Economic Regulations & Law
Briefly explain why employment law is necessary in a market economy.
Employment law is a crucial element which is required in today’s economy providing a basic structure to shape a relationship between an employer and the employee from the moment an employee is interviewed for a job until the moment they leave. This relationship is formed through a contract of employment.
Under s 1 of the Employment Rights Act 1996 employers are obliged to provide their employee’s with a written statement outlining the key terms of their contract. This statement includes specific information, from the amount of pay an employee is entitled, to the length of notice required to be given to and by the employee. (Adams, 2012, p.381)
It also outlines specific duties that obligate both the employee and employer to show mutual respect for one another. The employee should obey lawful and reasonable orders and the employer should pay wages on time. These are just a few obligations covered under the act which gives protection to both employers and employees.
The law also outlines specific statutory provisions which are contained throughout a vast amount of acts and regulations, one example being the Working Time Regulation 1998. The regulation specifies that an employee can work a maximum of 48 hours in a week, have at least four weeks paid annual leave, a daily rest period of at least 11 consecutive hours in 24 hours, and they are entitled to a weekly rest period of at least 24 hours in each seven-day period. (Keenan & Allen, 2009, p.514)
Health and safety is also covered within employment law under the Health and Safety at Work, etc Act 1974. It specifies under s 2 that it is the employer’s duty to carry out reasonably practicable precautions to ensure the health, safety and welfare of their employees’.
Under s 7 the act also specifies that it is the employee’s duty to take reasonable care for...