Summary
Governments adopted different laws and regulations to determine relationships between employers and workers, protect consumers, prevent corruption, and promote a secure work environment. The principal purpose of employment law is to defend employees from various forms of labor exploitation, discrimination, and harassment. It guarantees the fundamental employee rights concerning recruitment, pay, healthcare, training, and working conditions. This discussion board post aims at considering the benefits and disadvantages of employment law for running a business.
Advantages
Despite the obligations employment laws imposed on companies, they also assist entrepreneurs in conducting their businesses diversely. For example, employment laws guide employees on how they should treat workers and define legal and ethical behavior towards them. This frequently helps avoid various litigations and trials or settle conflicts or misunderstandings without appealing to the courts. Furthermore, managers’ adherence to regulations often inspires and motivates employees and ensures a high employee retention rate. Observance of laws favorably reflects on the relationships between companies and customers and increases a company’s reputation. Prokopidis (2021) indicates that ethical behavior directly impacts the success of an organization’s marketing plan. Finally, equity in the workplace guaranteed by employment law lessens the risk of industrial strikes and unrest and contributes to employees’ performance.
Disadvantages
On the other hand, employment laws inflict additional costs and responsibilities on companies, which can be burdensome, especially for small-size businesses. For instance, firms should pay workers during maternity leave, herewith hiring a temporary employee. Employee training is also sometimes a source of concern for managers, requiring extra expenditures. Besides, employers should hire staff that monitors and controls the observance of employment regulation requirements. In case of a violation of the law, a business can be brought to responsibility and experience a considerable loss for its budget and reputation. Even if the lawsuit is won or settled, it takes much time and effort and may strike the company’s image eventually.
Reference
Prokopidis, V. (2021). Business ethic and industrial marketing-fair trade and ethical business behavior as pylons of a successful marketing plan in the industry [Master’s thesis, University Center of International Programs of Studies School of Science and Technology]. International Hellenic University.