Legal suits are expensive. These are time-consuming as they drag on for years. While running a business it is all the more dangerous to face legal issues. Get more info here on the commonly faced legal issues which cripple the growth of business:
- Employee issues: Litigations raised by employees normally relate to situations where employees are removed from their jobs. Sometimes when they are not satisfied with disciplinary action taken against colleagues, the employees resort to strike. Also, when employees feel compensation is not adequate, they are dissatisfied. Such employees turn out to be a potential source of litigations. Planning recruitment properly will avoid retrenchments. The packages must be pre-defined clearly. It should match the financial situation of the business. Any confusion of mishandling of the above points can lead to legal issues. Ensure a good HR policy. Educate the employees about the terms and conditions of their employment.
- Discrimination: When career advancements are not backed by gender equality there is a high chance of facing litigation. In most businesses, people from all nations and cultures work as a team. Denying rights and privileges based on religion or race will be dangerous. Litigations based on such issues hamper the public image of your business. Have a code which every employee should follow without fail to avoid discrimination-related issues.
- 3. Statutory audits: Depending on where your business is located you have a set of laws to adhere. When the government checks to find whether everything is fine, your business must be able to prove it. Government litigations would invite more trouble. These might result in freezing your finances and operations until the case is over. Follow correct immigration rules while hiring employees from offshore. Never compromise on quality. Ensure the safety of employees and customers. Have proper norms for safe waste disposal. Besides all the above points keep your records clear and clean. Pay all the taxes correctly. Store the documents related to tax and accounting properly.
- Copyrights: Ensure that your business process, innovations and ideas are patented properly. This will help in avoiding fake claims from rivals. Also, copyrights and patents would bring you long term benefits and protection.
- Customer issues: Customer is the king of your business. Ultimately what you want is win customers. When the product or service quality is poor firms face customer litigations. Hence do not compromise on quality. Also never commit what you know well that you will not be able to honor.