Making decisions within a company without a basic understanding of the law is not just a theoretical risk: it is a real, day-to-day risk. The regulatory environment in which executives and managers operate today is more complex than it was ten years ago. There is more labour regulation, more digital obligations and more personal responsibility. A manager who signs contracts without knowing what to look out for, who handles sick leave without knowing the procedures, or who processes data without understanding the GDPR, is making decisions with a margin for error that could be avoided with basic training. It’s not about becoming a lawyer: It’s about knowing when there’s a risk and what questions to ask.
Why a manager needs a basic understanding of the law in 2026
The Labour regulation has intensified in recent years: new grounds for dismissal, extended paid leave, mandatory recording of working hours, harassment protocols, equality plans. Digital legislation has added another layer: the GDPR, the AI Act and the Digital Services Act. And commercial law remains the framework for any relationship with customers, suppliers or partners.
The real cost of making decisions without a legal basis
A disciplinary dismissal carried out incorrectly can cost between 20 and 45 days’ pay for each year worked, even if the grounds are legitimate. A contract with a supplier that lacks a termination clause can tie the company down for years. A data breach without a response protocol can lead to penalties and civil liability. In all these cases, the manager who made the decision without consulting others bears a responsibility that could have been avoided or at least mitigated.
Basic employment law: what every manager needs to know about their team
A manager does not need to know the Workers’ Statute off by heart. They need to know which decisions regarding their team have legal implications and which require coordination with HR or legal advice before being implemented.
The essentials without the technical jargon
There are three main types of contract: permanent, fixed-term with just cause, and fixed-term seasonal contracts. The grounds for disciplinary dismissal are strictly defined: not every breach of duty constitutes grounds for dismissal, and implementing them without following the correct procedure renders the dismissal unfair, even if the grounds are valid. The scope of paid leave has been extended for 2025–2026, particularly leave following the death of a first-degree relative, which is now 10 days. Working time records have been compulsory for all employees since 2019: as a manager, you are jointly responsible for ensuring this works properly. And any substantial change to working conditions (working hours, duties, pay) requires a specific procedure, not just a verbal instruction.
Commercial contracts: how to review a contract before signing it
Signing a contract without reading it carefully is one of the most common and costly mistakes in business management. You don’t need to be a lawyer to spot the critical points: You need to know what to look for.
Civil and criminal liability of company directors: when you are held liable
Corporate liability does not always rest solely with the company as a legal entity. In certain circumstances, a director or manager is personally liable with their own assets.
When is the company liable, and when is the director liable?
The company is liable for damage caused by its employees in the course of their duties, for breaches of contract and for administrative offences. A director is personally liable where there has been wilful misconduct or gross negligence in their actions, where they have directly breached the law or the company’s articles of association, or where they have taken decisions that benefit their personal interests to the detriment of the company. In relation to health and safety at work, a manager who was aware of, or ought to have been aware of, a risk and failed to act may face criminal liability in the event of an accident. In cases of fraud or wilful non-compliance with regulations, liability may also be criminal. The difference between a questionable business decision and a personal offence often lies in the documentation and whether prior consultation took place.
Data protection and intellectual property: the basics you can’t afford to ignore
The GDPR is not just a matter for the IT department or the DPO. Any manager who decides what data to collect, how to use it or with whom to share it is making decisions with direct legal implications.
When does the GDPR apply to day-to-day decisions?
Creating a database of leads, sending out a newsletter, recording a video conference meeting, using a customer’s data for a purpose other than the original one: these are all decisions with implications under the GDPR. Intellectual property is equally important: code developed by a freelancer does not automatically belong to the company that commissioned it unless the contract expressly states otherwise. Training materials, sales presentations and designs produced by third parties have authorship and terms of use that must be verified. Protecting the company’s intellectual property and respecting that of third parties does not require a permanent lawyer: it requires sound judgement and well-drafted contracts.
When to consult a solicitor and how to get the most out of them by preparing in advance
Basic legal training is no substitute for a solicitor. What this does is improve the quality of the consultation: a manager who arrives having read through the contract, highlighted any questionable clauses and prepared specific questions receives more accurate advice in less time and at a lower cost.
There are situations that invariably require a solicitor: disciplinary dismissals, the negotiation of complex contracts, any dispute with an employee, managing a data breach, and corporate transactions. There are others that a manager can handle at their own discretion if they have the right training: reviewing a standard NDA, identifying unfair terms in a supplier contract, understanding which paid leave entitlements apply in a specific situation. The Educa.Pro catalogue offers access to training in business law and regulatory compliance specifically aimed at executives and managers, with a practical approach that translates legal knowledge into real decision-making ability.
A basic understanding of the law does not make a manager a lawyer. It makes them a manager who knows when there is a risk, what questions to ask and when they need help. That difference has a measurable value in every decision they make.
