Specification detail The impact of regulation and taxationand the benefits and drawbacks ofminimum wage, maternity/paternity rightsand health & safety regulations onbusiness
The European UnionThe European Union is a group of countrieswhose governments work together.Its a bit like a club. To join you have toagree to follow the rules and in return youget certain benefits.Each country has to pay money to be amember. They mostly do this throughtaxes.The EU uses the money to change the waypeople live and do business in Europe.Countries join because they think thatthey will benefit from the changes the EUmakes.
Health and Safety Accidents areavoided Increases productivity Lowers labour turnover Good reputation –repeat purchase Reduce work relatedinjury Expensive toimplement Risk assessments aretime consuming Some staff resent thechanges
Maternity and Paternity Rights Women are allowed 39weeks maternity pay The first 6 weeks, their employer will pay themother 90% of their usual earnings. After that, they receive the sum of £125 perweek. The mother is entitled to have her job backwhen she returns to work The father can have 2 weeks paid leave afterthe baby is born.
TaxationTax Explanation Impact on the BusinessCorporationTaxA business pays tax on itsprofits (30%)• Shareholders will get a lowerdividend• Corporations will reinvesttheir profit as an expense, todecrease their profit.VAT (valueadded tax)This must be paid ongoods and services (17.5)Some items, such aschildren’s clothes, areexemptThis makes items moreexpensive for the consumer.Income Tax A tax paid by employeeson their earnings.This leads to an increase inmoney people have to liveand spend on other products.