Importance of Employment Law in Business Law

Business law is one of the branches in the field of law. Whether it be a large business or small business one has to keep few things in mind while starting it. There are different laws that rule the employment basis of both contract and regular employees of a business.

The complexity of employment law makes it hard for businesses to keep up their responsibilities.
The ever changing nature of law makes it difficult to know what should be done in order to make sure that your company is protected against any legal action. However, it is necessary for an employment counselor representing an employee as it quickly spot gaps in your procedures.

Few employment business laws which are crucial are:

  • The immigration reform and control act of 1986
  • Fair labor standards act
  • Civil rights act of 1966
  • Americans with disabilities act
  • The equal pay act of 1963

Employment law preserves the employer rights to profit and the right of the employee to compensation that can be invested and spent, labor laws are essential for a healthy economy. Working time regulation states that an employer can make their employees work not more than 48 hours per week unless the employee opts out the the 48 H week. Before recruiting, employer should refer the employment law and make sure that they are up to date with all aspects.

Common areas in which companies fail their employment law constraints

  • Dismissal and disciplinary procedures
  • Dismissing and disciplining employees is something that is not acceptable to think about but is an important part of any business.
  • In order to be protected legally, you must be able to show that your company had a valid reason for dismissing and also you need to prove that the reason is indeed the true cause of action.
  • Besides, your disciplinary procedures must show that your company acted through out the process, by following the statutory procedures.


  • The equality act 2010 was kept forward to make sure that all employees are treated at all stages of the employment process including the performance appraisal, promotion, contract length, dismissal along with interview and appointment.
  • This act lists several characteristics commonly cited by employees making discrimination claims such as religion, age, disability, race, gender and marital status.
  • All businesses must know how to make sure that they clear of discrimination claims.
  • Even with such systems in place it depends on your organization to ensure that these are implemented and held.

There are numerous laws, and one of the mode to avoid falling into any trap would be to seek the help of some professional business law firm.

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