PowerPoint presentation Unit 320 (B&A 59): Principles of business Handout 2: Legislation

National Minimum Wage Act Equality Act Employment Rights Act Legislation National Minimum Wage Act Equality Act Employment Rights Act Working Time Regulations Act Data Protection Act Human Rights Act Health and Safety at Work Act All organisations have to comply with this legislation.

National Minimum Wage Act Sets a minimum hourly rate of pay for workers: aged 18–20 aged 21+.

Equality Act 2010 Protects people from discrimination and incorporates the following previous legislation: Sex Discrimination Act 1975 Race Relations Act 1976 Disability Discrimination Act 1995.

Protects against unfair dismissal, redundancy Gives time off for parenting Enforces a minimum wage Monitors conditions for agency workers Employment Rights Act 1996 5

Working Time Regulations 1998 Protects you from being forced to work long hours. You cannot be forced to work more than an average of 48 hours (including overtime). Your employer must maintain records that show the hours you work. They can ask you to ‘opt out’ of this agreement and ask you to work above this limit of 48 hours. Also allows for employees to have: 11 hours’ rest in every 24 worked and a rest period of 24 hours in every 7 days a 20-minute break when working more than 6 hours 4 weeks’ paid holiday each year. This 48 hour maximum working week is calculated as a maximum average working time of 48 hours over seven days. This is normally worked out over a period of 17 weeks. So you work out the average hours you have worked each week by adding up all the hours you worked in a 17 week period and then dividing them by 17. If you chose to opt out you can at any time (within a specified period of notice) chose to terminate this agreement and return to working 48 hours or less. If you do chose to opt out, a copy of your agreement must be kept and a record of the hours worked retained. Employers can specify that certain days are included in the minimum paid leave of four weeks, such as bank and public holidays. It should be noted there are specific regulations for those workers who are aged 15 to under 18. Within this category there are differences from the above. For example, the rest period of 11 hours in any 24 hours is raised to 12 hours in any 24 hours and they must also receive 2 days off in any week. They also must receive a 30 minute break when working more than 6 hours. 6

Also covers any expression of opinion about the individual. Data Protection Act 1998 Protects any living, identifiable individual from misuse or unauthorised disclosure of personal data. Also covers any expression of opinion about the individual. Covers both paper and computer files. Organisations holding personal data need to register with the Office of the Data Protection Commissioners. Individuals have the right to access and read the data held on them for a fee. The Data Protection Act 1998 has been written to protect any living, identifiable individual from the misuse or unauthorised disclosure of personal data. The term personal data also covers any expression of opinion about the individual. Organisations holding personal data require now to register with the Office of the Data Protection Commissioners and pay the current annual fee. Under the Data Protection Act, data is classed as: Information recorded or processed by a computer Information recorded as part of a relevant filing system or with the intention of being part of a filing system or which forms part of an accessible record eg health records Failure to register is a criminal offence. All organisations must comply with what are known as the eight Principles of the Data Protection Act The Act states the amount of information that may be held, how long it can be held and what it may be used for. 7

Principles of the Data Protection Act Must be obtained and processed fairly and lawfully. Will be obtained and used for only one or more specified and lawful purpose. Should be adequate, relevant and not excessive. Should be accurate and up to date. Should be kept no longer than the purpose(s) requires. Data subjects (individuals) have the: right to prevent processing which would cause damage or distress right to access data held about them right to prevent processing for direct marketing purposes right to compensation if damage is suffered as a result of the Act not being followed. All data must be obtained and processed fairly and lawfully ie that the individual has given consent and has not been misled Personal data will be obtained and used for only one or more specified and lawful purpose and should not be processed for any other purpose Personal data should be adequate, relevant and not excessive Personal data should be accurate and where necessary kept up to date Personal data should be kept no longer than the purpose(s) requires Data should be processed in accordance with the data subject’s (individual’s) rights, these being eg the right to access held about them; the right to prevent processing which would cause damage or distress; the right to prevent processing for direct marketing purposes; the right to compensation if damage is suffered as a result of the Act not being followed There are exemptions to the Act eg if the exemption is required for the purpose of national security but generally organisations holding personal data must register with the Information Commissioner’s Office. The Act exists to protect you and ensure your personal data is not misused or passed on to others inappropriately. 8

Human Rights Act – respecting human rights and freedom Covers the right to: life fair trial liberty and security privacy freedom of thought and expression freedom of assembly marriage. Prohibits: discrimination torture slavery abuse of rights.

Covers organisations in the private sector: formation governance Companies Act Covers organisations in the private sector: formation governance auditing procedures accountability. Formation – registering of name, number of directors required, the format of the Memoranda and Articles of Association which document what the company comprises and how it will be run. Governance – eg holding of shareholder meetings, passing of resolutions, election of directors Auditing procedures Accountability – eg the publication of accounts or submission of annual return, access to register of members

Health and Safety at Work Act 1974 Details the responsibilities of: employers management staff visitors external contractors. Legislation is in place to ensure that all working environments are healthy and safe for all who work in them or visit them. The main legislation in place is the Health and Safety at Work Act 1974 and it applies to all workplaces 11

Other health and safety legislation Reporting of Injuries, Disease and Dangerous Occurrences Regulations (RIDDOR) 1992 The Management of Health and Safety at Work Regulations 1999 Workplace (Health, Safety and Welfare) Regulations 1992 The Health and Safety (Display Screen Equipment) Regulations 1992 The Provision and Use of Work Equipment Regulations 1998 Other health and safety legislation While the main legislation is the Health and Safety at Work Act 1974, there are other regulations that are passed to make sure that health and safety laws are kept up to date and improved. Examples of these are: Reporting of Injuries, Disease and Dangerous Occurrences Regulations (RIDDOR) 1992 – this covers the reporting of accidents/incidents which cause injury or disease. It covers what should be reported and how, and the investigation that should take place. The Management of Health and Safety at Work Regulations 1999 – this covers risk assessment and the monitoring of health and safety. Risk assessments analyse the hazards that exist in the workplace and assess the likely risks from them (low, medium or high) and details how the risks can be minimised or eradicated. Workplace (Health, Safety and Welfare) Regulations 1992 – this covers the condition of the workplace you are expected to work in, complementing the Health and Safety at Work Act and offering more detail. The Health and Safety (Display Screen Equipment) Regulations 1992 – this covers what is necessary to make the use of computers (recognised as VDUs – visual display units) and the workstation you work in safe and comfortable. The Provision and Use of Work Equipment Regulations 1998 – these regulations cover equipment in use in your organisation and require your employer to ensure that the equipment you use is suitable, safe and properly maintained and that you receive the required training on its use. 12