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Legal and Ethical Considerations: Employment Laws Governing Compensation Pay Equity and Transparency Ethical Dilemmas in Executive Compensation
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Author(s): Anjali (United College of Engineering and Research, India), Pamarthi Satyanarayana (Vel Tech University, India), Subramanian Udayakumar (Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, India), Kasagani Durga (NBM Law College, India), Kandula VeeraBrahmam (MAM Law College, India), P. Selvakumar (Department of Science and Humanities, Nehru Institute of Technology, Coimbatore, India)and T. C. Manjunath (Rajarajeswari College of Engineering, India)
Copyright: 2026
Pages: 28
Source title:
Strategies for Effective Employee Rewards and Compensation Management
Source Author(s)/Editor(s): Wasantha Rajapakshe (Sri Lanka Institute of Information Technology, Sri Lanka)
DOI: 10.4018/979-8-3373-3820-0.ch010
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Abstract
Compensation is a pivotal element serving as both a strategic organizational success and a fundamental mechanism for recognizing employee contributions. However, designing and implementing a compensation system is far more complex than simply determining pay scales or benefits. It requires a deep and nuanced understanding of legal and ethical principles that govern how employees are remunerated. Legal and ethical considerations form the backbone of equitable compensation practices, ensuring that existing laws are transparent. In today's global and diverse workforce, failing to address these considerations can lead to significant financial, reputational, and operational risks. From a legal standpoint, organizations must navigate an intricate web that regulates wage structures, working hours, benefits, and discrimination. Key legislations Equal Pay Act, among others, serve to protect employees from unfair practices while establishing minimum standards for compensation.
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