1.53 Legislation and Business

Legislation refers to the laws that operate in a specific geographical territory. The purpose of legislation is to protect the rights of consumers, employees and employers.

You need to know some of the laws which apply to business and the impact on a business of complying with them.

The Consumer Rights Act (updated 2015)

Goods must be:

  • as described
  • fit for purpose
  • satisfactory quality

This law now includes digital products and services

For more information on this law click here.

Under this law the SELLER is responsible for sorting out any issues NOT THE MANUFACTURER. If something has gone wrong the customer may be entitled to a refund, repair or replacement. The table below sums up when a customer has rights under this law.

when you have rights

Employment Law

This law relates to recruitment, pay, discrimination, health & safety.

Recruitment – an employer cannot discriminate on age, race, gender, religion etc.

Pay – National Minimum Wage is the legal minimum that can be paid to workers in the UK. There is also the National Living Wage which is paid to workers over 25. You can check the current rates by clicking here.

Discrimination – once in employment an employer cannot discriminate on age, race, gender, religion etc.

Health & Safety – all workers have a right to work in places where risks to their health and safety are properly controlled.

The impact on a business of complying with legislation is, as you might have guessed, that is represents a COST. Safety equipment has to be bought / maintained / replaced, people need training, etc.

The consequences of complying with legislation can be both positive and negative, as summed up in the table below:

consequences of legal obligations