Running a rental or leasing business means meeting workplace health and safety duties that every employer shares, then layering on the sector-specific rules for your activity: FCA authorisation for regulated consumer hire, compulsory motor insurance and roadworthiness for vehicle hire, work equipment safety duties for plant and machinery hire, and consumer protection obligations when you hire goods to the public.

Health and safety is enforced by the Health and Safety Executive (HSE) in Great Britain and the Health and Safety Executive for Northern Ireland (HSENI) in Northern Ireland. The FCA regulates consumer hire UK-wide. Motor insurance is a Great Britain regime with an equivalent duty in Northern Ireland under the Road Traffic (Northern Ireland) Order 1981. Consumer protection law applies UK-wide.

Health and Safety at Work etc. Act 1974 (HASAWA)

The Health and Safety at Work etc. Act 1974 - primary UK workplace health and safety legislation establishing employer and employee duties. Pure data reference.

The Health and Safety at Work etc. Act 1974 (HASAWA 1974) is the primary legislation governing workplace health and safety in the United Kingdom. It establishes the legal framework for protecting the health, safety and welfare of people at work and those affected by work activities.

Legal status: Primary legislation - principal UK health and safety statute
Royal Assent: 31 July 1974
Came into force: 1 April 1975 (in stages)
Geographic scope: Great Britain (separate legislation applies in Northern Ireland)
Applies to: All employers, employees, self-employed persons, and those who control work premises
Primary duty (Section 2): Employers must ensure, so far as is reasonably practicable, the health, safety and welfare at work of all employees
Duty to non-employees (Section 3): Employers must protect persons not in their employment (contractors, visitors, public) who may be affected by work activities
Employee duties (Sections 7-8): Employees must take reasonable care for their own health and safety and that of others, cooperate with employers, and not misuse safety equipment
Enforcement authority: Health and Safety Executive (HSE) and local authorities
Maximum penalties (post-2008 amendments): Unlimited fines in Crown Court; imprisonment up to 2 years for individuals; up to 6 months and/or £20,000 fine in Magistrates' Court
Referenced by regulators: Cited in 31 regulatory documents in the ORDS (Office for Regulatory Delivery and Simplification) dataset
Secondary regulations: Enables creation of health and safety regulations (e.g. Management of Health and Safety at Work Regulations 1999, COSHH, Manual Handling)

Reasonably practicable: The Act uses the term "so far as is reasonably practicable" throughout. This means employers must balance the level of risk against the time, trouble and cost of controlling it. However, the law is weighted in favour of health and safety - employers must demonstrate that control measures would be grossly disproportionate to the risk before they can be considered not reasonably practicable.

Self-employed persons: The Act also places duties on self-employed persons to protect their own health and safety and that of others who may be affected by their work activities.

Health and Safety at Work etc. Act 1974 (legislation.gov.uk)

HSE - Health and Safety at Work etc. Act 1974 guidance

What you need to do

Identify the description that best fits your business, then follow the guides in order.

1

Every rental or leasing business

Start with the universal workplace duties. Follow "Set up and run a safe rental or leasing business" for your health and safety, fire safety, employers' liability insurance, equality and data protection obligations.
2

You hire goods to consumers, rent out vehicles, hire out plant or machinery, or need to meet consumer protection duties

You may need FCA authorisation for consumer hire agreements over 3 months, must insure every hired vehicle, owe PUWER and LOLER duties on hired plant, and must meet consumer rights and unfair trading rules. Follow "Meet your rental and leasing regulatory duties".
3

Confirm you have covered everything

Work through the rental and leasing compliance checklist to confirm your obligations are met.

Official sources

Authoritative starting points for rental and leasing businesses.

Which rental and leasing regulations apply to your business

Rental and leasing compliance checklist

Fire safety duties for Northern Ireland businesses

Fire safety duties for Scottish businesses

Set up a limited company

Persons with Significant Control (PSC) register requirements

What you need to do

Every rental or leasing business

You hire goods to consumers, rent out vehicles, hire out plant or machinery, or need to meet consumer protection duties

Confirm you have covered everything

Official sources

Related guides in Compliance & Legal

What you need to do

Every rental or leasing business

You hire goods to consumers, rent out vehicles, hire out plant or machinery, or need to meet consumer protection duties

Confirm you have covered everything

Official sources