The Legal Register
that nobody maintains

IGNORANCE HAS A COST

Very few SMEs maintain a list of the laws that apply to them.

Businesses operating under ISO 9001, ISO 14001 or similar management systems will often maintain a legal register as a matter of routine. Outside of those environments, however, many SMEs have no equivalent process. They may rely on accountants, HR advisers, trade bodies, insurers, newsletters and occasional Google searches to keep them informed, but the responsibility is still theirs.

The challenge is that legislation changes whether you are paying attention or not.

• Employment law changes.
• Health and safety requirements change.
• Environmental regulations change.
• Data protection requirements change.
• Industry-specific obligations appear and disappear.

A good legal register should be more than a list of laws. It should identify how the business complies, what policies support compliance and who is responsible for maintaining them.

For example:

𝗔𝗰𝘁 / 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻: Equality Act 2010
𝗔𝗿𝗲𝗮: Employment
𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝗲: HR Manager
𝗘𝘃𝗶𝗱𝗲𝗻𝗰𝗲 𝗼𝗳 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲: Equal Opportunities Policy

A legal register typically contains many entries following this format, covering areas such as employment law, health and safety, data protection, anti-bribery and industry-specific regulations.

This simple exercise often reveals gaps. You may discover that a policy does not exist, is out of date, or has never been communicated to employees.

The register should be reviewed at least annually. Responsibility should be assigned to someone within the business and changes in legislation monitored through relevant update services, many of which are free. When legislation changes, the business can assess whether action is required and update its policies accordingly.

There is another benefit. A well-maintained legal register demonstrates governance. During due diligence, investors, lenders and potential buyers will often ask how compliance is managed, what policies exist and how legal changes are monitored. A legal register provides evidence that compliance is not being left to chance.

Creating a first draft is easier than ever. Modern AI tools can help identify legislation that may apply to your business, providing a useful starting point for review and validation.

Most businesses maintain an asset register because assets have value. A legal register recognises that ignorance has a cost.