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.

Your responsibilities when getting out of a lease

The end of your tenancy can mean having to make repairs to the property before you go. Know your liabilities and how much it could cost you

Your lease probably says you have to leave your premises in 'good and substantial repair and condition' when you leave. This usually means the same state of repair as when the lease was granted - so you don't have to make them perfect. For example, if you have been patching the roof to keep the water out, and the landlord decides to replace it with a new one, you don't have to pay for the new roof.

You only have to do what is reasonable, given factors such as:

  • the state of the premises when you moved in;
  • the reasonable expectations of any potential new tenant, given the age, locality, etc of the premises.

Your lease may also say that if you have made alterations, you must reinstate the premises to the same condition they were in when you moved in.

When negotiating your lease, make sure it includes a written and photographic record - a schedule of condition - that shows the state of the premises when you moved in.

But beware of the wording in your lease. Some leases require you to 'put' or 'keep' the premises in good repair and condition, which can mean having to leave it in a better state than it was in when you moved in. That's a critical difference, so take advice on the precise wording in your lease.

What if I haven't kept the premises in good repair?

If you don't fulfil your repairing obligations, the landlord can claim damages for any loss suffered. As well as the cost of the repairs themselves, these can include

  • the cost of supervising the work;
  • loss of rent and service charges while the work is being carried out;
  • producing and negotiating the schedule of repairs.

But if the landlord plans to destroy or significantly upgrade the premises, your repairs may be pointless. Find out the landlord's intentions if you can, and take advice.

Alternatively, you may be able to show that the cost of repairs to the property will be more than the reduction in its value. Or the landlord may have a new tenant who is prepared to carry out repairs themselves. If either applies, you could try to negotiate your way out of your repairing obligations.

Another option is to apply for a lease renewal (which is assigned to the new tenant, with their agreement) so you can roll your requirement to repair over into the new term.

Make sure you can prove the condition you left the premises in. If the landlord starts works, or new tenants make changes after moving in, you need to be able to produce a schedule of condition that shows the state the premises were in when you left.

Sometimes, instead of letting the landlord carry out repairs, it may be worth your leaving early so you can carry them out yourself.

Exercising a break clause

A final point - you may plan to end your lease by exercising a break clause. A break clause allows you to get out of your lease at certain points specified in the lease, provided you meet certain conditions.

One of the conditions is usually that you carry out specified repairs first. Depending on the wording of the clause, the slightest failure could make the break clause invalid - leaving you trapped in your lease.

Many tenants appoint a surveyor to advise on the works needed to comply with the lease and to ensure that they will be finished in time to exercise the break clause.

Stay up-to-date with business advice and news

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