Analyzing Impact of Employment Law on Business & Corporate Governance

This essay examines the impact of employment law on business operations in the United Kingdom, focusing on the legal environment for entrepreneurs and the role of the Companies Act 2006. It discusses how employment law protects both employers and employees, covering aspects such as contracts, minimum wage, and the Equality Act 2010. The essay also highlights the importance of health and safety laws, including risk assessment, worker training, and regular health check-ups, as mandated by the Health and Safety at Work Act 1974. Furthermore, it addresses the responsibilities of employers in providing a safe working environment, managing health and safety regulations, and the potential consequences of non-compliance, including prosecution and compensation claims. The essay concludes by emphasizing the significance of employee welfare and the implementation of protective equipment regulations to mitigate workplace risks.

Impact of Employment
law on Business and
evaluation of the
responsibility of
corporate governance
on business operations
Table of Contents

INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law of the United Kingdom introduces the legal environment to the
entrepreneurs who has an interest to run their own business in country or even outside the
country. The UK has comprised of three separate jurisdiction i.e. England & Wales, Scotland and
Northern Island, very similar laws were apply in these jurisdiction. The companies or business in
UK is govern through the Companies Act 2006, it means the rules and regulations by which the
business can be run legally and effectively is given under the act of companies of 2006. The
company law is divided into 16 schedules and in company law of UK the rules were framed into
1300 sections. Under company law several provisions were given regarding to run the business
in UK or outside the boundary of United Kingdom, it also prescribed the duties of the Director's
who own the business, the procedure of the director's appointment, the removal, remuneration
and also there are provisions for the shareholders of the company under company law. In this
essay, the impact of Employment law on Business will be discuss and also the responsibilities of
corporate governance on business operations(Berns,2018).
TASK
At first sight, the employment law can be seen very complex and different for the
business owners. However, the employment law is framed to protect the business, to protect the
rights of the employees as well as the rights of the employer's(Eckert,2018). The employment
law was framed by keeping fair thinking for both i.e. the employer's and for the employees too.
Before, entering into the business the contract has been signed out between the employer's and
the employees regarding the holidays, discipline and the notices period(Harper Ho,2018). The
contract formation helps the employer's because the clarity has been given to the employees
regarding the policies of the business or the company, on the other hand in the UK employment
law the protection is given to the employees regarding the conduct in the workplace and also
equal pay for equal work. For example, In UK, businesses have to pay the National Minimum
Wages to the employee's according to their age, and the employees who were above the age of
23 are entitled to the National Living Wage(Kenny,2019).
The employee's got covered from the moment, they enter in to an agreement with the
employer under the Equality Act, 2010 which prohibits the discrimination of any kind between

the employee's, such as; on the basis of gender, race, religion or disability. The employer's has a
duty to guard the physical health of the employee's, its a basic duty of the employer's towards
their employees. The employee's eventually get the protection by Health and safety laws
prescribes under the “Health and safety at work Act” of 1974, it ensures that all the employee's
have a right to do the work in that working place which have safe working environment.
According, to this act the employer's have some duty towards the employee's to protect the
health of the employee's, such duties are given in the act of 1974;
Assess Risk- under the act its the duty of the employer to assess the level of the risk in the
workplace. It means to check out the possible way which cause injury to the employee's and take
the action to remove the risk(Loft,2020).
Trained the workers- it's not enough to make the employee's aware about the risk, the
employer's has to give trainings to the employee's or the workers if there is any risk while
working in the workplace then, what action they will take to safe themselves and also safe the
others.
Regular physical check up- after, providing the training to the employee's its a duty of
the employer's to provide the regular health check up to the employee's. Consultation must be
taken regarding the health issues of every worker in the company(Yang, 2020).
Provide health and safety information- in every company where there is a relation of
employer and employee , the employer has a legal duty under the Health and safety information
for employees regulations(HSIER), to display the approved information in such a place which is
easily seen by the employees like at workplace or it is better to provide that information to each
and every employee.
Under the common law, which creates the civil liability to the employer to take
reasonable care for the health and safety of the employees, including the physical as well as
mental health. It's the duty of the employer to to take some positive steps to ensure the safety of
the employee's in the light of the information they have. It is important to seek attention for an
individual. For the protection there is common law duty of care, such as;
The employee's got injured mostly at workplace while using the equipments and
machinery. It becomes the duty of the employer to provide the safe plant and equipment to the
employee's which reduces the risk of the injury and also increases the chance of profit in the
company(Stohl, 2020) .

It's a duty of the employer's to allot the safe work to do to the employee's. Sometime the
employer give such work to their employee's which is hazardous for their health. For example, in
the factory of glass the employees were engage to perform such activities which is harmful foe
their health and also because the factory is in dark areas where there is no sunlight, which affect
the mental health of the employee's. It will become the responsibility of the employer's to
provide the safe system of work which can be done by the employee's(Vollero,2020).
Not everyone can do the different type of work, the employee's are selected to perform
the particular work in which the employee has a specialisation or has a knowledge about the
work, its really important to recruit such employee's who has competent to perform the work.
When the person talk about the health and safety, they usually think about the physical
health and safety. In place like an industry where the employee's were engaged to perform such
work in which there is a risk of physical injury, like in a glass factory, boarding companies
where the load has been loaded and unloaded by the workers, sometime the machinery of an
industry is not in working condition and it got hurt the employee's without any negligence of the
employee, while performing such activities or duties there is a risk to get injured physically for
that time it is required from the employer's to provide proper treatment to the injured ones and
also give them a time to get relax at home and also give them a compensation for their
injury( Siano,2020). If the employer's got failed to provide safe working conditions for their
employees, it will arise the rights of the employee's to get the claim against the employer's. The
health and safety laws are enforced by the HSE, in this HSE inspectors are appointed to
investigate the whole incident and after reaching to the certain point which proved that due to
negligence of the employer the employee got physical injury, such action can taken by the HSE
inspector; the work operations of the industry should be stopped, usually the compensation
should be given to the claimant for the loss occurred but, when the loss is too serious like
someone loose the life due to negligence of the employer then, the criminal proceeding should
get start against the employer and there they have to proof their part of action of taking
precautions to control the incident(Palazzo, 2020) .
In the Health and safety at work act 1974, there is a provision for the welfare of the
employee's, the employee's were not only injured physically but sometime due to some incidents
at workplace where they got mentally damage like no bonus, no leaves, hard work, no
compensation, less wages these are some reasons which would put the employee's in a stressed

situations, to make the employee's overcome with the stressed situation the employer's has to
create such environment in the company which helps the employee's to get comfortable and also
the employer's has to organise such activities which make the mind fresh of the employee's like
to give them special bonus on any festival, allow them to take leave, provide gifts sometime etc.
This well being activities make impact on the employee's and it will motivate them, and also it
will improve their efficiency( Amabile, 2020).
The Health and safety at work act determines the actions of the employer's to follow the
rules and regulations to protect the employee's from the exploitation as well as to provide the
health and safety recommendations to the employee's or provide the measures to protect them in
a physical or in a mental injury. In the act the obligations of both were cover i.e. of the employer
and of the employee's and it got placed in section 2 and section 7 or 8 of the act. In 2018, the
regulations got passed known as “Personal protective Equipment Regulations” which operates
in dangerous environment where the level of risk is very much high. It's a duty of the employer's
to provide the PPE if, the injury can't be stopped through other methods, and in any organisation
or industry the PPE is a last method by which the high level of risk could be diminish. Prior to
send the worker at hazardous workplace, the level of risk should be communicate with the
employee's and also the way to act if the high level risk situation occurs. The main examples of
PPE are; hard hats, high-visibility jackets, protective eye wear, safety harness, steel toe cap boots
and the most important respiratory equipments.
In, each and every organisations there are some issues like personal issues,
payroll,finance etc. in the health and safety also there are some issues. The Management of
health and safety at work regulations(MHSWR) 1999, also have a provision for the employer's
to make arrangement's of health and safety and also there is a procedure to meet the legal
requirements. In the Management of health and safety at work regulations(MHSWR) 1999,
there such regulations; assessment of risk should be done and according to that the risk will
identify and then, the action would be done to remove the risk, appointment of such a person
who supervise the workplace health and safety, there is a provision to inform the employee's
about the risk and also provide the training to them, the health policy should be signed which
helps the employee's at the time of injury occur.
There are some factors in which the prosecution will include, when no actions or
measures will be taken to stop the risk of injury;

The prosecution will start against the employer's if, they breach the rules of the
legislature and due to that breaching of the rules, the death has been occurred of an employee, If
there is any disregard of the health and safety requirements, if the breaches has been repeated by
the employer's and as a result it gives the significant rising of the risk or there is no compliance
by the employer's, the standard of the organisation is found to be very low as compare to the
standard of the Health and safety laws and this will increase the risk, if there is any notice was
served to the organisation regarding the health and safety but, no compliance has been done on
that notice etc. in these situations the organisation or the employer's have to face the proceedings
against them.
When the organisation or the employer's were found to be in a continuous fault of not
obeying the requirements of health and safety then, the notice has been issued through the Health
inspectors and the organisation has to show the improvement in the measure of health and safety,
when, the notice has been served to the employer's or to the organisation then, the court has
order the employer's to do the modifications in the health and safety measures. The notice which
has been issued to the organisation in that notice, the area of breaching was describe according to
the health and safety law for example if there is negligence occurred by the organisation to
provide the training then, it would be mention in the notice, in that notice only the employer has
to comply the breach in the given time.
There is type of notice also “immediate notice” and the “deferred notice”, sometimes due
to some irregular activity the risk of serious personal injury has been arise then the notice has
been issue known as “Prohibition notice”. In the immediate notice the activity has been stopped
immediately until risk is reduced for example the electricity current was spread due to the lack of
trained employee's. Through the deferred notice the activity has been stopped within the
specified time limit given in the notice(Loukil, 2022) .
The time of Covid for the industry was in great loss, at that time the worker's were not
able to do the work because of the social distancing and the guidelines of the Covid which is
mentioned to do the work from home which is not possible, the mental health of the workers got
damage due to not doing the work and the employer's were not paying them for sitting at home,
after the Covid there is a challenge for the organisations to keep the workplace clean and safe
and also clean the equipments.

Under the Employment law, the health and safety provisions are covered to protect the
employee's from the exploitation and also safeguard the employees from the hazardous activities
in the organisation and also provides the measures to protect themselves from the difficulties like
the unfair dismissal, discrimination etc(Kammoun,2022).
The companies can be run successfully only when the companies were directed and
controlled in the proper manner or through the proper corporate governance, the purpose of the
corporate governance is to give the long term success to the company. Good corporate
governance include the regular meeting, risk assessment, reduce the corruption, the board of
director's will meet regularly, every member of the company will aware about their duties due to
which there is no confusion in the company. Corporate governance played an essential tools in
the management and growth of companies, all the companies will try to improve the quality of
their corporate governance to improve the functioning of business(Kenny, 2019).
Everywhere, the people were engaged into structures, where the structure is in mixed
obligations to owners, customer and staff there, the concept of corporate governance is highly
relevant. Its a universal process which is used in the earlier time at 1900s to know the position of
the business and also make aware about the corporate risk, the corporate governance is use by
the small business as well as the very biggest organisation. It means to run the business with all
the responsibilities and to perform the operations of management according to the time is a part
of the corporate governance. The corporate governance benefits are infinite, some of the benefits
are; with the help of corporate governance the compliance of rules and regulations of the region
in which it operates, it increases the efficiency while seen the existing process of the business
and fin the ways to make the business operations more efficient, with the help of corporate
governance the risk can be identified, corporate governance gives the quality to make better
decision's etc. There are many companies that achieved the long term success with the help of
good corporate governance for example; the drinks company known as Diageo, which has the
transparent remuneration policy,it promote the code of business conduct etc.
Effective corporate governance in the competitive market gives the companies a long
term success, its a process to give competition to the available competitors, it gives the healthy
competition.

CONCLUSION
Employment law plays a significant role in the life of the employer's as well as for the
employee's, and not only it will helpful for the workers or the employers, indirectly it will help
the whole organisation to grow in future. In the above essay the importance of employment
would be discussed, and also the importance of Health and safety in the organisations is discuss,
and the importance of the corporate governance has been mentioned in the above essay that,
what the corporate governance cover and how it is helpful for the growth of the company.

REFERENCES
Books and Journals
Berns, S., 2018. Women Going Backwards: Law and change in a family unfriendly
society. Routledge.
Eckert, S., 2018. Fighting for recognition: Online abuse of women bloggers in Germany,
Switzerland, the United Kingdom, and the United States. New Media & Society, 20(4),
pp.1282-1302.
El-Bassiouny, D. and El-Bassiouny, N., 2018. Diversity, corporate governance and CSR
reporting: A comparative analysis between top-listed firms in Egypt, Germany and the
USA. Management of Environmental Quality: An International Journal.
Harper Ho, V., 2018. Nonfinancial risk disclosure and the costs of private ordering. American
Business Law Journal, 55(3), pp.407-474.
Kammoun, S., Loukil, S. and Loukil, Y.B.R., 2022. The impact of firm performance and
corporate governance on corporate social responsibility: evidence from France.
In Research Anthology on Developing Socially Responsible Businesses (pp. 1084-
1106). IGI Global.
Kenny, K., 2019. Whistleblowing: Toward a new theory. Harvard University Press.
Loft, A., 2020. Understanding accounting in its social and historical context: the case of cost
accounting in Britain, 1914-1925. Routledge.
Lončar, D., Paunković, J., Jovanović, V. and Krstić, V., 2019. Environmental and social
responsibility of companies cross EU countries–Panel data analysis. Science of the total
environment, 657, pp.287-296.
Venturelli, A., Caputo, F., Leopizzi, R. and Pizzi, S., 2018. The state of art of corporate social
disclosure before the introduction of non-financial reporting directive: A cross country
analysis. Social responsibility journal.
Vollero, A., Siano, A., Palazzo, M. and Amabile, S., 2020. Hoftsede's cultural dimensions and
corporate social responsibility in online communication: Are they independent
constructs?. Corporate Social Responsibility and Environmental Management, 27(1),
pp.53-64.
Yang, Y. and Stohl, C., 2020. The (in) congruence of measures of corporate social responsibility
performance and stakeholder measures of corporate social responsibility
reputation. Corporate Social Responsibility and Environmental Management, 27(2),
pp.969-981.