1. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B111/078 – BDA 1

2. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B111/078 – BDA 2

3. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B111/078 – BDA 3

4. Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B111/078 – BDA 4 BUSINESS DECISION AREAS Human Resource Management (HRM) Legislation

5. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 5 Human Resource Management 5.Legislation B111/078 – BDA – HRM

6. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 6 5. Legislative Requirements CONTRACT OF EMPLOYMENT A contract of employment is given to an employee when he/she starts a new job – it is a legal requirement. This contract will detail the terms and conditions of employment and will contain: title of the job holiday entitlement sickness pay and allowances discipline and grievance procedures start date of employment hours of work rate of pay/regularity of payment pension provision notice arrangements any additional provision B111/078 – BDA – Legislative Requirements

7. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 7 One of the major terms and conditions relates to payment for work (salary/wage). A salary is an annual amount which is paid monthly. A wage is an hourly amount which is normally paid weekly or monthly. 5. Legislative Requirements - continued B111/078 – BDA – Legislative Requirements

8. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 8 WAGE RATES Time rate Employees are paid for every hour that they work. Piece rate Employees are paid for the number of items (pieces) they produce. This normally applies to ‘manufacturing’ businesses. 5. Legislative Requirements - continued Flat rate A fixed salary per annum divided into 12 equal payments. B111/078 – BDA – Legislative Requirements

9. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 9 WAGE RATES - continued Bonus payments Employees are paid a one-off amount, normally because they have performed well for the business and the business has made sufficient profit. A group bonus is paid when a team of workers achieve their target. An individual bonus is paid when an employee has reached his/her target. 5. Legislative Requirements - continued Overtime payments Extra hours are worked and paid for at a higher rate than time rate. B111/078 – BDA – Legislative Requirements

10. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 10 OTHER CONDITIONS HOLIDAYS Employees are entitled to a set amount of holidays throughout a year. This amount will vary between different professions and will often depend on the length of service. 5. Legislative Requirements - continued B111/078 – BDA – Legislative Requirements

11. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 11 OTHER CONDITIONS - continued SICKNESS Employees must provide a doctor’s certificate for illness beyond 5 days. Employees in some professions will be paid during illness at full rate for a period of time/half rate for a period of time. 5. Legislative Requirements - continued B111/078 – BDA – Legislative Requirements

12. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 12 LEGISLATION HEALTH & SAFETY Health & Safety at Work Act 1974 Workplace Health & Safety Act 1995 The Employer and Employee share responsibility for the health and safety of all within the organisation. 5. Legislative Requirements - continued B111/078 – BDA – Legislative Requirements

13. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 13 Employer’s responsibilities: That employees work in a safe environment. That property and machinery is properly maintained. That hazardous substances are stored and used correctly. That staff are fully trained to perform their job. 5. Legislative Requirements - continued HEALTH & SAFETY - continued B111/078 – BDA – Legislative Requirements

14. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 14 HEALTH & SAFETY - continued Employee’s responsibilities: To behave in a reasonable and responsible manner. To take responsibility for their own actions. To inform management of any potential hazards. To undertake appropriate training. 5. Legislative Requirements - continued B111/078 – BDA – Legislative Requirements

15. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 15 OTHER ACTS IMPACTING ON EMPLOYERS AND EMPLOYEES INCLUDE: Equal Pay Act 1970 Sex Discrimination Act 1975 Race Relations Act 1976 Disability Discrimination Act 1995 National Minimum Wage Regulations 1999 5. Legislative Requirements - continued B111/078 – BDA – Legislative Requirements

16. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 16 OTHER ACTS IMPACTING ON EMPLOYERS AND EMPLOYEES INCLUDE: Equal Pay Act 1970 5. Legislative Requirements - continued The same wage/salary, holiday entitlement, sick leave must be given to employees for doing the same job regardless of any other circumstances ie gender. B111/078 – BDA – Legislative Requirements

17. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 17 Sex Discrimination Act 1975 5. Legislative Requirements - continued This Act states that it is unlawful to treat men and women differently within the workplace in terms of employment, training, promotion and recruitment and selection. Race Relations Act 1976 This Act states that it is unlawful to treat any person differently on the basis of their race, colour, religious denomination, sexual orientation or nationality. B111/078 – BDA – Legislative Requirements

18. Business Management - Intermediate 2Business Decision Areas – HRM © Copyright free to Business Education Network members 2007/2008 18 Disability Discrimination Act 1995 5. Legislative Requirements - continued This Act states that it is unlawful to treat any individual differently within the workplace. B111/078 – BDA – Legislative Requirements