Government legislations and laws control the operation of many businesses, for example laws and legislations imposed by the United Kingdoms or the European union acts directly as business constraints because they really do affect the business operations , some can say these regulations control the business .
In UK the most known legislations that affects the business are
The employment laws – this law protects employees from safety health and employment rights . some organisations will want to maximise their profits from the efforts of their staff members or employees which is not a bad thing but some employees can feel like the organisation is overworking them or abusing them and once such issues are raised in the UK it attracts the interests of the law makers. With having these laws it makes the businesses in the uk to operate in the fear to attract these legislators for example in the united kingdom the government changed the retirement age law to make it something compulsory for every employee to retire at the age of 65 , this own its own is a business constraint because it makes the business lose some of its employees even if they will be of great need.
The government of the UK also have the health and safety at Work Act 1974 which says Employers must provide safe premises and machinery. They must ensure that workers health is not affected by their work.The key costs and benefits of the Health and Safety at Work Act for a business are: Adds to costs to businesses that need to train staff and spend money maintaining the standards set out- BUT may reduce cost in the long term because of a reduction in staff absences and not having to pay compensation for injuries. Good health and safety record is a good way of encouraging recruitment of good workers.
This on its own reduce the maximisation of profits in organisations since a lot of costs will be incurred in the maintaining of work environment for employees. This definitely makes the government laws a great enemy to profit making with many other laws not mentioned like the Equal pay act and Employment Protection Act which all act as a hindrance to profit maximisation.
Government regulations