Business law governs how UK companies operate, both on home ground and abroad. It is multi-faceted, covering everything from finances and product development to staff and customer rights.
Its vital for businesses to operate within the law. Ignoring legal guidelines could expose you to customer complaints and claims, poor relationships with other companies, and even government penalties. This gets even more complicated with cross-country deals, which is why many companies use expert lawyers for help with international business expansion to ensure they remain compliant.
Specific rules and regulations are in place for each industry, but there are several key business laws that apply to companies across all sectors. Below we explore four of the major laws that impact all businesses and why they are important.
4 important laws for all businesses
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Contractual law
Contracts are used in all aspects of business, from employment documents to sales and trade. These legally binding agreements outline the specific terms of engagement, the expected behaviours of each party, and details of the termination process.
These agreements can be verbal, but it’s best for companies to have written contracts where possible. Having a signed contract in place protects the interests of both parties and helps to swiftly resolve any disputes.
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Tax law
All businesses based in the UK must pay tax on their profits. These are compulsory financial charges imposed by the government to help fund public spending. This requires companies to maintain detailed accounting records and prepare a Company Tax Return each year.
There are other taxes that affect UK businesses as well, which is what makes tax law so complicated. These include Value Added Tax (VAT) which applies to some foreign trade deals and Capital Gains Tax on the profit made from selling a company asset.
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Employment law
As you will guess from the name, employment law is the guidelines for hiring, managing, and firing staff. This includes the rights of your employees, but also gives you license as the employer to terminate contracts with staff who are breaking company guidelines.
Before you put together your contracts of employment, make sure you have a thorough understanding of employment law. You need to make sure that your workspace aligns with the guidelines for employee safety and that the rights of you and your workers are protected.
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Intellectual property
This branch of business law relates to the development and sale of intellectual creations – in other words, it protects unique ideas from being stolen or replicated without consent.
Your right to the ownership of an idea or product is established through means such as copyrights, trademarks, and patents. Even something as simple as a logo or watermark signifies that you have sole control over your invention, from its design and manufacture to distribution.
