PESTLE: Legal Factors

What is Business Law?

The laws that govern how to start, buy, manage and close/sell any type of business. To create a “level of playing field”

Company Law

• The process of setting up a Limited Company (LTD or PLC) is known was incorporation

• The debts of the company are no longer the debts of the owner

Employment Law

The 2010 Equality Act makes it illegal for a firm to discriminate on the grounds of:

• age

• disability

• gender reassignment

• marriage and civil partnership

• pregnancy and maternity

• race, religion/belief

• sex or sexual orientation

—Employers with workforces of over 20 must be suitable for disabled employees

Equality and Diversity

• treating employees fairly

—In addition business should:

• Provide equal access to training

• Equal opportunities for job roles and promotions

Benefits of Promoting Equality (Employees and Employers)

Employer Benefits:

• Firms can recruit top talents if job applications are open to all

• Increased creativity as workers from different backgrounds approach problems in different ways

• Employee turnover costs are reduced when people feel comfortable, value and happy in workplace

• Less likely to face expensive discrimination claims from staff

Employee Benefits:

• Staff feel empowered that they’ve been hired purely on ability

• Staff are more motivated bringing about higher levels of productivity

• Staff are more engaged and value their time with the business. Increases in productivity are the result.

Health and Safety Duties

(Employees and Employers)

Employer’s Duties:

• Identify potential hazards as part of a detailed risk assessment

• Explain how risks need to be managed to employees

• Appointment a health & safety representative

• Provide free health & safety training

• Provide any required safety clothing free of charge

Employee’s Duties:

• Follow all training advice provided when in workplace

• Pay reasonable care and attention to their own and others’ safety

• Fully co-operate on any healthy and safety matters and training

• Report any potential health and safety issues that they identify

• Employer-Employee Rights

In 1997 the UK signed up for the Social Chapter of the Maastricht Treaty which extended worker rights, such as a legal limit on the hours in a working week (maximum of 48 hours), and paid maternity and paternity leave.

Other Benefits Introduced by UK Governments Include:

• Paid Holiday Leave

• Flexible working requests

• Employee right to an employment tribunal for unfair dismissal

• Disciplinary and grievance procedures

• Part-time employees hold the same rights as full-time staff

Contract of Employment

Employees must be provided with a written contract of employment within 12 weeks of starting employment

Contract outline the following information for employees:

• Employment Conditions

• Duties

• Rights

• Responsibilities

Need to Know about Consumer Protection Law

Consumer Rights Act 2015

• Goods must therefore be fit for purpose and accurately match their description e.g. a pair of Wellington boots should not leak

• Consumer is entitled to a full monetary refund

• Consumer is entitled to take a business to court, to sue them and seek repair/replacement of the good

Consumer Contracts Regulation

• This Act offers consumers protection when buying goods/services over the telephone/online

• It provides a 14-day ‘cooling-off’ period

• Costs must be clearly outlines to the consumer

Trading Standards

• Trading standards officers are responsible for visiting businesses and ensuring compliance with consumer law

Competition Law

• The aim of competition is to encourage greater investment and improved levels of efficiency. It should also drive down prices and provide greater choice.