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What are the legal controls in employment and how does it effect businesses

Updated: Jun 18

Each country has different legal controls that are developed to suit each country's need

In general, these legal controls involves;

  1. The rights and obligations between employees and employers, which are usually specified in the employment contract

  2. Laws that protect employees from unfair dismissal

  3. Discrimination at work and employment

  4. Safety and health standards

  5. Minimum wage and

  6. Legal working age

Multinational firms are likely to decide on which country to setup its businesses by deliberating its legal controls. This is because they may incur high cost to meet some of these regulatory requirements.


  1. Legal controls

  2. Discrimination

  3. Employment


  1. Identify and explain two ways an increase in minimum wage could affect a business. (4 marks) May/June 2018/12

  2. Do you think a firm should pay its workers the same wage rate as its competitors? Justify your answer. (6 marks) May/June 2019/11

  3. Do you think changes in legal controls over employment issues will always reduce business profits? Justify your answer. (6 marks) May/June 2020/12

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