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This paper analyzes the differences that exist between the public sector and the private sector. This is done by considering employment laws governing the two sectors and how they are applied in each sector. It is evident that the public sector is run using strict government regulations that are mainly guided by public opinion. On the other hand, the private sector has more flexible regulations that favor businesses and promote profit making.
Employment law is a business concept that guides the legalities involved within a business environment. The private and the public sector are both characterized by differences. Thus, both sectors are characterized by the application and implementation of various employment laws (Bennett-Alexander & Hartman, 2011). The public sector consists of employees working for the central government or governmental agencies.
On the other hand, the private sector consists of employees working for non-governmental agencies. The private sector can be comprised of individuals owning businesses, limited partnership, and corporations. Within a country, the private sector is mainly comprised of more workers in comparison to the public sector.
Differences in public versus private sector
The public sector usually applies more employment laws in comparison to the private sector. The government, through the legislature, does the work of formulating laws that guide the private and the public sector. However, the public sector tends to apply more laws established by the central government. On the other hand, organizations in the private sector are established by individuals.
Thus, they tend to apply laws that they view as favorable for their activities (Smith & Thomas, 2007). They lack the rigorous initiatives used within public organizations in applying their laws. Thus, most of the laws they make are for their benefit and do not affect the public sector.
The employment laws made to manage the private organizations are not restrictive to encourage growth within the private sector. In many cases, the laws are made to ensure that ethics exist within the business environment. Moreover, the main objective of the laws is to ensure that businesses make profits and achieve growth. In comparison, the employment laws formulated to guide the public sector are more restrictive.
They contain specific details on how various activities should be conducted within government offices. The laws also cover all governmental organizations. Private entities vary in terms of the laws that they are required to apply.
For instance, they have fewer laws to consider, making it easier for them to conduct their activities freely. The private sector also has workplaces that are different and constantly changing. Thus, they tend to have laws that vary from workplace to workplace (Miller & Jentz, 2008).
The employment laws that guide the public sector are intended to give future protection for workers within the public service. Such workers are guaranteed a variety of benefits once they retire. For instance, they are offered insurance, income security benefits, and vacation time.
Moreover, they often get retirement benefits from the government (Miller & Jentz, 2008). In comparison, workers in the private sector are not assured of their future after retiring. Thus they are forced to rely on their savings after losing their sources of income.
Workers in the public sector are also assured of jobs. This means that they can retain their jobs for longer. The government is directly involved in the public sector. Thus, job losses occur less often because the government can cushion workers in the public sector from the loss of jobs. The government can finance a public sector corporation during troubled economic times.
In comparison, organizations in the private sector mainly depend on themselves. Workers can easily lose their jobs when faced with harsh economic times. The government, in many cases, is more stable than the private sector because it is affected less by economic conditions that affect the private sector (Anthony, 2012). Thus, the employment laws that are established guarantee workers in the public sector of their jobs.
The employment laws within the public sector also ensure that the jobs given are permanent. Thus, workers in the public sector are guaranteed of their current positions and promotions in the future. In comparison, the employment laws established within the private sector cannot assure a worker of their position within a company.
The employee can easily lose the job. In the public sector, loss of employment involves various established procedures (Anthony, 2012). For instance, a public service employee can lose his or her job if they are involved in illegal activities, or they make errors that are considered to be very serious within the workplace.
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Employment laws in the private sector usually lead to increased competition among workers. It is for this reason that most workers within the private sector are well educated and experienced. Having more academic credentials and experience ensures that a worker in the private sector retains a job. In the public sector, employment laws prevent constant changes in the workforce. The career paths of many public workers may stagnate.
Competition within the public service is also nonexistent. When it comes to employment, all sectors of the public service are considered to be equal. This may be attributed to the fact that most jobs within the public sector are guided by the same employment law (Barnard, 2012).
Employment laws guiding the private sector are also characterized by strict controls in comparison to the laws applied within the public sector. This is usually done to encourage efficiency within the private sector. These laws describe the activities carried out within organizations in the private sector (Barnard, 2012). Thus, the private sector, in many cases, provides better services in comparison to public service.
The private sector is the best choice for higher wages, despite its limitations enumerated above. In public service, the salaries earned are usually constant. Moreover, salary increases do not occur often. It takes a long time for salaries to be increased because such a decision will have to go through many bureaucratic processes (Anthony, 2012).
Moreover, the legislature and other governmental committees will also be involved in determining any salary increase. This can be attributed to dependence on public opinion. The public sector relies on taxes. Thus it is hard to increase salaries if the public does not view it as necessary. In comparison, many workers within the private sector enjoy higher salaries (Anthony, 2012).
In conclusion, many differences exist between the public sector and the private sector. These differences usually result from the employment laws governing these two sectors. While there are similar employment laws that guide both public and private sectors, some laws only exist within the private sector. Thus, these differences affect the output witnessed in both sectors and how employees are treated.
Anthony, G. (2012). UK public law & European law. Oxford, UK: Hart Publishing.
Barnard, C. (2012). EU employment law. Oxford, UK: Oxford University Press.
Bennett-Alexander, D., & Hartman, L. P. (2011). Employment law for business (7th ed.). Boston, MA: McGraw- Hill/Irwin.
Miller, R. L., & Jentz, G. A. (2008). Business law today: the essentials 8th ed). Mason, OH: South-Western Cengage Learning.
Smith, I. T., & Thomas, G. (2007). Smith & Thomas employment law (9th ed.). Oxford: Oxford University Press.