Skip to main content
Practical employment law information to support your business, from Clover HR

Search

Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

Family finance gets three in ten small firms off the ground

20 May 2024

A new survey has found that almost one-third of UK small businesses have received financial backing from a family member to help them get started.

An online survey conducted by Panelbase, on behalf of small business lender Iwoca, has found that 29% of small business owners in the UK have received financial backing from a member of their family - and three-quarters (74%) of them say the money was essential for setting up their business.

Over a third (36%) of business owners polled said they had received more than £25,000 from a relative. One in five (19%) had received more than £50,000. The findings also showed that:

  • 19% received up to £5,000;
  • 15% received between £5,001 and £10,000;
  • 22% received between £10,001 and £25,000.

The findings indicate that parents and partners are the relatives most likely to offer financial support; however, siblings, grandparents and in-laws have also provided finance.

According to the research, 37% of business owners said they asked for financial support from a family member because they wanted to start a family business; 35% of entrepreneurs asked for funding because they needed the money urgently. Other reasons for asking family for money were:

  • 16% said they couldn't afford loan repayments;
  • 12% said they didn't know how to apply for finance;
  • 12% either had their funding application rejected by a bank or the bank's financing terms didn't work for their business.

"Time and again data shows that the major banks are reducing their appetite to lend to small businesses, meaning they're increasingly having to look for finance elsewhere. This means families have also been filling the gap. From parents to grandparents to brothers and sisters, millions of small business owners are seeking the support of their families to help get their businesses off the ground." Mark Di-Toro, director at Iwoca.

Money issues can undoubtedly put a strain on family dynamics; however, while 9% of the small business owners polled said that their relationship with their relative had worsened due to becoming financially involved in their business, nearly half (47%) said it had led to a better relationship.

Even so, nearly half (47%) of small businesses predicted that they would prefer to go to a bank for financing in the future; a third (29%) said they would still opt to raise the money from family members.

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.