GRADE 9

BUSINESS

Chapter 19-Legal
Controls over
Quote:
Employment
Challenges are what make life interesting. Overcoming them is what
makes life meaningful. – Joshua J. Marine
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 Learning Objectives
• Discuss the nature of equal opportunities
legislation (gender, race, disability, religion,
sexual preference and age)

• Explain the nature of minimum wage

legislation and its impact on businesses.

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Legal controls over employment
• Government often pass legislation to protect people at work.
Reasons are businesses may exploit their workers. This include:
 Pay low wages
 Make workers work long hours
 Deny them employment rights
 Expose them to danger
 Discriminate against certain groups or dismiss the unfairly

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 What are equal opportunities?
• If a business chooses a person because ther are more skilled
and better qualified than another, this would be legal
otherwise its discrimination which is illegal.
 Examples of legislation to protect groups from discrimination
include:
1. Gender
• Gender discrimination/sex discrimination occurs when a for
instance, a woman in the workplace does not receive equal
treatment because she is female.

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Gender discrimination

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 Continuation...
 Examples of gender legislations include:
(a) The Sex Discriminatio Act-It states that a person must not be
discriminated against because of their gender.
 Examples on how it will affect businesses
 Advertisements for jobs must not specify a particular gender
 References to work titles in jobs must be genderless
 Promotion must not be based on gnder
(b) The Equal Pay Act-It states that an employee doing the same
job as a member of staff of the oppositie sex is entitled to
equal rates of pay and working conditions.

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 Continuation
2. Race and religion
• Businesses must ensure that they do not discriminate on
grounds of colour, race, ethnic origin, religion or nationality.
 Examples of the effects of race legislation on businesses may
include the folowing:
 Businesses cannot prevent employees from wearing ethnic or
religious dress.
 The use of selection tests do not discriminate against people
of minority backgrounds.
 Businesses must take into account the religious holidays of
ethnic groups

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Sikhs Turbans

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Muslim Religious dress

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Race discrimination

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 Continuation
 Businesses cannot refuse to employ people from particular
ethnic or religious groups.
 Workers must receive awareness training to encourge
equality of treatment and prevent racial harassment.
Note:
 The Race Relation Act-It makes it illegal to discriminate on
grounds of race.
3. Disability
• Protection in the workplace exists in many countries for
people with disabilities.

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 Continuation
• Employers are now obliged to make reasonable adjustments
to their working practices and work environment to help
accommodate disabled employees. Examples include:
 Improve access to the workplace by widening doors and
providing ramps for wheelchairs.
 Allow disabled workers time to attend medical appointments.
 Allow more time for training.
Note:
 The Equality Act-It makes it unlawful for businesses to
discriminate on the grounds of disability.

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Wheelchair Ramps

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 Continuation
4. Sexual preference
• Discrimination against people on grounds of their sexual
preference is illegal in some countries. However, in other
countries they may be criminal offence. Examples include:
Lesbian, Gay, Bisexual, transsexual and intersex
5. Age
• Age descrimination in the workplace occurs when a business
decision is made on the grounds of a person's age.
• Also, older workers are more likely to take up part-time work
and receive less training.

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 Continuation
 Examples of the possible effects on businesses of such
legislation include:
 It would be illegal to not to offer a job to someone on the
grounds of age.
 Businesses should take measures to prevent older workers
from being harassed in the workplace
 Businesses cannot refuse promotion or training on the
grounds of age

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 Continuation
 Finally, if businesses fail to prevent discrimination in the
workplace they may:
 Be involved in expensive legal battles.
 Fail to recruit or promote the best staff for the post.
 Demotivate certain sections of the workplace.
 Create unnecessary tension or conflict between employees.

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 Minimum wage laws
• Legal minimum wage-This involves passing legislation that
means no employer is allowed to pay their workers an hourly
rate below the limit set.
 There are three reasons why governments set legal minimum
wages
 To benefit disadvantaged workers.
 To reduce poverty.
 To help businesses.

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 Effects of minimum wage on businesses
Negative effects to businesses
 Wage bill will rise if a minimum wage is introduced
 It will lead to fall in demand for labour hence causing high
unemployment
 It will encourage businesses to replace labour with capital.
However, not possible for some businesses e.g. fast food
chains.
 Some businesses will relocate to other countries where
labour is cheaper.

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 Effects of minimum wage on businesses

Benefits of minimum wage to businesses

 Increase in wage will lead to motivation and prductivity
resulting from introduction of minimum wage.
 Introduction of minimum wage for low wage which means
disposable income will icrease leading to high demand for
goods and services. Therefore, sales and profits of some
businesses will improve
 Businesses may experience lower rates of staff absence and
better reliability if the introduction of minimum wage
improves their wage.

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