Legal Factors Flashcards
(8 cards)
What is Business Law
Business law encompasses all of the laws that state how to form and run a business. This includes all of the laws that govern how to start, buy, manage and close or sell any type of business.
Company Law
When a business is incorporated, it creates a separate legal entity between the newly formed company and its owners (shareholders). The process of setting up a Limited Company (LTD or PLC) is known as incorporation.
An incorporated business is responsible for its own debts and liabilities. The debts of the company are no longer the debts of the owner, with the owner’s liability being limited to the amount they invest through shares
A sole trader or partnership operate under the legal basis of the owner and the business being one and the same. This means that the debts of the business are therefore also the debts of the owner!
Employment Law
The 2010 Equality Act makes it illegal for a firm to discriminate on the grounds of:
age
disability
gender reassignment
marriage and civil partnership
pregnancy and maternity
Race, religion or belief
Sex or sexual orientation.
Employers with workforces of over 20 must also make efforts to ensure that workplaces, where possible, are suitable for disabled employees.
This is in stark contrast to the sexist, homophobic and racially discriminatory policies that employees sometimes faced
Equality and Diversity
Each business in the UK is now expected to promote equality and value diversity by treating employees fairly and give everyone with the right skills the same chances.
In addition businesses should:
Provide equal access to training
Ensure equal opportunities for job roles and promotions
Actively encourage applications from a broad spectrum of the population where possible.
Employee- Employer Rights
In 1997 the UK signed up for the Social Chapter of the Maastricht Treaty which extended worker rights, such as a legal limit on the hours in a working week (maximum of 48 hours), and paid maternity and paternity leave.
Other Benefits Introduced by UK Governments Include:
Paid holiday leave
Flexible working requests
Employee right to an employment tribunal for unfair dismissal
Disciplinary and grievance procedures
Part-time employees hold the same rights as full-time staff.
Contract of employment
Employees must be provided with a written contract of employment within 12 weeks of starting employment.
Contracts outline the following information for employees:
employee conditions
Contents of contract
Contracts must state levels of pay, holiday entitlement, pension rights, disciplinary & grievance procedures and length of notice period.
It also protects employees against unfair dismissal; however, this protection only comes into effect after two years of service.
Contract terms could be given in many forms:
e.g written contract
Consumer protection
Consumer rights act 2015- This Act covers the purchase of all goods, services and digital content.
When you buy a good or service (including online), this Act states that you are entering into a contract with the retailer.
Goods must therefore be fit for purpose and accurately match their description
