Benefits of meeting legal obligations

Meeting legal obligations means complying with the law, for example by paying at least the minimum wage, treating every member of staff fairly and keeping the workplace safe. The benefits are not only about avoiding penalties; they also come from how employees respond.

Complying does not automatically make a business stand out, because almost every business meets the law. The gains come from avoiding trouble and from running a better workplace.

Avoiding penalties and conflict

A business that meets its obligations is less likely to be fined, taken to court, prosecuted or forced to close. A printing company that guards its machines and trains staff to use them safely, for example, avoids the disruption of a court case after an accident. It also avoids conflict with trade unions (organisations that represent workers) and pressure groups (campaigning groups). If pay or safety rules are ignored, a union may organise industrial action such as a strike, and a campaign group may publicly target the business, causing lost production and damaged relationships.

A motivated, stable workforce

Staff who feel safe and fairly treated are more motivated, and a motivated team works more productively. Employees are also more likely to stay, which improves staff retention and keeps experienced people in the business. It makes recruitment easier too, because current employees recommend the business as a good place to work. Better customer service follows: motivated staff greet customers warmly, solve problems patiently and treat people with respect. At a family-run bicycle repair shop, mechanics who are paid correctly and given proper safety equipment feel valued, so they stay longer and give customers a better experience.