CAIE IGCSE Business Studies 2.1.2 employment contracts and legal controls
Practise employment-law questions by defining key terms, explaining rules in context and judging whether controls reduce profit.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define dismissal as employer termination because rules are broken or work is poor.
- Explain effects of wage, safety, discrimination or working-hour controls on a business.
- Justify whether legal controls reduce profit after weighing cost and worker benefits.
2.1.2—Employment contracts and legal controls over employment issues question 1
[Maximum number: 4]
DLT manufactures cups and plates in country X. Its factory uses flow production and has 75 employees. The Human Resources Director is aware that there are many legal controls over employment. DLT exports 30% of its products to country Y where it benefits from lower rates of taxation and no import quotas. DLT's Managing Director is considering relocating its factory to another part of country X to meet the increased demand for its exports.
Identify four legal controls over employment.
Legal control 1:
Legal control 2:
Legal control 3:
Legal control 4:
Award 1 mark per legal control (max 4).
Points might include:
- Unfair dismissal
- Discrimination/equal opportunities
- (Health and) safety/working conditions/working environment
- Minimum wage
- Contract of employment or examples such as sickness policy / holiday entitlement / notice period / rate of pay/salary / pension entitlement
- Redundancy
- Working hours/provide breaks
- Legal working age/child labour
Other appropriate responses should be credited.
Only award the first four responses given.
Allow examples of discrimination only once.
Do not award:
- Ethical points such as fair pay.
All question bank results loaded