Compliance: What it Means for Your Business

Legal Compliance

In business terms, compliance is about ensuring companies of all sizes follow the existing national and international laws. It is the duty of the company to ensure all of its employees abide by these laws so that the business remains legally compliant.

The Companies Act 2006 is the main legislation that forms the primary source of UK company law. The Act provides a comprehensive code for the United Kingdom, with key provisions being:

  • The Act codifies certain existing common law principles, such as those relating to directors’ duties.
  • It transposes into UK law the Takeover Directive (creating a legal framework for takeovers) and the Transparency Directive (transparency of information) within all companies.
  • It introduces various new provisions for both private and public companies.
  • It applies a single company law regime across the UK, replacing the two separate systems for Great Britain and Northern Ireland.
  • It updates and amends almost all of the Companies Act 1985 to fit within the modern workplace.

What Legal Compliance is relevant to your business?

All businesses in the UK need to be aware of the legislation they need to follow so that their company has legal compliance. Some common things to consider on your legal compliance checklist are as follows:

  • VAT registered?
  • Do you keep records of all tax and accounting information through the HMRC?
  • Does your company follow laws on fair employment?
  • Are employee contracts transparent?
  • Do you comply with GDPR (General Data Protection Regulation)?
  • Does the company have anti money laundering regulations in-place?
  • Are you aware of those affected by contractual agreements with third parties?
  • Do you have Health & Safety regulations in your place of work?
  • Relevant signage and first aid equipment.
  • Training courses/schedules to keep employees safe.
  • Insurance in the event of a workplace accident.
  • Does your company require any sector-specific licences or regulations?

Compliance with Standards and Regulations

It is important to understand that businesses need to comply with certain standards and regulations as part of UK law. For example, products that are sold need to meet the required safety standards to be sold locally and internationally.

One of the most recognised certifications is ISO (International Organization for Standardization), which are internationally recognised standards agreed by experts. An ISO certificate in a specific area can allow your company to be recognised for meeting standards and regulations globally. These ISO certificates cover a huge range of areas such as:

  • ISO 9001 – Quality.
  • ISO 14001 – Environmental.
  • ISO 45001 – Health and Safety.
  • ISO 22716 – General Manufacturing Practice (Cosmetics).

Joining the BRC (British Retail Consortium) is another way to be recognised for meeting quality standards and legal obligations. The organisation’s primary aim is to offer protection for the end consumer by standardising quality, safety and operational activities. It is especially important to the food industry, as it is used by over 22,000 suppliers across 123 countries.

Management Systems

A Management System is a set of policies, processes and procedures used by an organization to ensure that it can fulfil the tasks required to achieve its objectives. It is important because you need to have a controlled system in place to successfully manage your business. Everything from your products/services, strategies and business plans need a Management System. These typically consist of written policies and procedures to manage staff effectively and help them achieve your business goals. Management Systems also form a reference point for compliance, which is crucial for a business to meet its legal obligations.

Auditing Systems

Auditing Systems are essential for UK companies because they promote reliability with finances and product quality. This is because they can help review and restore financial stability and aid future budget planning to keep a company profitable. If you regularly check your systems it will identify if anything is missing, helping to ensure compliance and provide a clearer outlook.

Grow Your Business, Grow Your People

Let us show you how to implement policies and procedures, both legal and industry-specific, to effectively manage your business and achieve your goals. Our aim is to help you review and continuously improve your company through regular auditing, training and staff and management systems.

To find out more about how Hunter Global Business Solutions can help your business grow with new systems that ensure compliance call us on 01636 701386 or complete our contact form to book a free one-hour consultation with Joanne Ferguson.