Application
This unit describes the skills and knowledge required to identify and comply with all regulations affecting the business.
It applies to individuals operating a small business who use analytical skills to interpret legislation and regulations and develop procedures to manage compliance.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify and implement business legal requirements | 1.1 Identify and research possible options for the business legal structure using appropriate sources 1.2 Determine legislation and regulatory requirements affecting operations of the business under its chosen structure 1.3 Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements |
2. Comply with legislation, codes and regulatory requirements | 2.1 Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to work health and safety (WHS), business registration and environmental requirements 2.2 Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance 2.3 Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility 2.4 Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities 2.5 Conduct investigations to identify areas of non |
3. Negotiate and arrange contracts | 3.1 Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities 3.2 Investigate and assess potential products and services to determine procurement rights and ensure protection of business interests where applicable 3.3 Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan 3.4 Identify options for leasing or ownership of business premises and complete contractual arrangements in accordance with the business plan |
4. Identify and treat business risks | 4.1 identify potential internal and external risks to the business 4.2 assess the probability and impact of identified risks 4.3 prioritise risks for treatment 4.4 develop actions to mitigate risks including identifying insurance requirements and adequate cover |
Evidence of Performance
Evidence of the ability to:
demonstrate a systematic approach to identifying, managing and meeting legal and regulatory requirements, specifically in regard to WHS, business registration and environmental requirements
ensure compliance, by:
following taxation and industrial relations principles
updating and maintaining legal documents
investigating areas of non-compliance
monitoring provision of products and services
taking corrective action where necessary
negotiate and arrange contracts, including:
seeking legal advice
investigating procurement rights
identifying options of leasing or ownership of business premises.
Identify, assess and treat risks specific to the business including
prioritising risks with highest probability of occurrence and greatest negative impact on the business
identifying insurance requirements
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
outline business registration and licensing requirements
identify all government legislative requirements relating to the specific business operation
explain creation and termination of relevant legal contracts
summarise relevant cultural differences and legal implications
describe legal rights and obligations of alternative ownership structures
outline necessary record keeping to meet minimum legal and taxation requirements
summarise relevant consumer legislation and industry codes of practice
outline the key steps in the risk management process
explain relevant insurance requirements and products.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:
office equipment and resources
business technology including internet access
specialist software for analysis of data
relevant legislation, regulations, standards and codes
relevant workplace documentation and resources
case studies, or where possible, real situations
interaction with others.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.3, 2.1-2.4, 3.2-3.5 | Identifies, analyses and evaluates a range of complex text to determine legislative, regulatory and related business requirements |
Writing | 1.3, 2.1, 2.3, 2.5, 3.1, 3.3, 3.5 | Prepares written reports and workplace documentation that communicate complex information clearly and effectively |
Oral Communication | 2.5, 3.1, 3.3 | Uses specific and relevant language to clearly articulate legal issues, and uses questioning and listening techniques to clarify solutions Participates in verbal negotiations using tone and language suitable to audience |
Numeracy | 2.2, 2.5, 3.3, 3.4 | Reviews, analyses, compares and contrasts numerical data which may be embedded in documents Calculates business insurance costs and compares costing options |
Navigate the world of work | 1.2, 1.3, 2.1 | Monitors adherence to organisational policies and legislative responsibilities and considers own role in terms of its contribution to broader goals of work environment |
Interact with others | 3.1, 3.3 | Plays a lead role in situations requiring effective collaboration, demonstrating high-level influencing skills, focusing and shaping awareness, and engaging and motivating others |
Get the work done | 1.1-1.3, 2.1 | Takes responsibility for planning and organising own workload, identifying ways of sequencing and combining elements for greater efficiency Implements actions as per plan, making adjustments if necessary and addressing unexpected issues Understands importance of secure information and privacy in relation to own work and takes personal responsibility for identifying and managing risk factors Makes a range of critical and non-critical decisions in complex situations, taking a range of constraints into account |
Sectors
Management and Leadership – Small and Micro Business