Business law

Many people, including some leading business representatives, argue that small firms are over burdened by the weight of business law they must comply with and that many owner-managers struggle to keep pace with an ever changing and growing mountain of legislation.

Does business law help or hinder small firms?

Estimates vary, but some say dealing with ‘red-tape’ takes up an average of two weeks of a small-business owner’s time during an average year. Admittedly, such claims come from the ‘anti brigade’, but regulations cannot be avoided.  

But as well as giving business managers more work to do (and in some cases worry about), the cost implications of complying with business laws and regulation can be considerable, especially where significant legal changes are introduced. Potentially, there are also fines (some considerable) for firms that fail to live by the letter of the law – however unintentional the transgression.

But should business law be viewed simply as something that restricts the freedom and prosperity of businesses?

Laws can protect your business

While it seems much legislation has been sanctioned by those with no experience of the realities of running a small business, there are many laws that protect the owners’ interests.

Such legislation is designed to stop businesses from being harmed by the illegal actions of the worst types of competitors, customers, suppliers, employees and even government. 

And although opinions will always differ over what is good and bad, fair and unjust, there can be few who would deny that the law has an important responsibility to protect the health and safety of employees, the wider public and the environment from the worst excesses of business.

Complying with business law

Every year in the UK, new and amended regulations come into force on the Common Commencement Dates of April 6 and October 1.

Complying with every rule and regulation might seem intimidating if you’re about to start up a new business. However, many people find it painless enough - but much will depend on the nature of your venture. For obvious reasons, some types of business and sectors are more heavily regulated than others.

The information on this website is intended purely as an overview of key laws that apply to small firms. If ever in any doubt – seek professional legal advice.

But for starters, we’ve split our coverage of legal issues into: licences and registrations you’ll need, laws covering how to protect yourself, your staff and customers, making sure your business is insured (including instances when insurance is compulsory) and, of course, the well-known (and often-feared) health and safety regulatory regime. You’ll also need to know about intellectual property (IP), which includes protecting copyright, trade marks or designs – and ensuring you’re respecting other businesses’ rights.

Employment law

And if you want to know more about what you’re legally obliged to do when you take on staff, including contracts and other employment regulations, have a look at our Employment section.

If you’re about to start up, it’s a really good idea to read through them all to make sure you’re aware of what will apply to you – now and as your business grows.

For more in-depth information on legal issues, read The No-Nonsense Guide to Government rules and regulations for setting up your business, available from Business Link. You can also visit the Business Link website to seek general legal advice.

Alternatively, try your trade association (find contact details on the Trade Association Forum website) or local Enterprise Agency (find it on the National Enterprise Network website).

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