(Solution) 5HR03 Assessment ID / CIPD_5HR03_24_01 (AC3.4) Explain the legislative requirements that impact reward practice

Solution

The legislative requirements which affect Eco-Insulate include the Equality Act 2010 and the National Minimum Wage Act 1998 and the Working Time Regulations 1998. The practise of rewards at Eco-Insulate undergoes substantial influence from each of the existing legislative requirements.

The Equality Act 2010

Eco-Insulate should implement fair compensation policies per the 2010 Equality Act because the law applies the same way to both male and female employees (ACAS, 2024). Eco-Insulate must design reward packages to deliver equivalent pay to employees with equivalent job positions. The company can avoid discrimination claims based on the Equality Act 2010 through these practises. Eco-Insulate has to use objective assessment criteria to determine job worth for establishing their pay systems. Eco-Insulate faces direct legal repercussions because of its non-action to prevent equal pay violations that constitute violations of employee rights.

The National Minimum Wage Act 1998

The National Minimum Wage Act 1998 produces significant influence on the reward practises at Eco-Insulate (GOV.UK, 2016). Eco-Insulate needs to ensure all hourly-paid staff receive wages at or above the authorised minimum based on their age criteria. Unlawful pay underpayments need to be prevented through proper salary organisation otherwise companies could face penalties. Eco-Insulate must audit its complete compensation system while monitoring current minimum wage rate revisions to maintain complete adherence to the law in all operations. Eco-Insulate risks significant legal penalties from noncompliance because the company has not correctly matched salaries and regularly cheques for legal wage compliance.

The Working Time Regulations 1998

The Working Time Regulations 1998 defines…….

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