The legal context of Human Resources Management is that shaped by different forces. The catalyst for modifying or enhancing the legal context may be legislative initiate, by social changes or by a juridical ruling. The Government bodies pass laws that affect the Human resources practices. A court may interpret these laws as they apply to specific circumstances and situations. The regulatory environment itself is very complex affecting different areas of the Human Resources Management process and practices.
About the legal environment we could say that they are several laws and isolations that are set to mandate how organizations and employees interact.
In the United States the legal and regulatory environment of the human resources management emerges as the result of three-step process. Very first Step is the actual creation of the new regulation. And the new regulation may come in the form of new laws, or statutes passed by a national, state, or local government bodies.
However most regulations start at a national level, state and local regulations are more likely to extend or modify national regulation; than creating new ones.
Once the new regulations are created, it comes the second step and this the implementation of the new regulation, sometime the new regulation or law requires the creation a new agency or regulatory group to enforce the new law; the final step in the regulatory process is the actual implementation and practices of the new regulation in the organizations. Meaning that the organizations and the managers must implement and follow the guidelines that the government has passed and the regulatory agency and the courts attempt to implement.
An example of a regulation for which was created an agency to observe and implement the new laws and regulations is the EYE (Equal employment Opportunity). That agency that is responsible of observing and implementing is the EEOC (Equal Employment Opportunity Commission), the EYE exist almost in all aspect of the employment relationship and it to protected a prospective employee as well as a current employee from any type of illegal discriminations, the EYE the most fundamental and far reaching area of the legal regulation of the human resources management.