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

Starting up

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

Pay and pensions

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.

Business ownership and management

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

Working time: hours, leave, flexible working

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

Employment policies

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

Finance and business strategy

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.

Sickness and sick pay

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

Marketing and selling

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

Maternity, paternity and adoption

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

Contracts, disputes

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

Discrimination

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

Commercial premises law

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

Managing home workers, remote workers, lone workers

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

Health and safety

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

Information and consultation

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

Data protection and IT

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

Discipline and grievance

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

Dismissals and redundancies

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

Intellectual property

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

Employment tribunals

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

Exit strategies

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.

Personal law

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

How to value your business - checklist

You might value your business for a number of reasons: to sell the business, to raise equity, to create a market for internal shares or to motivate the management team. If you're valuing the business in order to sell it, you need to arrive at a fair value. Here are all the factors you should take into account

Weigh up what sets your business apart. Where the value lies in your business will depend on whether it is a mature, cash-generating business, a stable firm with significant tangible assets, or a new business with good prospects for the future.
Consider what skills and experience members of your staff have. If your employees have considerable expertise or unique skills sets, it can add to the value of your firm - especially if they are committed to the business and are tied in with clear employment contracts.
Take intangible assets into account. Consider what intellectual property your business has created. The worth of a business can also often rest on goodwill - its relationships with customers and suppliers and their willingness to continue buying from or supplying your business.
Find out whether your sector has its own established industry criteria for valuation. For example, an estate agency will take into account the number of outlets it has.
Speak to a financial adviser who understands your sector. They will be able to review your accounts and help provide a valuation based on your profit margins and cash flow forecasts.
Assess the value of your physical assets. Start with the value of those detailed in the accounts – this is known as net book value – and check to see if you have any other assets you can include.
Consider if you can use a price earnings ratio (P/E) – the value of your business divided by its most recent profits after tax. This is only applicable to established firms with a profitable history. If you are using this method, research the value of other businesses in your sector.
Weigh up the costs of setting up a similar business from scratch. This is referred to as the entry cost, and includes the cost of purchasing equipment, recruiting staff, developing products and marketing to customers.
Consider valuing your business at a multiple of its earnings. Smaller businesses are usually valued at lower multiples than larger companies. Profits are adjusted to include any one-off items.
Why are you selling the business? A business that is being wound up or where the owner is being forced to sell is likely to be worth less than a high-growth, profitable business.
Remember your business is only worth what the purchaser is prepared to pay. Most business owners value their business too highly, so don't be disappointed if you don't get your original asking price.