Page 121 - Cambridge IGCSE Business Studies

8: Recruitment, selection and training of workers

Contract of employment
In most countries it is a legal requirement that workers are given a written contract

of employment. This is a legally binding agreement between the employer and the
employee and will include details such as:
■ the name of the employer
■ the name of the employee
■ date of commencement of employment
■ the amount the employee will be paid
■ the number of hours the employee is expected to work
■ the job title and main responsibilities of the employee
■ the number of days of holiday they receive
■ the period of time the worker has to give the employer if they wish to leave their
employment – this is known as the ‘period of notice’
■ the grievance and disciplinary procedures and where employees can find
information about these.

A contract of employment has benefits to both the employer and the employee. It

removes any misunderstanding that could arise over issues such as hours of work,
rate of pay and holidays.
If an employer ignores any of the terms of the employment contract, for example
pays the worker less than the amount agreed in the contract, then the worker could
take legal action against their employer.
However, if a worker breaks any of the terms of the contract, for example refuses 119
to work the number of hours in their contract of employment, then the employer
could dismiss the worker for breaking their contract.

Unfair dismissal
In most countries the law will protect workers and ensure that they are treated
fairly by their employer. This includes the legal right not to be dismissed from their

job without good reason. If they are, then this would be unfair dismissal.
A worker who thinks they have been unfairly dismissed can take legal action
against the employer. If the worker is a member of a trade union then they will fi ght
the case on the worker’s behalf.
If the courts decide that a worker has been unfairly dismissed they can force the
employer to give the worker their job back and/or compensate them for the loss of
earnings.

Discrimination
Many countries also have laws that prevent employers from discrimination when
recruiting new workers, or in how they treat workers who are in their employment.
Laws to prevent discrimination on the grounds of gender, race, colour, religion,
disability and age are the most common. Any worker who feels that they have
been discriminated against for any of these reasons has the legal right to take the
employer to court. Trade unions will provide the legal advice and support to any of
its members who have been subject to any form of discrimination covered by law.

Health and safety

The workplace can be a very dangerous environment for workers. Health and safety
laws aim to protect workers from injury or physical discomfort, for example being