ACCA Applied Knowledge · Business and Technology · Political and legal factors affecting business
A company in a country where employment law requires written terms of employment hires a new worker and gives only a verbal promise of pay and hours. Which type of legal factor is primarily being breached?
Employment law is being breached. Requirements for written terms covering pay and hours regulate the relationship between employer and employee. Competition, environmental and intellectual property law deal with market behaviour, pollution and ownership of creations, so none of them governs how a worker's contract terms must be documented.
- AEmployment lawCorrect
- BCompetition law
- CEnvironmental law
- DIntellectual property law
Explanation
Rules on written terms, pay and hours are part of employment law, which governs the relationship between employer and employee. The other areas deal with markets, pollution and ownership of creations, so they are not the primary issue.
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