Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Which entity in an organization is typically responsible for employment law?

The Chief Executive Officer
The head of Human Resources
The compliance officer
The accountant

The correct answer is: The head of Human Resources

The head of Human Resources is typically responsible for employment law within an organization. This role encompasses a broad range of responsibilities related to employee relations, recruitment, retention, training, and ensuring compliance with labor laws. Human Resources professionals are well-versed in various employment laws and regulations, such as those concerning discrimination, harassment, wage and hour laws, and employee rights. They play a crucial role in developing policies and procedures that comply with these laws and effectively managing potential legal risks associated with employment practices. While other roles, such as the Chief Executive Officer or compliance officer, may have a stake in overseeing or ensuring compliance with legal standards, the HR department specializes in the nuances of employment law and directly manages the related processes within the organization. The accountant's primary focus lies in financial reporting and management, which generally does not extend to the complexities of employment legislation.