Management of People: Legislation

Management of People: Legislation

Definition

  • Legislation refers to laws or regulations enacted by a government.
  • In the context of business management, legislation can shape and influence an organisation’s policies on managing people.
  • This includes laws relating to employment rights, privacy, equality and discrimination, health and safety, and more.

Importance of Understanding Legislation

  • Ensuring business compliance: Following legislation helps businesses avoid fines, penalties, and damage to reputation.
  • Promoting fair treatment of employees: Laws exist to safeguard employee rights and promote fair and respectful treatment in the workplace.
  • Encouraging diversity and inclusion: Legislation like the Equality Act helps prevent discrimination, creating a more inclusive work environment.
  • Prioritising health and safety: Health and Safety laws enforce safe working practices, minimising the risk of workplace accidents.

Key UK Employment Legislation

  • The Equality Act (2010): Protects people from discrimination in the workplace and in wider society. It prevents unfair treatment based on protected characteristics such as age, gender, ethnicity, etc.
  • Employment Rights Act (1996): Covers a broad range of employment issues, including fair wages, redundancy, and dismissal.
  • Health and Safety at Work Act (1974): Ensures that employers provide a safe and healthy working environment.
  • Data Protection Act (2018): Regulates how businesses handle and process personal data, which is crucial for managing employee information.

Impact of Legislation on Business Management

  • Affects recruitment practices: Laws influence how job advertisements are framed, how interviews are conducted, and how employees are selected.
  • Shapes employee contracts and handbooks: Legislation influences the terms and conditions laid out in employment contracts.
  • Guides organisational policies and procedures: Businesses establish procedures relating to health and safety, equal opportunities, and data protection, among other things, based upon the relevant laws.
  • Encourages ethical business practices: Laws require businesses to act responsibly and ethically in their handling of employees, customers and stakeholders.
  • Keeping up with changes: Laws and regulations frequently change, and businesses need to stay updated to remain compliant.
  • Interpretation of the laws: Some laws may be open to interpretation, which can cause confusion and potential legal disputes.
  • Costs of compliance: Implementing necessary changes to comply with new legislation can be costly.

Understanding legislation is essential for anyone involved in managing a business or its employees. It helps ensure that the business operates within the legal framework, upholds employee rights, maintains a safe and healthy work environment, and promotes ethical business practices.