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

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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.

Clothes hire legal issues

There is a wide range of legislation that may apply to your clothes hire business. Some of the key areas are listed below.

What licences do clothes hire businesses need?

There are no licensing requirements relating specifically to clothes hire businesses, but you should, however, be aware of the following:

  • if you operate your own dry cleaning facilities on the premises then you will need a 'dry cleaning permit' or 'permit to operate' from your local authority. There is a fee for this permit. Contact your local environmental health department for more information
  • if you hire out any items on a long-term basis (longer than three months) you may need consumer credit authorisation from the Financial Conduct Authority (FCA)
  • if background music is played in the shop you will probably need a Music Licence from PPL PRS Ltd
  • if you keep computerised records of individuals' personal details you may need to register with the Information Commissioner's Office (ICO)

Hire contracts

There is a large amount of legislation covering the sale and supply of goods and services, consumer contracts and rights. You should draw up a standard contract of hire to use each time you hire an item of clothing. Using a sound hire contract is vital in order to avoid misunderstandings and resolve any disputes that may arise.

Detailed information about fair contracts is available on the Trading Standards Business Companion website. You could seek help with drawing up your standard hire contracts from a professional solicitor.

Goods and services

There is a range of legislation that applies to all businesses to protect the interests of the customer. Goods and services must not be misleadingly described. You must make sure that all clothes supplied are fit for the purpose for which they are intended - so for example, ski wear hired out for a skiing holiday should be appropriately warm and weatherproof. If you offer repairs, alterations or dry cleaning of customers' clothes, these must be done with care.

Hazardous substances

Various hazardous substances may be used by a clothes hire business (especially if dry cleaning is carried out in-house) and specific regulations cover their use, storage and disposal. Ensure that your and any employees' exposure to potentially harmful substances is minimised. This might involve precautions such as using gloves to limit exposure of the skin to cleaning chemicals and similar products. Hazardous substances must be stored correctly too.

Special environmental regulations cover the safe use of solvents like dry cleaning chemicals. If you carry out dry cleaning you'll need to register with your local authority and comply with the regulations. For more information, contact your local environmental health department.

Health & Safety, fire

You must comply with workplace health and safety and fire safety legislation. 

Specific regulations cover such things as the safety and maintenance of equipment (such as cleaning equipment), and the use of protective gear when appropriate.

Be aware that there may be particular risks associated with the clothes hire industry - these include flammable fabrics and materials and, if applicable, laundry-related risks.

Employment legislation

Anyone employing staff must comply with employment legislation. Important areas of legislation include recruitment, employment contracts, pay, working hours, holidays, employment policies, sickness, maternity, paternity, discrimination, discipline, grievances, dismissals, redundancies and employment tribunals.

Insurance for clothes hire businesses

Contact an insurer or insurance broker and explain exactly how your business will operate - they will then explain what insurance cover you must have by law, and other cover you should consider. This might include:

  • employer's liability
  • public liability
  • product liability
  • contract indemnity
  • premises, premises contents and stock of clothes
  • cover of clothes out on hire
  • cash
  • business interruption
  • motor insurance (for delivery vehicles)

The Textile Services Association (TSA), whose membership includes textile hire specialists, offers industry-specific insurance to its members at reduced rates.

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