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.

Forming a business - checklist

When forming a business make sure you get it right from the start. Check the key considerations and legal requirements to prevent expensive mistakes.

Involve professional advisers (eg an accountant) from the outset.
Consider whether you will be in sole control of the business or will share ownership or involve external investors.
Consider whether a company or limited liability partnership (LLP) will offer worthwhile financial flexibility, protection of personal assets and credibility with customers, suppliers and lenders.
Consider whether the administrative burden and costs, and the disclosure requirements, of a company or limited liability partnership will be justified.
Investigate the likely effect of different business forms on your tax and National Insurance position.
Choose the most appropriate business form: sole trader, partnership, LLP or limited company.
Draw up an agreement with the key individuals involved covering, for example, strategy, remuneration, responsibilities and 'what if' scenarios.
Choose a trading name; check that it is permitted, and is not already being used by another, similar business.
Use a company formation agent (or your accountant or solicitor) for the legal formation of a company or limited liability partnership.
Check any legal requirements (eg licences) with your local authority and organise insurance.
Contact HM Revenue & Customs to organise tax and National Insurance (and PAYE if you will be an employer); if necessary, register for VAT with your VAT office.
Set up a business bank account so that you can keep your business and personal finances separate.
Organise systems to keep records and ensure that you can comply with statutory requirements (eg filing annual returns and confirmation statement).