of
Shedan named as Kristina Kukstaite alleged that she suffer racial discrimination and when she
made complain in this regard she face constructive dismissal. In this matter, Workplace
Relations Commission (WRC) ordered €14,000 as compensation in context of racial
discrimination and constructive dismissal and €20,000 for victimization (CIPD, n.d.).
Protection of Employer- the main aim of employment legislation is not to end the master-
servant relationship, but it’s main purpose is to get equality between these relationships and also
to ensure that all the individuals get similar opportunities to initiate or end this relationship. On
the other side, this law also ensures that people who engaged in the business must get the
opportunity to conduct their business in such manner as it ensures profit. Therefore, various laws
introduce which ensures protection of employers as well. For example- employers has right to
reject the individual if such individual does not possess required qualification and employer also

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has right to expect that employees perform his duties as per the instructions given by the
employer. Therefore, employment legislation also protects the productivity of employer, profits,
and ability to remain competitive in the market place (B&F, n.d.).
Dual Protections- employment legislation in some cases offer dual protection to both the
employers and the employees. This can be understood through example, labor regulations also
state standards which define rules and regulations on how employee can interact with other
employees and it also state the regulations on interactions held between the employers and the
employees. This can help the business in removing the conflicts which can result in stress for
both employer and employee. Compliance of employment legislation ensures financial benefit
for both employer and employee, such if employer fulfills his/her obligation under employment
legislation then employer can avoid financial penalties and also potential lawsuits. On the other
hand, if employee fulfills his/her obligation under employment legislation than they get proper
compensation for the work they perform and they also get many other financial benefits such as
reduced medical expenses (Thompson, n.d.).
Value Recognition- as stated above, labor law reflect various moral standards and other values
of the society, and it is necessary to ensure the compliance of these moral standards and other
values at workplace. This can be understood through example, law related to discrimination is
clearly based on the human equality, and law related to child labor based on the belief that
children must not work under any adverse conditions and they does not have capacity to
understand the contracts and other requirements required by the job. Labor law compliance is
also necessary because it ensures the development of the moral standards stated by the society,
and develops overall value system of the society. It must be noted that, changes occurred in labor
law reflects less stable social norms and also a shift in dominant belief systems.

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Economic Stability- labor law ensures the right of the employer to get profit from the business
they conduct and also ensure the right of the employee to get fair compensation for the work they
performed, and all this ensures economic stability in the country. Economic growth period is the
period which reflects profitable and healthy business with those employees who are getting right
wages to participate as consumers. Changes occurred in employment legislation as well on laws
related to operating procedures, generally occurred during the period of economic recession
(Thibodeaux, n.d.).
After considering the above benefits and importance of the employment legislation, it can be said
that this area of law not only provides benefit to the employees but it also provides the benefit to
the employers and society. As stated, it helps in balancing the relationship of master and servant
and also ensures equal rights and opportunities to both master and servant.
Cons of Employment Legislation:
Above section of this paper defines various benefits of the employment legislation, but it must be
noted that employment legislation has some disadvantages also, and some of these disadvantages
are stated below:
Undue advantage- Some people took the undue advantage of the legislation and use the laws for
their own benefits in wrong manner. This can be understood through example, employers are
obliged to pay the employees the minimum wages even though employees are not working well,
or in some cases they provide maternity leave to those women employees who are not
performing well and after that they hire temporary employee on their part and paid them too.
Such cases cause unnecessary disadvantage to the employer.

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There are many cases in which employees took undue advantage of the rights provided to them
by the employment law, and because of this employer bear negative consequences (Arup, 2009).
Affect their reputation- employment legislation provides the option of redundancy to the
business organizations, but it is not possible for employer to use that option freely because it
adversely affects their reputation. Generally, qualified candidates do not want to work in any
such organization which does not offer job security to their employees. There are number of
organization which opts for this option without thinking about the consequences of the option.
Ignorance of law- this is the most significant issue for business organization because it results in
severe consequences for the business. There are two types of situation in this context intentional
ignorance and non-intentional ignorance, firstly intentional ignorance of law includes the non-
compliance of law or misguidance of law with wrong intention. In these cases business
organizations bears severe financial penalties and other consequences, and it also spoils the
image of the business. Secondly, non-intentional ignorance of law in which business
organization does not complied with the law because of lack of understanding of law or any
other genuine reason. In this also business organizations bears financial penalties and other
consequences, and it also spoils the image of the business.
There are number of cases in which business organizations bear legal consequences also because
of the non-compliance with the law (Getrevising, n.d.).
Increases Cost- compliance with the law is the costly procedure and it ultimately increases the
cost of the business by imposing various legal obligations on the business and there are number
of procedures which are lengthy and costly. On the other side, non-compliance of law attracts
financial penalties for business organizations which also increase the cost of the business.

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Time consuming- compliance with the employment law is the time consuming procedure
because it requires proper monitoring on continuous basis and proper attention of the
management (eurwork, 2003).
Complex in nature- compliance of law is the procedure which is complex in nature because it
involves different procedures which are complicated to follow. The other issue which makes this
procedure more complex in nature is the focus of law on procedure rather than the outcome of
the law.
After considering the above facts, it can be said that employment legislation also has some
negative effects on both employer and employee which make this legislation burden for business
organizations. However, it must be noted that these negative effects can be handled by the
business organization with the help of proper planning and management.
Conclusion:
Employment legislation play very important role, but it is also controversial in nature because of
its impacts on business and public. Above stated facts state the positive and negative effects of
the employment legislation on employee, employer, and union. This paper defines various issues
related to the employment legislation, but still positive effects of employment legislation are
more in comparison of negative effects. Therefore, it can be said that employment legislation is
important for regulate the workplaces.

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References:
Arup, C. et al, (2009). Assessing The Impact Of Employment Legislation: The Coalition
Government’s Labour Law Programme 1996-2007 And The Challenge Of Research. Available
at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.453.6760&rep=rep1&type=pdf.
Accessed on 16th January 2018.

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B&F. The Importance of Employment Laws. Available at: https://www.bf-law.com/the-
importance-of-employment-laws/. Accessed on 16th January 2018.
CIPD. Case law on employment equality. Available at: https://www.cipd.ie/knowledge/emp-
law/employment-equality/cases. Accessed on 16th January 2018.
EurWork, (2003). The impact of employment legislation on small firms. Available at:
https://www.eurofound.europa.eu/observatories/eurwork/articles/the-impact-of-employment-
legislation-on-small-firms. Accessed on 16th January 2018.
Fry, W. (2013). Brief overview of Irish employment law. Available at:
https://www.lexology.com/library/detail.aspx?g=66f65ff3-e912-4ebe-ac60-8b0f115b4b37.
Accessed on 16th January 2018.
GetRevising. Employment Law. Available at: https://getrevising.co.uk/grids/employment-law.
Accessed on 16th January 2018.
Human Resource institute of New Zealand. Employment Legislation. Available at:
https://www.hrinz.org.nz/Site/Resources/Knowledge_Base/A-H/Employment_Legislation.aspx.
Accessed on 16th January 2018.
Kristina Kukstaite -v- Shedan Limited/ Equality Tribunal/30 December 2013.
Matheson, (2017). Employment & labour law in Ireland. Available at:
https://www.lexology.com/library/detail.aspx?g=6e93981d-4493-4645-a6ee-b1a9edfe9c3e.
Accessed on 16th January 2018.

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Thibodeaux, W. The Importance of Employment Laws and Compliance with Intentions of the
Laws. Available at: http://smallbusiness.chron.com/importance-employment-laws-compliance-
intentions-laws-12322.html. Accessed on 16th January 2018.
Thompson, V. Importance of Labor Laws. Available at:
http://smallbusiness.chron.com/importance-labor-laws-62734.html. Accessed on 16th January
2018.