PESTEL (V) : Legal Environment

Laws come from common law, parliamentary legislation and government regulations derived from it and obligations under EU membership and other treaties.


Legal factors affecting all companies:

1. General legal framework: contract, tort, agency (way of doing business)

2. Criminal law (theft, insider dealing, deception, industrial espionage)

3. Company law (directors, reporting requirements, takeover proceedings, shareholders’ right, insolvency)

4, Employment law (trade union, social chapter provision, minimum wage, unfair dismissal, redundancy, maternity, equal opportunities)

5. Health and safety (fire precaution, safety procedures)

6. Data protection (use of information about employees and customers)

7. Marketing and sales (customer protection law, what is or isn’t allowed in advertising)

8. Environment (Pollution control, waste disposal)

9. Tax Law (corporate tax, PAYE, National insurance contribution, VAT)

10. Competition law ( general illegality of cartels)


(source: BPP Learning Media)



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