The Use of Health Information Act at Labor Market & Transaction Costs

Fadime Uysal

Student thesis: Master thesis


An employer will always want to hire the best job applicants for the job available, but hiring the best job applicants can cause complications. The employer will be interested in knowing the job applicant’s medical conditions, but because of the need to achieve employment these job applicants might not be willing to give full information.
This thesis will look at which demands the two protection laws: Health Information Act and Personal Data Protection Act set for an employer’s treatment and use of health information. Moreover it analyzes how health information is defined in the sense of acts. Both the Health Information Act and Personal Data Protection Act protect the employees’ personal information in the hiring process. Due to more tighten rules; Health Information Act takes precedence on areas where the two laws are the same.
The Health Information Act protects the employees before and during the employment, this means that a job applicant’s health information must not be used to restrict the employee to obtain or maintain employment.
According to the Health Information Act the employer cannot obtain or use health information unless this information has an impact on the work performance at the specific work. The scope of the Personal Data Protection Act is the procedural treatment of the Health Information Act. This means that the employer must have a specific consent from the job applicant and must maintain good data processing practice to treat health information.
Furthermore this thesis will clarify an employer’s financial incentive by transaction costs and sickness absenteeism. Lots of costs are associated with employing and dismissal - an employer would therefore like to minimize the transaction costs. To minimize the transaction costs employers use the Efficiency Wage theory. Here, employers pay their employees a higher salary, which leads to staff retention and fewer transaction costs. Finally this thesis will illustrate what tools an employer can avail to reduce absence. When an employee is absent the firm will has to cover the costs – this will be salary for both the absent and the replacement, during the sickness absenteeism.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2016
Number of pages83