Employer/Employee Relationship & Government Regulation of Business


Welcome to class! 

In today’s class, we will be talking about the employer/employee relationship & government regulation of business. Enjoy the class!

Employer/Employee Relationship & Government Regulation of Business

Employer/Employee Relationship classnotes.ng


  • Duties of the Employer
  • Duties of the Employee
  • Right of the Employer and the Employee
  • Reasons for Government regulation of business
  • Methods of Government Regulation of business

Duties of the employer

  1. To pay wages – i.e. enumeration
  2. To provide work which the employee will handle
  3. To give holidays to the employee
  4. Duty to take reasonable care for his employee’s safety
  5. Indemnity – The employee must reimburse the employee for any expense/loss incurred on behalf of the employee.
  6. Duty to provide the employee with the necessary tools to work with
  7. Duty to accept responsibility for any personal injuries sustained by the employee in the course of performing his duties

Duties of the employee

  1. Duty of care and diligence: Duty to act reasonably or to perform his duties in a reasonable manner
  2. Personal service
  3. Obedience
  4. Secrecy – a duty not to divulge the employer’s confidential information to third parties
  5. Good faith – The employee must not allow his interest to conflict with his duties
  6. Duty not to make a secret profit

Rights of employer and employee

  1. The rights of the employer are synonymous with the duties of the employee
  2. The rights of the employee are synonymous with the duties of the employer

In addition to the above, the employer has the following right

  1. Right to enjoy the benefits of inventions or patents of the employee provided such invention was made in the course of the employee working for the employer.


  1. State four duties of the employer as regards his relationship with the employee.
  2. Mention three rights of the employer

Government regulation of business

This refers to the various ways by which government controls the activities of business organization to ensure social and economic order in society.

Reasons for government regulation of business

  1. To raise money through taxes e.g. V.A.T., Education tax, etc.
  2. To protect consumers against exploitation by producers and middle-men e.g. by ensuring quality products or by ensuring regular supply of essential goods and services.
  3. To ensure uniformity in commercial practices.
  4. To protect employers and employees and ensure industrial peace
  5. To ensure conformity to international law and protocols e.g. IATA guidelines in the aviation sector.
  6. To facilitate even development of all parts of the country or to promote some critical sectors of the economy.
  7. To promote the general improvement of the economy.

Methods of government regulation of business

The various ways by which government regulates business include:

  1. Registration of business: Government register business organization to have accurate and up to date statistics on the number and types of business organizations operating in the country for example, Limited Liability Companies are registered by the Corporate Affairs Commission.
  2. Patents (Patent Rights): This is the right or privilege granted by law to an inventor of the machine or processes of production to enable him to enjoy the benefits of his effort for a given period. After this given time, another person may now copy or imitate the invention or process.
  3. Trade Marks: This is an identification, distinctive symbol design or special marks used in distinguishing products made by a particular company or business organization. The trademark is registered by the owner and confers on him the exclusive rights to use such identification on his product. The essence (importance) of trademarks becomes obvious when products are to be advertised or promoted e.g. Coca-cola continuous Ribbon; Mercedes Benz Star etc.
  4. Copyrights: This is the sole right accruing or granted to the owner or producer of literary, artistic, dramatic or musical works to reproduce his works and enjoy the financial benefits thereof for a specific period. Another person cannot reproduce such work without a written permission from the copyright owner. The copyright usually subsists for some definite periods (50 years for musical copyright) after which it expires.
  5. Approval of Business Location: Government is sometimes involved in approving the location of business enterprises. An example of this is the directive of CBN to the bank to open their branches in rural areas.
  6. Through the activities of government agencies established to monitor and enforce quality, prices standard or law e.g. SON, NAFDAC, FEPA, KAI etc.
  7. Regulations over ownership of Business: Ownership of business can also be regulated through some policies like indigenization, commercialization and privatization.
  8. Statutory Obligation like payment of Corporation Tax, the publication of accounts etc.


  1. Explain four ways by which government regulates business.
  2. State four reasons why the government regulates business activities in Nigeria.
General evaluation
  1. Give five reasons why manufacturers pre-package their products
  2. State any four disadvantages of pre-packaging
  3. State six distinguishing features of a mail-order business
  4. Give four advantages of mail-order business
  5. State six contents of a bill of lading

Reading assignment

Comprehensive commerce for SSS by J. U. Anyaole page 470 – 471


  1. State three reasons why the government regulates the activities of business enterprises in your country.
  2. State three ways by which the government regulate business activities.


In our next class, we will be talking about Information and Communication Technology.  We hope you enjoyed the class.

Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.

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