Legislative Acts (Evolution of Management Class) - Essay Example

Employee Retirement Income Security Act (ERISA) Teacher: Employee Retirement Income Security Act (ERISA) Originof ActEmployment Retirement Income Security Act (ERISA) can be traced back to 1974 that is its origin. This act is managed by Employee Benefits Security Administration (EBSA) (United States Department of Labor, 2009). In the initially implemented act, many transformations can be noticed till now. Purpose of the ActThis act involves employees, organizational administration and employers.

The purpose of ERISA is to ensure that all the employees get their retirement rights such as retirement income, employee benefits such as health benefits, vacation benefits and so on (United States Department of Labor, 2009). ERISA ensures that employees get their due benefits within the given time in a reasonable and just manner. Employees get surety and contentment that at their retirement age, they will get income security and welfare plans.Impact upon BusinessAs ERISA is related to employees working in any organization, therefore, the act is quite influential in business sector.

The employees get satisfaction related to their retirement and there is a sense of hopefulness that they will not be left unattended at their retirement age. Due to this act and its implementation, the employees are encouraged to work in any business sector with job and income security. They do not face problems regarding their retirement as according to the act, they have their due rights such as income security and welfare plans associated with retirement. The United States department of Labor ensures that employers or other authorities, who are responsible for violating the act, are taken under check considering civil action.

Criminal penalties are also imposed on the violators of the act due to which, the employers are restricted to take care of their employees (United States Department of Labor, 2009). Due to ERISA, the business is influenced to a great extent as the employers as well as employees, everyone is aware of his rights and the reaction of violating the act. The employees get a sense of security while the employers get a sense of responsibility towards his employees.ERISA and Tenets of Humanistic EraERISA is quite a significant act as it ensures that employees get their due rights even at their retirement.

The act fulfils the tenets of humanistic era as the employees get reward for their work and get a sense of contentment related to their jobs with businesses. Employees are able to recognize their hardships and works related to their jobs and are also able to gain knowledge about their rights according to their jobs. ERISA makes sure that employees get what they are to get because of their jobs. The employer is restricted to take care of his employees keeping in view the act.ReferencesUnited States Department of Labor. (2009). Employee Retirement Income Security Act (ERISA).

Retrieved on 8th March 2011 from http://www.dol.gov/elaws/elg/erisa.htm