IGCSE Business Studies - 2.3.4 - Legal Controls on Employment

What is an employment contract?

• A written agreement between a business and its suppliers

• A document outlining the terms of employment between an employer and an employee

• A record of an employee’s salary payments

• A set of government rules about hiring workers

Which of the following is usually included in an employment contract?

• The number of employees in the company

• The employee’s job title, working hours, and salary

• The company’s annual profit

• The price of company shares

Why are employment contracts important for employees?

• They guarantee a promotion every year

• They outline the employee’s rights and responsibilities

• They prevent employees from ever quitting their jobs

• They increase the company’s profits

If an employer changes an employee’s working hours without agreement, they are:

• Following employment laws

• Violating the employment contract

• Giving the employee a promotion

• Encouraging career growth

Which of the following is NOT a requirement in an employment contract?

• Salary details

• Employee’s favorite hobbies

• Job responsibilities

• Notice period for leaving the job

What is the legal minimum wage?

• The maximum amount an employer can pay an employee

• The lowest amount an employer is legally allowed to pay an employee

• The amount of money employees pay to the government

• The amount businesses must pay in taxes

Which of the following is a benefit of the minimum wage?

• It ensures employees are paid fairly for their work

• It allows businesses to pay workers as little as they want

• It reduces employee motivation

• It prevents employees from leaving their jobs

What could happen if a business pays workers less than the minimum wage?

• Nothing, because the minimum wage is optional

• The business could face legal penalties and fines

• The employees will receive a bonus instead

• The government will pay the difference

Which group of workers is usually most affected by minimum wage laws?

• Senior executives

• Entry-level or low-skilled workers

• Business owners

• Government officials

Which of these is NOT an advantage of minimum wage legislation?

• It helps reduce income inequality.

• It ensures workers can afford basic necessities.

• It eliminates the need for employee training.

• Ensuring a decent wage can improve worker motivation