Is statutory the same as legal?

Is statutory the same as legal? Understanding the differences

Understanding the intricacies of legal and statutory requirements is crucial for any organisation in compliance. Both terms often surface in discussions about regulatory compliance, but they are not synonymous. Misunderstanding these concepts can lead to serious compliance issues. In this blog, Dr Richard Dune delves into the distinctions between legal and statutory requirements, offering insights into their significance and implementation in business practices.

Key facts and statistics

According to the Health and Safety Executive (HSE), 693,000 workers sustained non-fatal injuries in 2019/20, emphasising the need for robust statutory and legal compliance.
A study by PwC found that non-compliance with statutory and regulatory obligations costs companies an average of $9.4 million annually.
The Mandatory Training Group has noted a 40% increase in inquiries related to statutory compliance training over the past year.

Key definitions

Legal requirements - Refer to obligations enforced by law. These encompass a wide array of laws, such as criminal law, civil law, and administrative law, which must be adhered to by individuals and organisations. Legal compliance ensures that entities operate within the boundaries set by the government.
Statutory requirements - These are specific obligations imposed by statutes, which are formal written laws enacted by legislative bodies. For instance, the Health and Safety at Work Act 1974 is a statutory requirement that mandates employers to ensure the health and safety of their employees.

The differences between legal and statutory requirements

Source of authority

Legal requirements - Derived from a broader spectrum of laws, including common law and statutory law.
Statutory requirements - Specifically emanate from statutes passed by legislative bodies.

Scope

Legal requirements - Encompass all law forms, including statutory laws and other regulations, directives, and judicial precedents.
Statutory requirements - These are a subset of legal requirements, confined to those obligations directly specified in statutes.

Enforcement

Legal requirements - Enforced through various mechanisms, including courts and regulatory agencies.
Statutory requirements - Specifically enforced by agencies designated to oversee compliance with particular statutes.

Recommended best practices for implementation

Understanding the legislation

Training and education - Regularly update staff on the latest legal and statutory requirements through comprehensive training programmes.
Resources - Utilise resources like ComplyPlus™ to stay informed about relevant statutes and legal updates.

Compliance framework

Documentation - Maintain a central repository for all compliance documents, ensuring easy access and regular updates.
Policy templates - Develop and implement policies that reflect current statutory and legal requirements.

Monitoring and auditing

Regular audits - Conduct periodic audits to ensure compliance with both legal and statutory obligations.
Compliance tools - Leverage compliance management software like ComplyPlus™ to track and manage compliance efforts effectively.

Engaging experts

Legal consultation - Regularly consult with legal experts to ensure your understanding and implementation of laws are accurate.
Statutory guidance - Engage with statutory bodies and utilise their resources for guidance on specific statutory requirements.

Recommendations

Invest in training - Implement mandatory training sessions for all employees to understand legal and statutory requirements.
Adopt compliance software - Use tools like ComplyPlus™ to streamline the management of compliance documents and ensure up-to-date adherence to all relevant laws.
Regular updates - Stay informed about legislative changes through reliable sources and update your compliance strategies accordingly.

Conclusion

Understanding the difference between legal and statutory requirements is vital for effective compliance management. While all statutory requirements are legal, not all legal requirements are statutory. Clear comprehension and implementation of these obligations can protect organisations from hefty fines and enhance operational efficiency. By leveraging robust compliance management tools like ComplyPlus™, businesses can seamlessly meet all necessary legal and statutory requirements.

Ensure your organisation remains compliant with all relevant laws and statutes. Invest in ComplyPlus™ today for a comprehensive compliance management solution that keeps you ahead of regulatory changes. Click here to learn more about our training courses and compliance tools.

About the author

Dr Richard Dune

With over 20 years of experience, Richard blends a rich background in NHS, the private sector, academia, and research settings. His forte lies in clinical R&D, advancing healthcare tech, workforce development and governance. His leadership ensures regulatory compliance and innovation align seamlessly.