The work contract and workers' rights
An employee works for an employer and gets wages. Their contract says the job, the pay, the hours and the leave. A written contract is best because it can be shown as proof.
Laws in most countries protect these labour rights:
- Fair pay: at least the minimum wage, paid on time, equal pay for equal work.
- A safe place: safe machines, clean air, protective gear, no harassment.
- Rest: limits on working hours, a weekly rest day, paid leave, special care for young workers.
- Union and bargaining: workers can join together to talk with the employer.
Child labour is banned below the legal working age. Workers also have duties: do the job honestly and follow safety rules.
Disputes between workers and employers
If an employer does not pay or fires someone unfairly, the worker can first talk to the employer or a union. Next options are a labour office, a mediator, or a labour court. Keep proof: the contract, pay slips, messages. Informal workers who have no paper contract can still claim rights; their helpers are local worker groups and labour offices.
Starting a business: entrepreneurship
An entrepreneur spots a need, builds an idea and takes the risk of starting a business. Typical steps:
- Idea and plan: what you sell, to whom, and what it costs.
- Choose a form: alone (sole trader), with partners, or a company. A company is a separate legal person, so the owners' personal property is safer.
- Register the business with the authority and get a tax number.
- Licences for special work (food, medicine, driving a taxi).
- Hire with contracts and follow labour rules.
- Keep accounts of money in and out.
The state often helps small starters with simple registration, small loans and training.
Fair competition
Businesses compete for customers. Fair competition means winning by better price, quality or service, not by cheating. Common laws:
- No false advertising or fake reviews.
- No wrong weights or measures, and no selling unsafe goods.
- No price fixing: rivals must not secretly agree to keep prices high.
- No copying a brand name or invention that is protected.
These laws protect customers and honest sellers. Offenders may face fines, closing of the shop, or compensation to customers.
Tax: what, why and how much
Tax is money that people and businesses must pay to the state by law. The state uses it for schools, roads, hospitals, police, defence and help for the poor.
- Direct tax: paid straight on income or profit (income tax, company tax).
- Indirect tax: included in the price of goods and services (sales tax, VAT, GST).
Tax = base × rate ÷ 100. Base is the income or the sales; rate is the percent. If sales are 200 coins and the rate is 10 %, tax is 200 × 10 ÷ 100 = 20 coins.
Many countries use slabs: a higher rate on higher income. Filing a return on time and keeping bills is a citizen's duty. Hiding income (tax evasion) is a crime; using legal reliefs (tax planning) is allowed.
Try it: at home or in the 3D
1. In the 3D, set sales to 100 and rate to 10: how many coins go to the public fund? 2. Double the sales: what happens to the tax? 3. Ask a shopkeeper (or look at a bill) to find the tax line. 4. Write a 4-step plan to start a small lemonade stall.
Key formulas and definitions
- Tax = base (income or sales) × rate ÷ 100
- Amount kept = sales − tax
- Direct tax: paid on income; indirect tax: included in price
- Starting steps: idea → form → register → licence → hire → accounts
- Fair competition: win by quality and price, not by cheating
Worked examples
1. A shop has sales of 200 coins and a tax rate of 10 %. Find the tax and what the owner keeps.
Tax = 200 × 10 / 100 = 20 coins. Kept = 200 − 20 = 180 coins.
2. A worker is paid 400 coins a day, works 6 days and earns 2400 coins a week. The employer wants 7 days for the same pay. Which right is touched?
The right to rest. Most laws give a weekly rest day. The worker can ask for the rest day or extra pay, and can approach the labour office if refused.
3. A bakery sells a loaf at 50 coins with 5 % indirect tax included in the final price as an extra. Find the price the customer pays.
Tax = 50 × 5 / 100 = 2.5. Customer pays 50 + 2.5 = 52.5 coins.
4. Two juice sellers secretly agree to raise prices together. Is this fair competition?
No. This is price fixing. It harms customers who lose the choice of a lower price. A competition authority can fine them.
Common mistakes
- Thinking only written contracts count. Spoken deals can count too, but a written one is easier to prove.
- Thinking a tax is a favour to the government. It is a duty that pays for shared services.
- Mixing tax evasion (illegal hiding of income) with tax planning (using legal reliefs).
- Starting a food or medicine business without a licence.