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.

Pension reforms must work for small employers says FSB

1 July 2025

Changes to workplace pensions could pile more pressure on small employers, risking higher prices, fewer jobs and slower growth, the Federation of Small Businesses has warned.

A new report by the Federation of Small Businesses (FSB) has found that proposed government workplace pension changes could see small firms having to raise their prices or cut staff.

FSB research finds that auto-enrolment is already "piling cost and complexity" onto small employers. Most employers say that decoding pension rules is a headache (53%), and a quarter (24%) are paying over £500 a year for advice - even before new changes are introduced.

The second phase of the government's Pensions Review, due later this year, could heap further pressure on small firms that are already dealing with bigger wage bills and mounting National Insurance contributions (NICs), according to the FSB. Small employers want to do right by their staff - but 79% are concerned about the rising cost of employment.

"Entrepreneurs have taken on auto-enrolment, absorbed the costs, navigated the jargon and kept paying into their staff's pensions even when their own margins have fallen. But goodwill has limits." Tina McKenzie, FSB policy chair.

Auto-enrolment pension reforms

Potential changes to workplace pensions could include a rise in contributions. If employer pension contributions were to double to 6%, for example, 92% of small employers would have to make difficult decisions:

  • 52% would raise prices;
  • 38% would recruit fewer workers;
  • 34% would cut profits or absorb costs;
  • 14% would reduce the number of employees.

One of the proposals could see pension contributions applied from the very first pound earned, instead of the current £6,240. This would see 82% of small employers affected negatively, including 19% that would cancel or scale down plans for investing in their business. Over one-third (36%) of small business owners say they would have to raise prices and 32% say they would cut their profits or limit their earnings.

"If the government wants pensions policy to succeed, it must prioritise clarity over complexity and provide the right support. This is not about resistance to pension reform, it's about the cumulative burden of regulation and the rising cost of employment. Small firms are already feeling the pinch - NICs and wage increases are really taking their toll - and any new reforms could push many to breaking point. This is no time to add new burdens. Ministers should pause, take stock and think carefully before stacking more costs on firms already under strain." Tina McKenzie, FSB policy chair.

What's next for workplace pensions?

The Federation of Small Businesses is calling for phase two of the Pensions Review to look at the financial and admin burden on small businesses, including the cost of advice, running payroll and getting to grips with the rules, before bringing in new proposals. Last November, the Labour government said it would only make changes to auto-enrolment if the impact on businesses was fully considered.

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.