Legal compliance is a situation whereby a business segment follows a specific legal framework enacted by the government. For each business segment, there are rules and regulations that are required to be followed in order to achieve a specific goal. Falling to follow these rules can lead to regulatory issues that affect the business performance by leading to loss of profits and enable competitors to take advantage.
Specific Legal frameworks that we studied in team assignment comprises of various documents which include the legislation, contracts, constitution, and regulations. These sets of documents related to one another and together they form a legal hierarchy. Team assignment help improve understand that a well-designed legal framework provides the rules and regulations on how the state institutions are structured, how companies obtained and manage licenses, management of the environment, fiscal terms and laws governing the payments between state and the companies, extractive projects and neighboring communities relationships, how the government manage natural resources’ revenues, accountability and disclosure of the public information and the behavior of the active public official in various sectors (Scholz, 1986).
Business segments have a responsibility to comply with legal regulations in order to qualify to carry out business. Failure to comply with these rules changes the status of the business. Change in status if not remedy quickly can lead to serious problems for the business and the individual owing the business and the person carrying out the business on the behalf of the owner.
Change of status due to failure to comply with the legal regulatory led to various personal regulatory issues(Perdue, 2003). One of the personal issues is a possible loss of access to courts for example if one needs to carry out some legal action such as enforcing a contract, it is not possible. Another effect is the inability of stating a new business since may business need proof of good standing for opportunities to minimize the risks. Another regulatory issue is a personal liability in case of noncompliance of the rules by the employees the owner of the business can be held liable by the state.
The legal framework that exists in the work environment covers a wide range of human resources such as health and safety, recruiting, hiring, compensation, performance appraisal, and labor relations. Employment law and compliance are put in place to ensure that the employers complying with the legal framework in their treatment of employees. Federal laws in the workplace include anti-discrimination law, compensation law, health and safety law, employment privacy law, the family and medical leave act, freedom of information act and labor relations law (Terry, 2003). The legal framework helps to provide a peaceful and conducive work environment to the employees by ensuring that the employers comply with the rules of treating their employees fairly. Another aim of the legal framework is to prevent and remedy the mistreatment of the employees in the workplace. Mistreatment of the employees in the workplace is a major threat to the health and safety of the employees which can lead to legal cost and financial problems of the employers. Failure of the employers to comply with federal and state laws and regulations leads to some problems to the company such as forced shutdowns, difficulties in securing capital funds or financing help, fines and penalties and imposition of tax liens(Perdue, 2003).
Scholz, J. T., & Wei, F. H. (1986). Regulatory enforcement in a federalist system. American Political Science Review, 80(4), 1249-1270.
Terry, M. (2003). Employee representation: shop stewards and the new legal framework. Industrial Relations: Theory and Practice, 2, 257-284.
Perdue, W. C., Stone, L. A., & Gostin, L. O. (2003). The built environment and its relationship to the public’s health: the legal framework. American journal of public health, 93(9), 1390-1394.
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