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3 Steps to Stopping Employee Lawsuits Before They Cripple The Firm

March 15, 2017 by Christopher

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People love to wax lyrical about the advantages of starting a business.

They will tell you how there is no better thrill than making money on your watch and for no one else. They will say how good it is to look at a company grow and go from strength to strength.

They might even say how easy it is – ‘all I did was get a loan!’ Apparently, people say a lot of things, but it’s what they omit which is important.

One thing they never divulge is how many lawsuits they have to deal with on a yearly basis. Employees love to take their employers to court if they have grounds, and it’s incredibly damaging for the company.

If you want to start a business but don’t want mountains of lawsuits, here are the steps to take.

 

#1 Do It By The Book

Source

Unlawful dismissal is one of the biggest civil suits on the planet because the law is complicated.

And, because it’s complicated, employers like to take the gamble so as not to deal with all the monotonous detail.

The risk businesses take when they do this is huge. In a court of law, you are the one that must prove no negligence occurred on your part, even if you didn’t file the suit.

For that reason, it’s imperative to do everything by the book. That means giving them a verbal and written warning, a final warning, and then firing them as anything else will result in damages to the plaintiff.

And, if one employee knocks it out of the park, it sets a precedent for more to set up to the plate.

 

#2 Take Health & Safety Seriously

Health and safety in the workplace is the law, which means it’s illegal to neglect the health and safety of your workforce.

Although most employers don’t ignore it, they don’t take it too seriously. In fact, some just cover the basics so they can say they did all they could to make the office a secure place to work.

The basics are not enough as they don’t cover all the bases. It’s important to think about everything from maintained emergency lighting to electrical testing to ensure there are no grounds for a suit.

Only when the employees are completely safe can you be safe, too.

 

#3 Be Extra Kind

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There is a chance that something can go wrong even when you do everything possible to prevent an accident.

When that happens, the business is still in trouble because the law is on the side of the employee. So, it’s important to stop the suit at the source.

Please don’t take this to mean you should harass or bully them into dropping the case because that’s wrong. The best way to stop the suit is to get them on your side.

A business that treats their employees extra fairly will get more leeway when an incident occurs they won’t want to press charges.

Lots of workers do it because they have no connection to their workplace, and some do it because they want to get their own back. If they like their job and their employer, there is less chance of these feelings bubbling to the surface.

So are you dealing with tough employees?  

I feel is you follow the steps above you’ll be much more likely to come out ahead and be a win/win for both of you.

Cheers!

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Filed Under: Business Tips

About Christopher

Chris is a personal finance blogger with Stumble Forward helping people avoid life's financial mistakes and live a higher quality financial life.

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Get To Know Me

Hi, my name is Chris! I’m a personal finance and small business nerd.  Check out my blog where I share all of my favorite tips about saving money to running a small business.

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