As a small business owner, the last two things you need are…
- a dent in your finances, and
- a dent in your reputation
But both can happen if you find yourself trapped in a legal battle.
However, as we discussed in a previous article, there are ways you can avoid legal disputes. With careful planning and the right legal advice, you can preempt any trouble.
In this article, we are going to look at two specific legal risks that are common to most businesses and suggest ways to minimize them. Read them, heed them, and take the steps necessary to protect your business.
Legal Risk #1: Employment Tribunal Claims
Employment tribunals are independent bodies set up to resolve disputes between employers and employees. If you, as an employer, are found guilty of unfairly dismissing an employee, or discriminating against an employee because of gender, race, religion, and ability (as examples), you will have to pay compensation to the grieved employee. As suggested previously, this could damage your finances, as well as your reputation once word gets out in both the media and through word of mouth from the wronged employee.
Tip: To minimize risk, you need to put in place a Contract of Employment that is tailored to your business. With terms and conditions that stipulate what you expect of the employee and what they should expect of you, you can cover most eventualities to protect yourself and your employee from any legal disputes.
You should also take care not to discriminate against your employees. Treat each person fairly, and give them the same opportunities for overtime, promotion, etc. As an honest and decent employer, you then stand less chance of any discrimination claims coming your way.
Legal Risk #2: Fleet compliance and personal injury claims
When we talk about fleet compliance, we are referring to any vehicle your business puts on the road. This includes trucks, vans, and cars that are used for business purposes. It is your legal obligation to provide a duty of care to your employees, so to achieve fleet compliance, your vehicles need to be roadworthy and maintained on a regular basis. If not, and there is an accident on the road resulting in injury to either your employees or a member of the public, then inevitably, you will find yourself facing a personal injury claim.
Tip: As suggested, your priority is to ensure your business fleet is roadworthy. You should also consider fitting them out with safety technologies to alleviate the risk of an accident taking place. Your drivers should be assessed as to their driving abilities, and if need be, you should pay for them to attend advanced driving courses to improve their skills on the road. By taking these and other steps to be fleet compliant, you can include them in your policies to protect you from legal harm.
Of course, despite your best efforts, an accident can still take place. In some cases, your drivers may not be to blame, so install dash cams to give you the bigger picture, and acquire the services of a car or truck crash expert to both assess the situation, and to support your case should you have to go to court.
Finally
Legal battles are both costly and disruptive to your business. To avoid them, consider the suggestions we have presented in this article, and seek legal counsel early to ensure you stay on the right side of the law within your business. It’s a minefield, we know, but by taking steps to be legally compliant, you will protect both yourself and the people you work with from harm. And as a good employer, that should always be your priority, despite your busy schedule!
Be sure to hop into the Savvy Entrepreneur Private Facebook Community to collaborate, learn and grow with your fellow entrepreneurs and business owners.
Similar Posts by Savvy Entrepreneur:
10 Income Reports by Entrepreneurs for Entrepreneurs
https://savvyentrepreneur.co/10-income-reports-by-entrepreneurs-for-entrepreneurs/
Get More Customers Using Your Website, Email Marketing, and Social Media
https://savvyentrepreneur.co/get-more-customers-using-website-email-marketing-social-media/
Mastermind Groups for Entrepreneurs Foster Accountability
https://savvyentrepreneur.co/mastermind-groups-for-entrepreneurs-foster-accountability/
This is a Collaborative Post
