1.1 Describe legislative and regulatory requirements in relation to managing: • financial resources • human resources • physical resources

This guide will help you answer 1.1 Describe legislative and regulatory requirements in relation to managing: • financial resources • human resources • physical resources.

Legislative and Regulatory Requirements for Managing Financial Resources

Managing financial resources means making sure an organisation’s money is used properly and legally. There are several laws and regulations that must be followed in health and social care.

Main Requirements

Companies Act 2006
This law sets out rules for how financial records are kept and reported. All organisations must keep clear, accurate accounts. Financial statements must be prepared each year and checked for accuracy.

Charities Act 2011
If the organisation is a charity, this law requires careful management of funds. Charity money must only be used for the organisation’s approved aims. Trustees are responsible for making sure money is not wasted or misused.

Public Contracts Regulations 2015
This law covers how public money is spent on contracts and services. It says all purchasing must be fair, open, and good value for money.

Fraud Act 2006
This law makes it illegal to deceive, steal or misuse funds. Staff who handle money must not commit fraud or allow it to happen.

Audit Requirements
Organisations must often have their accounts checked by independent auditors. This helps make sure laws and procedures are followed.

How to Comply

• Keep accurate financial records and receipts
• Follow policies for purchasing, invoicing, and authorisations
• Carry out regular audits and reviews
• Train staff in anti-fraud measures

Breaking financial rules can result in legal action, fines, loss of funding, and damage to reputation.

Legislative and Regulatory Requirements for Managing Human Resources

Human resources refers to all the people employed by the organisation. Laws and regulations protect staff and set out how they must be managed.

Main Requirements

Employment Rights Act 1996
This law gives rights to workers, such as legal contracts, fair pay, and protection from unfair dismissal.

Equality Act 2010
This bans discrimination on the grounds of age, disability, gender reassignment, marriage or civil partnership, pregnancy, race, religion, sex, or sexual orientation. All recruitment, promotion, and training decisions must be fair.

Health and Safety at Work Act 1974
Employers must protect the health, safety, and welfare of staff. This includes safe working conditions, risk assessments, and proper training.

Working Time Regulations 1998
These rules limit how many hours staff can work and set requirements for breaks, holidays, and minimum rest periods.

Immigration, Asylum and Nationality Act 2006
Employers must check that all staff have the legal right to work in the UK.

Disclosure and Barring Service (DBS) Checks
Staff who work with vulnerable adults or children must have criminal record checks before starting work.

How to Comply

• Use fair recruitment policies and clear job descriptions
• Provide written contracts and pay correct wages
• Offer training and supervision
• Monitor working hours and breaks
• Complete risk assessments and follow health and safety procedures
• Carry out necessary DBS checks before employment

Fines and prosecution can result from ignoring these requirements. It can also put vulnerable people at risk and damage trust.

Legislative and Regulatory Requirements for Managing Physical Resources

Physical resources are the buildings, equipment, vehicles, materials, and spaces used in health and social care settings. There are laws to make sure they are safe and fit for purpose.

Main Requirements

Health and Safety at Work Act 1974
This law applies to the physical workplace. Buildings and equipment must be safe to use. Risks must be identified and controlled.

Workplace (Health, Safety and Welfare) Regulations 1992
These rules cover lighting, heating, ventilation, cleanliness, water supply, and toilet facilities. All must be maintained to suitable standards.

Lifting Operations and Lifting Equipment Regulations (LOLER) 1998
Any lifting equipment, such as hoists and slings, must be inspected regularly and maintained in safe working condition.

Provision and Use of Work Equipment Regulations (PUWER) 1998
All equipment provided must be fit for use, safely maintained, and used by trained staff.

Control of Substances Hazardous to Health (COSHH) Regulations 2002
Chemicals, cleaning products, and medical substances must be stored, handled, and disposed of safely.

Fire Safety Order 2005
Organisations must complete fire risk assessments and provide alarms, extinguishers, safe exits, and staff training.

Data Protection Act 2018
Any physical records—including paper files—must be stored securely to protect confidentiality.

How to Comply

• Carry out regular safety checks and maintenance
• Complete risk assessments for buildings, equipment and materials
• Train staff to use equipment correctly
• Store dangerous substances safely and keep records of use
• Put emergency plans in place, such as fire drills
• Securely store physical records to guard against theft or loss

Failing to meet requirements can lead to prosecution, accidents, injury, and loss of registration with the Care Quality Commission (CQC).

Resource Type	Key Legislation and Regulations	Main Requirements
Financial	Companies Act, Charities Act, Audit Rules, Fraud Act	Record keeping, anti-fraud, audits
Human	Employment Rights Act, Equality Act, Health and Safety, DBS	Fair recruitment, contracts, safety, checks
Physical	Health and Safety, LOLER, PUWER, COSHH, Fire Safety, Data Protection	Maintenance, assessments, safe use

Final Thoughts

Legislative and regulatory requirements are in place to protect people, money, and resources in health and social care. Managers and staff all play a role in making sure these rules are followed. Good practice in managing resources supports safety, quality, trust, and legal compliance across the sector.