Syllabus: Cambridge - IGCSE Business Studies
Module: 2.3 Recruitment Selection and Training of Employees
Lesson: 2.3.4 Legal Controls over Employment Issues and their Impact on Employers and Employees

Jump to Section:

Introduction

This lesson supports the Cambridge IGCSE Business Studies syllabus, specifically unit 2.3.4 on Legal Controls over Employment Issues and their Impact on Employers and Employees. The topic is fundamental to understanding how legislation shapes the working relationship between organisations and their staff. As students explore recruitment, selection, and training, legal compliance becomes the bridge between theory and practice, connecting classroom concepts to workplace realities.

Beyond exams, this knowledge is vital for career readiness. Students gain a working understanding of employment law, a key workplace competency that underpins fairness, safety, and organisational culture — all essential for success in any sector.

Key Concepts

According to the Cambridge IGCSE specification, learners should understand:

  • The main legal controls over employment: including laws relating to discrimination, health and safety, and unfair dismissal.

  • Impact of these legal controls on both employers and employees.

  • Employer responsibilities in complying with legislation and the consequences of non-compliance.

  • Employee rights and protections, particularly around hiring, working conditions, and termination.

  • How legal compliance affects costs, reputation, and training policies within a business.

These concepts are framed within the broader process of recruitment, selection, and employee development, making them essential for exam preparation and workplace application.

Real-World Relevance

Legal controls in employment aren’t just abstract rules — they actively shape everyday business decisions. For example:

  • Amazon UK faced scrutiny from trade unions over alleged poor working conditions in its fulfilment centres. The issues included safety breaches and excessive pressure — directly linking to health and safety legislation.

  • Sports Direct had to overhaul its HR policies after revelations of zero-hour contract abuses and allegations of unfair dismissal, showcasing how neglecting legal obligations can severely damage a brand and result in legal consequences.

  • The UK Equality Act 2010 requires businesses to uphold non-discriminatory practices. A recent tribunal case involving a retail chain reinforced the financial and reputational costs of failing to comply with equality standards.

Discussing these examples helps students see the tangible consequences of employment law and links well to themes such as ethics, corporate responsibility, and decision-making.

How It’s Assessed

Cambridge IGCSE typically assesses this topic through:

  • Short-answer and structured questions, often requiring definitions, explanations, and brief examples.

  • Application questions, where students analyse how legal controls affect a business in a given scenario.

  • Evaluation questions, where learners must weigh the impact of legal compliance or non-compliance on business performance, often with command words like Analyse, Discuss, Evaluate, or Justify.

Students should be encouraged to use business-specific examples and apply knowledge rather than reciting theory. For instance, in a 6- or 8-mark question, depth of argument and contextual application are key to scoring top marks.

Enterprise Skills Integration

This topic develops several key enterprise and employability skills:

  • Decision-making & risk management: Understanding how businesses must weigh legal obligations against operational flexibility.

  • Problem-solving: Exploring how organisations resolve legal disputes, handle complaints, or improve compliance.

  • Communication: Considering the importance of clear, inclusive, and legally compliant messaging in recruitment and workplace conduct.

  • Stakeholder awareness: Analysing how legal controls protect different stakeholder groups — employees, management, and external regulators.

These map directly to Enterprise Skills’ thematic pillars such as Workplace Readiness, Decision-Making & Problem-Solving, and Commercial Awareness.

Careers Links

Legal controls over employment are relevant to a wide range of careers, particularly those that demand:

  • Human Resources (HR): Professionals managing compliance, contracts, diversity policies, and employee relations.

  • Line management and team leaders: Roles that need awareness of employment rights and responsibilities.

  • Health & Safety Officers: Key figures in compliance with workplace safety laws.

  • Legal and compliance roles: Especially in larger firms or regulated industries.

The topic aligns closely with Gatsby Benchmarks 4, 5, and 6:

  • Benchmark 4: Linking curriculum to careers — this topic directly supports understanding HR, law, and operations.

  • Benchmark 5: Employer encounters — invite guest speakers from HR or employment law backgrounds to bring this topic to life.

  • Benchmark 6: Experiences of workplaces — students can conduct mini audits of classroom or club environments to check for safety or inclusion, simulating legal compliance in action.

Teaching Notes

Tips for Delivery:

  • Use role-play scenarios involving workplace disputes or interviews, asking students to assess compliance.

  • Integrate mini case studies (e.g. Amazon, Sports Direct) to stimulate discussion on real-world consequences.

  • Use news articles or tribunal summaries to bring a legal dimension into classroom debate.

Common Pitfalls:

  • Students often confuse discrimination with inequality — clarify legal definitions with precise examples.

  • Some focus only on employee benefits, ignoring employer responsibilities and costs — ensure both perspectives are covered.

Extension Activities:

  • Ask students to draft a legally compliant job advert, considering language, working hours, and qualifications.

  • Conduct a “Workplace Audit” where students assess classroom environments against simplified health and safety checklists.

Recommended Tools:

  • Skills Hub Business and Futures platforms offer mapped activities that support decision-making and compliance-focused tasks with zero prep time, particularly useful for non-specialist teachers.

Find out more, book in a chat!

Looking to elevate your students learning?

Skills Hub
by Enterprise Skills
Learning by doing. Thinking that lasts.