4.8. People Management in Small Businesses: Labor legislation and union relations

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People management in small businesses is fundamental to the development and success of the business. One of the most important aspects of people management is the understanding and proper application of labor legislation and union relations. This chapter of our e-book, "Business Management and Entrepreneurship Course for Small Business Owners", will cover these topics in depth.

Labor Legislation

Labor legislation is a set of rules and laws that regulate labor relations between employers and employees. It is designed to protect workers' rights by ensuring a safe and fair working environment. For small business owners, it is crucial to understand and follow labor laws to avoid legal penalties and maintain a positive work environment.

The most relevant aspects of labor legislation that small business owners should be aware of include: working hours, wages, benefits, leave, job security, layoffs and terminations. Each of these aspects has specific laws that regulate how they should be managed.

For example, labor legislation determines the maximum number of hours an employee can work in a day or week, as well as the payment of overtime. It also establishes the minimum wage that an employee must receive, in addition to rights such as paid vacation, 13th salary and maternity leave.

Union Relations

Union relations are another important aspect of people management in small businesses. Trade unions are organizations that represent the interests of workers in a particular industry or profession. They negotiate collective bargaining agreements with employers, which establish working conditions, wages and benefits for workers represented by the union.

Small business owners must understand how unions work and what their rights and obligations are in relation to them. This includes understanding the collective bargaining process, how to deal with strikes and other forms of industrial action, and how to resolve labor disputes.

It is important to highlight that although unions can sometimes be seen as adversaries by employers, they can also be valuable partners. Unions can help improve relations between employers and employees, promote a fairer and more equitable work environment, and contribute to business stability and productivity.


In short, managing people in small businesses involves a deep understanding of labor legislation and union relations. Small business owners who invest time and resources into understanding these aspects can create a positive work environment, avoid legal problems, and improve productivity and business success.

We hope this chapter of our e-book has provided useful insight into managing people in small businesses. In the next chapter, we will cover the importance of strategic planning and how it can help drive the growth and success of your business.

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284.9. People Management in Small Businesses: Organizational change management

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