Sample Essay on Legal and Regulatory Factors Affecting Business

All businesses have to face numerous handles when they are expanding their reach, capabilities and size. There are legal and regulatory aspects that play a crucial role in determining the operations of a business. Some of the top legal and regulatory factors businesses need to beware of are as listed below:


There are numerous health care reforms that continue to affect businesses and employees. Though businesses are not required to provide insurance to employees, those that decide to do so are forced to comply with the health care program which is focused on shared responsibility. Employers are also supposed to determine their applicable large employer status and ensure they keep proper track of employee hours.

Protection of employee legislation

There are legal laws passed by governments to protect the interests of employees. Some of these are laws against unfair discrimination when people are applying for jobs or at the work place. These laws also forbid unfair discrimination on the basis of religion, age, color, sex and race.  There are legislations aimed at ensuring safety and health at work is upheld and these include:

  • Protecting workers from machinery that could be harmful to their bodies or health.
  • Employers should provide proper safety clothing and  equipment to all employees
  • A workforce environment that is reasonable and one that can be easily maintained by the workers.
  • Proper washing facilities and hygiene conditions should be provided for all workers.
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  • Workers should get adequate breaks in between their shifts
  • Protection of employees against unfair dismissals

Businesses don’t have the right to dismiss employees/workers because they joined a trade union or for being expectant. If a worker is going to be dismissed, proper warning should be provided and if this is not the case, the dismissal is viewed as unfair. In addition to this, many countries have legal rules aimed at ensuring that all workers get fair wages.
In this respect, many governments make it mandatory for businesses to provide written contract of employment. The contract should contain details such as the working hours, deductions if any, wage rate and other necessary details that are needed in order to make working conditions better. Minimum wages paid to workers in different sectors or professions is also set by the government.

Legislations to protect consumers

Most countries also have laws that protect consumers. These are designed to ensure businesses act in a fair manner towards consumers. For instance, they are supposed to provide goods that are of high quality. The Measures and Weight Act requires that goods sold should not underweight.
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