Establish business and legal requirements

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BSBSBM401A	Establish business and legal requirements
Unit Descriptor	The unit involves identifying and complying with business legal and administrative requirements. It is suitable for setting up or existing micro and small businesses or a department in a larger organisation. This unit is related to BSBSBM404A Undertake business planning.

ELEMENT	PERFORMANCE CRITERIA
1 . Identify and Implement business legal requirements	Possible legal options for the business structure are identified Legislation, codes and regulatory requirements affecting the structure and operations of the business are determined and procedures are developed and implemented to ensure full compliance
2 . Comply with legislation, codes and regulatory requirements	Systems are established to ensure the legal rights and responsibilities of the business are identified, and the business is adequately protected, especially in regard to Occupational Health and Safety, business registration and environmental requirements Taxation principles and requirements relative to the business are identified, and procedures are followed to ensure compliance Legal documents are identified, carefully maintained and relevant records are kept and updated to ensure their ongoing security and accessibility Insurance requirements are identified and adequate cover is acquired Compliance with legal and regulatory requirements monitored Investigations conducted to identify areas of non-compliance with legal and regulatory requirements and corrective action taken where required
3 . Negotiate and arrange contracts	Legal advice on contractual rights and obligations is sought, if required, to clarify business liabilities Potential products/services are investigated and assessed to determine procurement rights and to ensure protection of business interests where applicable Conditions applying to production/provision of relevant products and services are investigated to ensure compliance with legal and contractual requirements as required Contractual procurement rights for goods and services including contracts with relevant people , negotiated and secured as required in accordance with the business plan Options for leasing/ownership of business premises identified and contractual arrangements completed in accordance with the business plan

Key Competency	Examples of Application	Performance Level
How can information be collected, analysed and organised?	to establish business structure	2
How are ideas and information communicated within this competency?	to determine business legal requirements	3
How are activities planned and organised?	to comply with legal requirements for the business legal structure	3
How are problem solving skills applied?	to obtain compliance with legal requirements	2
How are mathematical ideas and techniques used?	to support the business operation	2
How is use of technology applied?	to reduce risk and establish business legal structure	3
How is team work used within this competency?	to optimise business performance	1

Range Statement

Legislation, codes and national standards relevant to the workplace which may include:

award and enterprise agreements and relevant industrial instruments
national, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
relevant industry codes of practice

Occupational Health and Safety and requirements must include:

establishing hazard management arrangements to identify workplace specific hazards
establishing hazard management arrangements to assess and control the risks associated with workplace hazards including development of written safe operating procedures
establishing OHS record keeping arrangements in accordance with regulatory requirements
developing and implementing procedures to evaluate and review effectiveness of risk control measures
the establishment and maintenance of a system for managing OHS
OHS Duty of Care responsibilities (knowledge of legislation)

And may include:

establishing arrangements to induct, train and provide information on workplace hazards and their control, to all workplace personnel
developing workplace arrangements to consult employees

Legal options for the business structure may include:

company, trust, partnership or sole trader structure or form of business recognised by law. It may be profit or non-profit based

And may be influenced by:

preferences of owners
requirements of financial backers
confidentiality
taxation
superannuation
ownership transfer
partnership considerations

Ownership transfer considerations may include:

ownership transfer may occur as a result of forced business closure, death, divorce, sale of business, buying out other partners, succession planning etc

Legislation, codes and regulatory requirements may include:

local, state, national and international legislation and regulations affecting business operations such as: business registration, planning and other permissions, license to practice, franchising, agencies, licensing eg (Real Estate Agents, Customs Brokers), fire, occupational health and safety and environmental legislation, industrial, taxation including GST, copyright, patent trademark and design regulations, codes of practice, standards and anti-competition/monopoly, anti-trust and consumer legislation, Law of Torts

Legal rights and responsibilities may include:

marketing the business in accordance with consumer legislation
operating the business with a duty of care (Law of Torts)
obligations imposed by choice of business structure

Taxation principles and requirements may include:

tax file number, Australian Business number, GST registration, PAYG and withholding arrangements
relevant taxation requirements/obligations for business

Legal documents may include:

partnership agreements, constitution documents, statutory books for companies (Register of Members, Register of Directors and Minute Books), Certificate of Incorporation, Franchise Agreements and financial documentation, appropriate software for financial records

Recordkeeping may include but is not restricted to:

personnel, financial, taxation, OHS and environmental

OHS recordkeeping may include:

workers compensation and rehabilitation;
hazardous substances register;
material safety data sheets;
manufacturers' and suppliers' information;
OHS audits and inspections;
first aid and medical; accident reports and investigations
plant maintenance and testing;
instruction & training

Insurance requirements may include:

third party bodily injury on motor vehicles
workers compensation
any other insurance cover declared mandatory by State or Federal legislation

Procurement rights to products and services may include:

royalties, copyright, patents, trademarks, registered design and applications, intellectual property, software licenses, franchises, agencies and any form of licensing

Contracts with relevant people may include:

owners, suppliers, employees, landlords, agents, distributors, customers or any person with whom the business has, or seeks to have, a performance-based relationship

Evidence Guide

Critical Aspects of Evidence

The capacity to implement a systematic approach to identifying, managing and meeting legal business requirements and
Interpreting compliance data and formulating appropriate action

Underpinning Knowledge

National, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
Relevant OHS responsibilities and procedures
Business registration and licensing requirements
Legal rights and obligations of alternative ownership structures
Relevant taxation and related legislative requirements and legal rights and responsibilities related to the business
Bookkeeping and record keeping procedures to meet minimum financial and legal requirements
Award and enterprise agreements, where required
Industrial law relevant to recruitment and dismissal of employees
Creation and termination of relevant legal contracts
Duty of care imposed by Law of Torts
Relevant industry codes of practice
Relevant consumer legislation

At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts.

Underpinning Skills

Literacy skills to interpret legal requirements, develop company policies and procedures and analyse compliance information
Communication, reporting and consultation skills necessary for the business operation
Time management skills to prioritise tasks and to meet datelines
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities

Resource Implications

The learner and trainer should have access to appropriate documentation and resources normally used in the workplace

Consistency of Performance

In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations

Context/s of Assessment

Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range of Variables
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit