C2 New Government Legislation and Statutory Controls
Government legislation is the rules and principles that are used to govern a country to promote conduct by individuals and organisations that benefit society as a whole. Statutory controls are the specific actions and processes that individuals and organisations need to take to adhere to government legislation.
Examples of legislation and statutory controls include;
National Minimum Wage (legislation) and requirements for reporting payments to employees (statutory control).
Health and Safety at Work Act (legislation) and requirements for specific safety equipment and staff training (statutory control).
Clean Air Act (legislation) and the permissible level of pollutant a business is allowed to release (statutory control).
The introduction of new laws and legislation can create a lot of uncertainty making it difficult for businesses to plan for growth. Businesses may need to invest in new systems, equipment and training which can increase costs and disrupt operations. Compliance with regulations can affect how quickly businesses can adapt to changing demand, limiting innovation.