Analysis of Social Factors Affecting Tesco

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Legal Factors affecting Tesco

The shared parental leave

This employment law addressing parent of born child or adopted children who will be on from the 5 April and onward.  It suggests that both the parents of a new born child are entitled to some time off instead of the traditional way where only the woman would be allowed to take a maternity leave to take care of her child. The parental leave will be the same amount of time as before but, the parents will have to share it between them and it is entirely up to them when they decide to take it. But before that the woman has to have the first 2 weeks following the birth off.

This law could be seen as an opportunity which will be positive for Tesco because the mother will not have such a long time off work anymore. The amount of tome she would take off will be reduced which will beneficial for the business because it means that they won’t have to hire and pay someone else to work for the woman.  

Because of this change, there could be shortage of staff in a business where there are two or more than one pregnant employees. Due to this, one objective Tesco could for their business to overcome this negative change is “to have enough trained staff ready for replacement in case of maternity absence. One strategy I can suggest which Tesco could use to execute this objective is to hire a well trained staff that will replace the pregnant employee two a month or two before the employee actually leaves.

This strategy should prevent a shortage of staff within the Tesco when the employee finally does leave for their maternity or paternity leave and there shouldn’t be any problem following the leave.

New statutory pay rates

This law suggests that statutory maternity, paternity, adoption and shared parental leave will increase to 139.56 per week. This is the amount a business like Tesco will have to pay to the any of their employees absent for the reason of having a newborn or an adopted child from the 5th of April 2015.  

This law is rather a negative change that for Tesco because it is going to present a threat for them as they are now forced to spend more money on those workers with new baby while they are away from work. This could lead to the decrease of the benefit they will make over the period of time their employee will be absent.

One strategy I can suggest for Tesco to save them from spending a lot of money on employees who don’t work and reduce their budget on thing that will not bring them anything back is concentrate on maximising their sales and benefits so that they don’t feel the pinch from all the money will spend from non-working employees.

The strategy they could use to carry this strategy would be to charge more money on the products people buy the most for example slightly raising the price of their best selling products or services.

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Managing sickness absence

The managing sickness absence is a law that allow workers who are absent from work because of illnesses reasons to manage their leave. It provides free occupational health assistance for employees in a workplace after an absence of four weeks.

This particular law is negative for Tesco as it can present a threat to the performance of their business.  Because of this law any employee could be absent for weeks and comeback with an occupational health assessment and claim to be sick whether or not they truly were. The business’s performance would suffer if ...

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