Compensation and benefit systems

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Compensation and benefit systems
Government normally intervene on matters pertained to employee benefits through regulations and legislation. The primary goal of government legislation is to give employees protection from the fluctuations in earned income which is normally caused by labor market. On the other hand, regulation imposes limitations on the employer’s ability to fire employees and to use temporary employees (Joseph 145). This is all achieve through employment protection which has the impact of raising employer’s cost for adjusting the size of work force and it composition. It helps in addressing unemployment, wages, structural changes and productivity in a sense that focuses on social welfare of the people.
Government regulation ensures that if an employee is laid off without a cause he should be compensated. Government legislation also imposes a minimum wage and hence protects the over-exploitation of labor force. The legislation on pension plans curb administrative misuse and the discharge of employees. This ensures that the emp...