A lawsuit brought by an employee could take up a considerable amount of your time as a business owner. If you lose, it could tear through your profits for the year. Yet, even if you win, it could still do irreparable harm to your company.
Other employees may take the employee’s side or former employee bringing the case, reducing workplace morale. Customers may also consider it a bad sign, perhaps deciding your values do not meet theirs and changing to a different provider.
If you face a lawsuit, you will need legal help to fight it. Yet, if you get legal help now to check that everything is in order, you may be able to prevent one from ever happening.
What preventative measures can you take as an employer?
Keeping your employees happy is not always as easy as it sounds, yet it is a goal worth trying to achieve. Aside from being more productive, content employees are less likely to take you to court. Here are some more measurable goals you can reach for:
- Set clear expectations: If you do not make these clear, workers may think they are performing to acceptable standards when you do not.
- Established clear disciplinary procedures: Terminations can often lead to legal disputes. If your warning system is clear, it backs you up when you need to explain why you are letting someone go.
- Work on eliminating discrimination: Assuming no one will harass or discriminate against anyone else is not good enough. You need to set out your policies, display them and reinforce them through training and action when needed.
- Create clear complaints procedures: Workers need to know where to report issues, and you need to handle all reports with seriousness.
When you become an employer, you take on far more responsibilities than merely turning a profit. Complying with all employment laws and ensuring your workers have a safe environment to work in will be crucial to minimizing the risk of litigation.