THE HUMAN RESOURCES LEGAL ENVIRONMENT

Environmental Forces

• Business Environment

• Task Environment

• Competitive Forces in the Task Environment

• Technological Forces

• Political and Legal Forces

The General Environment and Environmental Forces Affecting

Organizations

Adapted from Figure 3.1

The General EnvironmentCultural Forces

Political - Legal Forces

Technological Forces

Competitive Forces

Organization

Eco

syst

emP

olitical System

Demographics Economic System

3.2

LEGAL ENVIRONMENT

• What is Law?-

• Applicability of Law- – country, – location, – industry,– processes, – Practices,– Other factors.

IGNORANCE OF LAW IS

NO EXCUSE

THE HUMAN RESOURCES LEGAL ENVIRONMENT

• Applicability of country law on organizations and their impact on business operations and processes,

• To ensure regulatory compliance managers / organizational leaders need to know what provisions of law are applicable, what actions are warranted to be taken on their part and what impact it will have on working of the organization in the future.

• It is must for managers to regulate employer’s conduct in dealing with their employees within legal framework.

• The coverage of such laws have become so pervasive that they must be considered as input in overall strategy formulation and increased involvement of human resources management in the process.

IMPORTANCE OF HR LEGAL ENVIRONMENT

• Understanding HR legal environment is mandatory :– To devise strategy for recruitment, restructuring,

outsourcing, reorganizing the traditional functional arrangements of the organization.

– To effectively design and implement strategies for managerial flexibility and managing employer –employees relationship, responsibilities and liabilities within the legal framework without and to avoid any unlawful actions / practices.

– To fully avail benefits of legal provisions supportive to business decisions & plans.

HR LEGAL ENVIRONMENT

• EQUAL EMPLOYMENT OPPORTUNITIES.• Civil Rights Legislation -USA –Prohibits discrimination- .• Employer’s liability to comply legal provisions regarding:

– Age discrimination.– Gender discrimination.– Religious discrimination.– Disability discrimination.– Sexual harassment .– Sexual orientation.– E.mail & Internet use. (jokes, pornographic material, offensive statements

pertaining to religion, ethnic, political, social affiliations / backgrounds) .– Liability of employer for employees conduct.

• Quid Pro Quo Hostile Environment. (an intimidating , hostile or offensive work environment).

• Office romances ( among consenting adults) serious when supervisory / managerial levels are involved..

HR LEGAL ENVIRONMENT & EMPLOYEE RELATIONS

• Negligent hiring .(Employer liability for employees conduct)

• Employment at will. (hiring / firing at free will of employer)

• Drug testing in pre-employment screening process.• Safety.- Factories Act.• Labour Relations and Collective Bargaining.• Compensation. ( minimum wage, Fair Labour

Standard Act (FSLA)of USA, workers compensation Act, SESSI / EOBI contributions / verification of claims, employee records etc).

• STRATEGIC IMPACT OF LEGAL ENVIRONMENT.• Emerging issues

HR LEGAL ENVIRONMENT & EMPLOEE COMPENSATION

• WAGES & BENEFITS.• HEALTH CARE BENEFITS.• FAMILY & MEDICAL LEAVE.• GROUP INSURANCE.• WORKMAN COMPENSATION.• RIGHTS GUARANTEED UNDER LAW.• TERMS & CONDITINS OF EMPLOYMENT.• UNION AGREEMENTS.

THANK YOU