The purpose of legal controls over employment

Legal controls over employment exist to safeguard workers from unfair treatment by employers. These laws ensure that businesses operate ethically, preventing practices that could harm employees' wellbeing or rights.

Without these laws, businesses might engage in exploitative behaviours, such as:

• Paying unfairly low wages.
• Requiring employees to work excessive hours.
• Denying basic rights.
• Exposing workers to danger.
• Discriminating against individuals.
• Dismissing staff unfairly.

Understanding discrimination in the workplace

Discrimination involves treating someone differently based on certain characteristics.

Types of discrimination

• Legal discrimination - This occurs when decisions are based on relevant factors like skills, qualifications, or experience.
• Illegal discrimination - This happens when choices are influenced by protected characteristics that are unrelated to job performance, such as gender, race, or age.

Gender discrimination and related legislation

Gender discrimination affects a large portion of the workforce, with evidence showing persistent inequalities. Legislation aims to ensure equal treatment regardless of gender.

Evidence of gender discrimination

• Women make up a significant share of the workforce, rising from around 38% in 1972 to 47% in 2014 in the USA.
• There is a notable wage gap; for instance, in 2014, women in the USA earned approximately $39,621 annually compared to $50,383 for men.
• Surveys indicate that over a quarter of women in the UK felt they experienced gender discrimination in 2014.

Key legislation on gender discrimination

The Sex Discrimination Act 1975 states that individuals must not face discrimination based on their gender. This includes ensuring that job adverts and titles are gender-neutral, and that recruitment, selection, and promotions are based on ability rather than gender.

The Equal Pay Act 1970 requires that employees performing the same or broadly similar work as someone of the opposite sex receive equal pay and working conditions.

Requirements to prevent gender discrimination

• Job advertisements cannot specify a preferred gender.
• Job titles must remain neutral, such as using "flight attendant" not "stewardess".
• Promotion decisions should focus on skills and performance, not gender.
• Equal wages must be provided for equivalent roles.
• Internal communications and documents should use inclusive language.

Race, religion, disability, sexual preference, and age discrimination

Various forms of discrimination extend beyond gender, covering aspects like race, religion, disability, sexual preference, and age. Each has specific protections to ensure fair treatment.

Race and religion discrimination

Race and religion discrimination involves unfair treatment based on colour, race, ethnic origin (the birthplace of a group from a different race than the main population in a country), religion, or nationality. Data from 2015 shows higher unemployment rates among ethnic minorities in the UK, and Asian American workers in technology often face barriers to advancement despite qualifications.

The Race Relations Act 1976 makes it illegal to discriminate on grounds of race, meaning businesses cannot prefer candidates from one ethnic group over another.

Requirements to prevent race and religion discrimination:

• Businesses cannot prohibit religious attire, such as head coverings or symbols.
• Selection processes must not disadvantage applicants from minority groups.
• Employers must accommodate religious observances, including holidays.
• Refusing employment based on ethnicity or religion is prohibited.
• Anti-harassment (unpleasant or threatening behaviour) training must be provided.

Disability discrimination

People with disabilities often face higher unemployment rates; for example, in Germany in 2012, the rate was 14.8% for disabled individuals compared to 6.8% for the general population. The Equality Act 2010 defines a disability as a physical or mental impairment with a substantial, long-term adverse effect on daily activities, and it prohibits discrimination on these grounds.

Employers must make reasonable adjustments to accommodate (adapt the environment to meet needs) disabled workers.

Required accommodations for disabilities:

• Modify building features, such as adding entrance ramps or wider doorways.
• Offer flexible scheduling for healthcare appointments.
• Adapt technology to support sensory impairments.
• Allow extra time for training.

Sexual preference discrimination

Discrimination based on sexual preference varies worldwide; it is protected in some countries but criminalised in others, such as around 38 out of 55 African states. South Africa introduced protections for LGBTI (lesbian, gay, bisexual, transgender, and intersex) workers in 1998. Businesses must prevent discrimination in all employment areas.

Age discrimination

Age discrimination happens when decisions are based on age rather than ability, such as preferring a 28-year-old over an equally qualified 58-year-old for a marketing role. Older workers often experience higher unemployment in many countries.

Protections against age discrimination:

• Employment cannot be denied solely based on age.
• Age-based harassment must be prevented.
• Advancement opportunities should not be withheld due to age.
• Assumptions about age cannot influence hiring decisions.
• Arbitrary experience requirements that disadvantage younger workers are not allowed.

Consequences of discrimination for businesses

Discrimination can lead to severe repercussions for businesses, affecting their operations, reputation, and finances. Large organisations, such as those in the FTSE 100 (an index measuring share prices of the UK's top 100 companies), are held to stricter diversity standards, while small businesses (e.g., a three-person accounting firm) may have some exemptions, like not facing scrutiny for gender imbalances (unnaturally more of one gender in a group).

Key consequences of discrimination

• Legal repercussions - Businesses may face tribunals (courts dealing with specific issues), resulting in penalties and costs.
• Talent limitations - Failing to hire the best candidates due to bias restricts access to optimal skills.
• Employee issues - It can cause disengagement among staff and create workplace discord.
• Overall impact - These factors harm productivity and can damage the business's reputation.