The setting up of a company with legislation and underpinnings is regulated under the financial services (FSA) and Market Act of 2000. The objectives outlined in the Act are to instil market confidence, gain financial stability, create public awareness, oversee reduction of financial crime as well as protect consumers (Davis, 1875). Under the Act, firms are regulated and prohibited from inviting investments in the United Kingdom, unless authorized by the financial promotions order. It also requires all firms to be licensed and authorized before engaging in any business activities in the country. It stipulates laws that allow private persons to sue a firm in case of damages caused while undertaking unauthorized activities.
The Financial Ombudsman service is a public body set by the United Kingdom parliament whose statutory functions and underpinning powers are directed at legislating and overseeing implementation of the Act.
Employment legislation on basis of disability, race, sex and pay are addressed under the following Acts:
Race Relations Act 1976
Under this Act, individuals are protected from discrimination based on colour, religion, sex or nationality. An employer is restricted from imposing English as the only language allowed in places where business is conducted, unless he can prove beyond reasonable doubt that it is necessary for the business. More so, employers are required to hire only the workers who are legally in the country.
Sex Discrimination Act
Under this Act, employers are prohibited to discriminate against pregnant women. Medical issues surrounding pregnancy must be treated as any other illness. This Act also governs the relationship between the employer and employees on grounds of interaction during work time.
Equal Pay Act 1970
Under the Act, regulations prohibit discrimination based on sex in the payment of wages and benefits; both men and women are to be paid equally if they perform similar tasks and the same level of skill, under the same conditions, and for the same employer (Selwyn, 2006). In an attempt to equalize the pay between men and women, the employer may not reduce wages of either sex.
Disability Discrimination Act 1995
Under this Act, a person with disability is defined as anyone with mental or physical impairment that substantially limits one or more major life activities and has a record of such impairment. The Act prohibits employment discrimination against individuals with disabilities in the private sector, state and local government if they are qualified for positions in question.
A qualified individual under this Act satisfies the educational and skill requirements of the particular sector (Selwyn, 2006). It stipulates that the employer is under obligation to make a reasonable accommodation to disabled employee unless such a move will create inconvenience in the operations of the sector. In 2005, the Act introduced equality duty, which required the proactive role in promotion of equality in relation to disabled people.
Contract of Employment
Each employee possesses a contract of employment whether in written form or not. If an employee agrees to work for an employer who has agreed to pay, a contract relationship becomes established. The Employment Act (2002) covers the laws governing this consideration.
Under the Act, the employer and the employee are bound by the terms and conditions stipulated in the contract in relation to wages, working compensation, and any additional terms. In cases of an unwritten contract, the employee has a right to present arguments to the Employment Tribunal. If successful, it will determine the specific particulars that should have been regarded with respect to the employee. The Act also protects the employee against incorrect or incomplete information that might have been presented in the contract and is given a right to claim compensation. Each time employees receive their pay, they are entitled to a written document stating the gross pay, any variable, and the net pay.
There are several laws under health and safety category. They include:
Occupational Safety and Health
These are contained in the Occupational and Safety Act of 1970 and are administered by the Occupational Safety and Health Administration (OSHA). This act covers both employers and employees. The law further establishes a separate program for federal employees.
It requires employers to be familiar with the applicable standards of their businesses and provide safe and health adhering conditions for their workers. OSHA sets standards and conducts inspections to ensure the employers follow the stipulations of the Act. The employers are examined at their areas of work. If there are no set standards by OSHA, the employees are required to follow the ‘general duty’ clause of the OSHA Act.
Mine Safety and Health
These laws are contained in the Mine and Safety Act of 1977 (mine Act) and are administered by the Mine Safety and Health Administration (MSHA). This Act covers all mine operators. They are defined as “any owner, lessee or other person who operates, controls or supervises a coal, mine or any independent contractor performing service or construction at such mine” (Albrecht,1985). The Act stipulates that MSHA should conduct inspections of all mines annually, and in cases of any underground mines, they should be inspected four times annually. The Act prohibits MSHA, at any cost, to give notice before any of their visits. In 2006, congress amended the act with the Mine Improvement and New Emergency Act of 2006.
Child Labour Provisions
This is contained under the Fair Labour Standards Act (FLSA) and is administered by the Wage per Hour Division (WHD).The Act contains rules on employment of youths under 18 years of age and is intended to protect the health and wellbeing of the United Kingdom youths.