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Advantages
- ensures employees are treated fairly so won't leave for being treated unfairly
- prevents conflict and stops them from getting a bad reputation/in trouble with the law
- guidelines for how you should treat employees
- ethical
- motivates employees
- less likelihood of industrial unrest (strikes)
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Disadvantages
- have to pay employees even when they are not working (maternity leave) may have to hire a temp and pay them too
- redundancy can give them a bad reputation - people wont want to work there as the job isnt secure
- some business may ignore the law and be taken to court
- increases cost
- takes time and effort to monitor
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