Laws, a former Burnley defender, managed Championship side Sheffield Wednesday before being axed in December.
He faces a baptism of fire, with Burnley playing champions Manchester United at Old Trafford in the Premier League on Saturday with a visit to Bolton looming on January 26.
"We all know that Burnley are not going to be matching a lot of the teams in the Premiership, the likes of Manchester United, we know that," he said.
"But what we will have is prudence and we will make sure we do our work diligently. We'll get players in at the right price and the right time and hopefully (that will) keep us in the Premiership.
"That's the most important thing and we believe we will do that."
"He stands out, he works very well and understands the ethos of this club. Being an ex-player he has an affection for us as well. Being the size we are we have to work within our budget, so its an exact fit."
"The results of a Deloitte and Touche study, delivered at the club's request, confirm that he was top of the list of Championship managers over the period 2006-2009, in terms of delivering the best results relative to financial budgets."
Burnley said Laws' arrival would enable the club to build on the foundations laid by Coyle in taking them back to the top flight.
