Business Revision Guide: 3.7

• Contract of employment


  A legal agreement between an employer and employee
• Contract of employment


  • Makes it clear what the worker is being employed to do and the pay and conditions that the business will give to the worker, including holiday entitlement
  • Increased cost to cover workers on holiday or who only work a limited number of hours
  • Managing staff holidays to ensure there are always enough workers
• Discrimination

  Treating one worker differently to another for no acceptable reason
• Employment law


  Regulations and rules put in place to protect workers from employers who may treat them unfairly
• Statement of employment particulars


  Part of a contract of employment, it gives details of the terms of employment
• Grounds on which a person cannot be treated differently under the Equality Act


  • Gender
  • Religious Beliefs
  • Marriage
  • Gender Reassignment
  • Sexual Orientation
  • Disability
  • Pregnancy
  • Maternity
  • Race
  • Age
• A business must not: Pay workers differently for doing the same work, Favour certain type of people when recruiting, Discriminate when promoting or training workers, Allow workers to be mistreated by other workers
• A business that does discriminate


  Staff become less motivated, Performance of the business is affected, Workers decide to leave so business must recruit more staff, Poor reputation - reduce sales and profit and affect recruitment, Can be fined and made pay compensation
• A business that takes action against discrimination


  It increases costs, It needs to rewrite recruitment and training policies to prevent discrimination, It needs to monitor what goes on in the business to prevent discrimination taking place