Compliance of Employment Laws and HR Strategies at Black Lion Hotel

This report examines the compliance of a small-scale service industry business, the Black Lion Hotel and Restaurant, with UK employment laws. The study explores the hotel's human resource strategies and their alignment with employment regulations. The report includes an introduction outlining the background, significance of the problem, aims, and objectives, followed by a literature review. The research methodology is detailed, and the structure of the dissertation is presented. The report addresses key research questions concerning the hotel's HR strategies, compliance with employment laws, the importance of adherence, and potential improvements. It also includes an analysis of the concept of human resource strategy and the importance of training and development. The report concludes with recommendations for the hotel to effectively integrate employment laws into its HR practices, contributing to employee empowerment and organizational efficiency. The report is a valuable resource for students studying business development and human resource management.

The compliance of the small
companies in the service industry
with the employment laws

Table of Contents
CHAPTER 1 : INTRODUCTION...................................................................................................1
Background to research..........................................................................................................1
Organization background.......................................................................................................2
Significance of the problem....................................................................................................2
Aims and Objectives...............................................................................................................3
Research questions.................................................................................................................3
Structure of the dissertation....................................................................................................4
CHAPTER 2 : LITERATURE REVIEW........................................................................................5
CHAPTER 3 : RESEARCH METHODOLOGY .........................................................................11
REFERENCES..............................................................................................................................15

CHAPTER 1 : INTRODUCTION
Background to research
Employment law is the field of law that governs the relationship between employees and
employer and this includes expectations of employers and rights of employees at the workplace.
Different outlooks can be projected from global indices in relation to UK policies regarding
labour and regulations (Bos‐Brouwers, 2010). One of the major strengths that has been
associated globally with UK is its flexibility in the labour market as recognised by World
Economic Forum. The friendly policies and regulatory framework of UK in context of labour
regulations and for doing business is highly remarkable.
UK labour law is established with the intent to regulate relations between employees,
trade union and employer within an organisation. The legislation encompasses a wide range of
topics such as discipline, dismissal, redundancy, grievance procedure, sick pay and leave and
holidays. Moreover, the law deals with numerous other issues related to employees working in
an organisation including absenteeism, wages, sickness, holidays, emergencies, flexible working
time, maternity, paternity, working hours and holidays (Chi, 2011). The laws and regulations are
formed to ensure that there is no discrimination at the workplace on the basis of caste, creed,
colour, gender, religion or disability. Further, employers are required to ensure health and safety
of the employees at the workplace. It is provided that any matter or issue related with employees
would be dealt with in the employment tribunal. Several laws exist in United Kingdom related to
employment which includes European law, common law and statutes.
In the evolving market place and turbulent market conditions, it is imperative for the
growth of any country's economy that successful and multinational business organisations exist
in the country. Small scale service industry plays an important role in providing a positive impact
on the global economy and help in growth and development of the nation (Dyck, Morse and
Zingales, 2010). This can be claimed from the fact that businesses provides various benefits for
the socio-economic development of a country such as reduction in poverty, creation of
employment opportunities, raising the standard of living of people etc. This study tends to
provide an understanding of role of employment laws in governing the small scale service
enterprises and how these are implemented as human resource strategy in UK.
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Organization background
Black Lion Hotel and Restaurant is a privately owned village hotel that is known for
providing comfortable rooms, delicious food, warm welcome and quality services. It is a small
scale restaurant in the hospitality industry. This historic hotel is situated in the green of Long
Melford and provides a wonderful escape from the hustle and bustle of life. It offers 10
marvellous comfortable rooms and is open for lunch and dinner (Wójcik, 2013). The menu
provides for hearty favourite and scrumptious dishes has made Black Lion an award – winning
restaurant. Many customers have made it a trend to spend their Sunday at Black Lion and get
relaxed. Long Melford owns craft shops, antique emporiums and the beautiful and magnificent
Holy Trinity Church of 15th century which are the major attractions for the customers visiting the
hotel. The location of the Hotel is worth for sight seeing and the ambience and quality services
offered make it a wonderful place to stay and relax.
The Black Lion hotel is engaged in the hospitality sector in the small scale service
industry and is governed by the employment laws and regulations. The hotel is required to
identify the current and future needs of human resources that is needed to achieve goals and
objectives (Gunasekaran and Spalanzani, 2012). The human resource strategies formed and
executed by Black Lion are required to be in tune with the employment laws.
Significance of the problem
This is to focus upon the significance of small companies that are in a position to
influence the operations of the organisation through the strategic management of the human
resource. The present research work highlights that the human resource management activities
operating in tune with the compliance of employment laws and statutes, provides the human
resource management an opportunity to have strategic impact on the small scale company. The
study tends to identify the relationship between human resource strategies and compliance with
employment regulations in smaller companies. This research provides a conceptual and well
presented framework projecting the inter – relation between the compliance of employment
regulations by smaller companies with the productivity and efficiency in the work and
empowerment of employees (Alonso-Almeida, Rodríguez-Antón and Rubio-Andrada, 2012).
The study provides a detailed understanding of the linkage between compliance of employment
laws by small scale enterprises of the service industry and how these are implemented as human
resource strategies in the organisation.
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Aims and Objectives
The key aspect of this assignment is to identify and understand the factual purpose that
triggered the need to carry out this research. The aims and objectives of the present report
focuses on the legislation and regulatory framework of employment laws in UK and the impact
of their compliance by smaller companies on the human resource strategies. The study aims to
determine the effect and correlation of the strategy of the company with regard to provide a
conducive working environment, benefits and other incentives to the employees in accordance
with their performances and output. In this context the aim of the research is “to explore the
compliance of small scale companies operating in the service industry of UK with the
employment laws as a human resource strategy- A study on Black Lions.”
Objectives :
 To determine the human resource strategy of Black lions UK.
 To ascertain the compliance of human resource strategy undertaken by Black Lions with
the employment laws of UK.
 To identify the need base importance of complying by the employment laws.
 To recommend ways in which Black Lion can more effectively involve the employment
laws of UK into their human resource strategies.
Research questions
This section is based on the above mentioned aims and objectives that will assist the
researcher to accomplish them in a defined manner. The basic idea behind this to get
acknowledged by different queries and answering the questions in line with the aims and
objectives of the research by referring to the accuracy of data obtained from the participants
involved in the research work. Moreover, it helps in verifying the reliability and viability of
information that is obtained from the use of data collected with the help of secondary sources.
 What are the human resource strategies of Black Lions UK ?
 How the human resource strategy undertaken by Black Lions comply with the
employment laws of UK ?
 What is the need to abide by the employment laws ?
 What are the ways through which Black Lion can involve the employment laws of UK
into their human resource strategies more effectively ?
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Structure of the dissertation
This section provides a brief presentation of the whole research project to outline the
main ideas which is presented here under :
Chapter 1 Introduction : It is the foremost part of the project that outlines the key areas covered
and provide a brief description of the subject matter that is selected to carry out the research.
This part also highlights the aims and objectives of the study and provide an understanding of
organisation's background, rationale behind the survey and assessment of the topic.
Chapter 2 Literature review : It is another key section of the project that seeks to provide
elucidation of the concentrated topics of this research work. In the present report, it is achieved
by defining and describing varied theories, concepts and opinions of different authors regarding
the subject matter that herein divides the assignment into smaller sections. Moreover, it assists
the researcher by enabling him to cover all the possible aspects in the work.
Chapter 3 Research methodologies : This section provides various methods and techniques
adopted by the researcher to carry out the study and how these methods were employed for
effective evaluation and assessment of the project. This unit enables to direct the research work
towards a specified goal.
Chapter 4 Data analysis : This unit is yet an important part of the study wherein the data and
facts gathered are explicated and various sources for collecting data and information is identified.
For the purpose of preparation of present report, both primary and secondary data have been
used. A questionnaire is framed herein to collect the data by directly approaching the
respondents. Other sources of secondary data includes the information available and gathered
using different books, journals and online publications etc.
Chapter 5 : Conclusion and recommendation : This is the last but not the least unit of the
investigation that are referred to interpret and analyse the findings of the assignment conducted
by the surveyor. On the basis of conclusion, further recommendations are provided that seek to
bring out some precise measures in relation to the subject matter which have been discoursed in
the present study. The conclusion provides a concise and precise overview of the findings of
whole research work.
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CHAPTER 2 : LITERATURE REVIEW
Concept of human resource strategy
According to the view of Bourgeault, Demers and Bray, (2016). Human resources planing is the
process which assist organization in identifying the present and future human resource's
requirement. Human resources' department develop HR strategy in order to achieve success. It is
one of the key for organization to achieve aim and objective on time. There are different type of
HR strategies which organization can adopt after understanding its needs for the organizations.
HR department need to understand the current environment and current employees and their
skills. There are different strategy such as talent strategy, high performance culture strategy etc.
In talent strategy in which human resources' management is responsible for identifying the future
staffing needs. In this it need to make strategy for recruiting, hiring and retaining high skilled
employees. In HRM strategy it includes the identification of job competencies such as
knowledge, skill etcs. Further it also covers the ability of performance each organization function
and developed overall job descriptions. There are many strategies which are made by the
organization which are linked with the laws and legislation made by government. Greer, Lusch
and Hitt, 2017 state that for retaining the employee within the organization company need to
develop some strategy so that workers not switch to other organization. For this purpose
company can conduct training and development program for its employees so that they can
understand their work and not face issues at the time of workings. If employee understand then
way of working then they not face any issues and not quit the jobs. Along with this, for
increasing the productivity of organization, it need to provide training facility so that employee
can work with more effort. This strategy help in increasing the productivity and retaining
employee for longer time. As per the law company should provide the training and development
facility to employees. This strategy is linked with this employment and training act 1973. Apart
from this, for retaining the organization company also need to keep reward system so that
employee can motivated toward their work. It is one of the best strategy for achieving
organization aim and objective on time. Further if employee workers not like to work at risky
place for this purpose Human resources' department need to develop strategy as concern to health
and safety act 1973 in which it need to provide safe and secure working place to its employees.
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The strategy can be adopted to remove risk from work place so that employee can work in risk
free environments. Hence, it shows that companies are adopting employment as a human
resource management strategy.
According to Luiz, 2011, the relations as well as the involvement of the employees and
the standard performances of their work life, play a part in the showcasing of the employees’
utilisation of the work-related groups that are autonomous and this is also part of the solutions to
improving the working conditions of the employees. The management of the human relations
showed the importance of considering the intrinsic needs of the employees that include the needs
for communication and interactions. Human resource management strategies may include
employee training, which is also part of the employment regulations in ensuring competency of
employees in the work being done. Employee training has been linked to the achievement of the
company’s goals and strategies. Through training employees are able to build and development
the needed skills in performing their job and thus improving on the company’s general output
and performance. Wooi and Zailani, 2010 is of the view that employee development and training
of human resources in smaller companies involves a significant level of change and
improvement of knowledge, social attitudes and behaviour, employee skills and character.
Inter – relationship of human resource strategies with the employment laws of UK
Globalisation has created a change in the relations of the labour market. These changes
have created the need for flexible regulations and laws that concern labour and employment
relations. This has in turn brought about some challenges to the strategic policies and
frameworks in the human resource management for small companies, who are required to
effectively develop procedures and policies that are favourable to the employees of the company
with the aim of avoiding major losses that are mostly associated with human capital. It is crucial
and important to all the smaller companies to ensure that their employee pay structures together
with the working status and conditions are in line with the employment regulations. This is
important for the companies who strive to achieve employee satisfaction in their jobs.
Lubin and Esty, 2010 states that the personnel in strategic human resource management
believe that smaller companies can utilise the performance and commitment kind of human
resource practices guiding the company’s compliance with employment regulations as well as
the effectiveness of the organisation. According to Gallagher, M., Giles, J., and Wang, M., 2015.
China’s 2008 Labor Contract Law: Implementation and implications for China’s workers.
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Walsh, 2015, the practises of human resource management including employment regulations
and compliance have a direct effect on the skills, behaviour, knowledge, character and
motivation of the company’s employees and this has a major influence on the proximal
indicators that are connected with the performance of the company, which include the
productivity, growth, efficiency, learning and profitability. Additionally, it has also been noted
by Su and Wright, 2012, the practices and strategies linked to human resource in smaller
companies usually have a direct and immediate effect to the companies and this in turn causes
their applicability to be immediate and with the required impact on the company’s employees in
terms of their attitudes, character and behaviour.
In the opinion of Kim, Wright and Su, 2010, the state and federal which govern the
employment laws have a significant effect and shape the field of human resource management.
All the areas of human resource management including recruitment, development, placement and
compensation is governed by the laws and regulations of employment. The strength and
leadership status of the human resource have helped in shaping the dimensions in the
employment regulations and compliance, as well as in moulding the perceptions and attitudes of
the employees. Cattaneo, Gereffi and Taglioni, 2013 argue that good relationships between the
employers and the employees of small companies can lead to a high level of mutual trust, which
will in turn lead to positive outcomes for the company. Managerial support has been established
by author to be a major factor in the management of human resource and its associated
compliance requirements as far as employment regulations are concerned. This is because it is
from the managerial position and support that employment regulations and practices are
complied with in a company including the smaller companies. Additionally, employees’
character and behaviours are also managed and moderated through the support of the
management. Leonidou, Fotiadis and Zeriti, 2013 asserts that support from the management in
smaller companies helps in boosting the attitudes and behaviours of the employees and this
eventually creates an advanced connection between the company’s goals and the employees’
perceptions and attitudes. It is important to note that these attitudes that are to be realised from
the employees are not easy to come by unless the company is able to provide a conducive
working environment that has trust and practices that empower the employees as well as
complying and keeping up with the employment regulatory requirement.
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In this regard, smaller companies need to have a motivation strategy that will motivate
employees, and this can be through the introduction of an effective system of employee reward.
Epstein and Buhovac, 2014 claim that the employee rewarding strategy is only effective when
the human resource and management of smaller companies offers the rewards to the employees
based on employees’ outcomes and productivity. Galbreath, 2010 states that the reward needs to
be given, only when there is a positive significance and value that has been achieved by the
receiving employee as an individual. When complying with employment laws and regulations,
smaller companies should be able to ensure that their employees and their respective needs are
well looked after and this can be through the provision of financial incentives, which have been
established to have motivational outcomes to the employees.
Compliance with employment regulation in the human resource strategies and practices
requires a recruitment process that is transparent and fair to all potential employees and
applicants. The process of employee recruitment should be done in a way that will ensure
effective identification and selection of applicants who possess the required knowledge, job
characteristics, abilities and skills that will enable the company to achieve its objectives.
According to Spohrer and Maglio, 2010 in order to ensure compliance with employment
regulations smaller companies tend to identify and recruit potential employees based on the
needs of the company. This is important as recruitment mistakes can be costly and have a
negative impact on the company.
Positive outcomes can be realised from good relationships between the company and its
employees and this helps in the generation of positive results that include employee loyalty,
employee progressions in their careers and job satisfaction. Davenport, 2013 claim that the
strategies formulated by the human resource with regard to employment regulations and their
compliance by the company may not portray constant benefits. This is because there are a few
employees who have different values and this can affect the existing responsibilities and
obligations of the company. In this regard, such employees will base their input on how they
perceive the stipulated human resource practices regarding their personal or professional benefits
and therefore deliver their services according to the available benefits.
Importance of compliance with the employment laws
There exists an extensive framework of state and federal laws for the regulation of labour
relation and employment. It is important to for the organisations to comply with the employment
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laws and regulations due to numerous reasons including protection of both employee and
employer, economic stability of the organisation etc. There are various laws and regulations that
govern the employment relationship which are crucial to be understood and navigated by HR
professionals in order that heavy penalties and fines are avoided by organisation and also prevent
the potential harm that may be caused to the reputation of the firm. Employment laws are of
greater importance as they provide protection to employees as well as employers within an
organisation. Moreover, they offer benefits to society and economy as a whole on both finamcial
and inter – personal levels at a larger scale.
In the opinion of Bos‐Brouwers, 2010, most employer and employee act under the
relationship of master and servant. Employees are required to perform duties as per the
instructions of employer and for the good of the employer. However, if there is no monitoring on
the actions of employer, they may misuse their powers and exploit employees. There are several
laws in UK related to employment contract, equality and discrimination, working time
regulations, minimum wage which seeks to balance the master – servant relationship in order to
ensure that there is no abuse or discrimination against the employee. On the other hand, Cooke,
2011 asserts that the purpose of labour laws is not to abolish the master servant relationship but
to enhance equality and ensure that all the individuals get the equal opportunity to enter into such
a relationship. Moreover, in capitalism, the key principle is that most of the businessmen should
engage in commerce with the aim to earn profits. In this context, employment laws provide for
protection of rights of employers such as they have the right not to hire person who do not
possess required qualification and skills. They have the right to expect that employees perform
their duties and comply with the rules of the organisation. Thus, the laws protect the productivity
of employers and their profits and enable them to survive in the competitive market place.
Kramer and Porter, 2011 states that like any other laws, labour laws are also reflection of
dominant values which is created by the people within the society. In this context, anti-
discrimination laws are based on the socio-equality principles that there should be equal and fair
treatment to all. Additionally, child laws are established by keeping in mind the idea that
children should not work under certain conditions and also they are not matured enough to
understand all the contracts and tasks related to employment. Thus, it is essential to comply with
the employment laws as they are based on the underlying principles of society and ensures
preservation and stabilisation of overall value system of the society. On the other hand, Monk
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and Wagner, 2012 opines that labour laws are crucial for the economic stability as they preserve
the rights of the employer to earn profits and rights of employees to get compensation. Periods of
economic growth is directly linked with the success of the businesses which reflects employees
who earning enough to act as active consumers in the economy. Moreover, during the periods of
economic recessions, there are changes in employment laws and laws on operating procedures in
each industry.
For smaller companies and this is also true for larger companies, it is important to be
compliant with employment laws in order to prevent employees from leaving the company due
to dissatisfaction, unfairness and work related grievances that have not been solved by the human
resource management. Susanto, Almunawar and Tuan, 2011 states that when employees are
satisfied with their work performances and conditions, then it is unlikely that they may consider
options that require them to leave the company.
The growth of smaller companies is important and it is mostly dependent upon the human
resource strategies and the power possessed by these companies in competing with the larger
companies at the global market levels (THE HR FUNCTION’S COMPLIANCE ROLE, 2017).
When the smaller companies are able to comply with employment laws and in addition to this,
they are also able to record significant amount of business growth, then it is unlikely that the
company no matter how small, will end up being closed.
Therefore, it is very important for the smaller companies to be strengthened in terms of
compliance standards as well as for the sake of the economic standards that underscores the
variety of the services and products being produced by the smaller companies. Non-compliance
with employment laws and regulations is likely to lead to an increase in employee related cases
and grievances, which are expensive to the smaller companies and thus end up causing the
smaller companies to fail in the expansion of their businesses and when this happens, most of the
smaller companies cease to grow business wise. Thus, companies of all sizes should stay abreast
of regulatory and legislative development concerned with employment for the growth and
development of the organisation, society and economy.
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