The last thing an entrepreneur thinks about when they launch a startup is a day in court. There is too much to worry about, from cutting costs to generating leads, to bother with lawsuits. And, therein lays the problem. Owners neglect their responsibilities and leave themselves wide open to legal action. It only takes one slip or a single fall for the company to find itself in the dock answering difficult questions.
The solution is obvious – cover the bases. However, the majority of entrepreneurs don’t realize they’re breaking the rules in the first place. To tell if you fall into this category, take a look at the questions underneath.
Do You Cross The Ts
Bosses often feel as if they have the right to fire an employee if they aren’t pulling their weight. You’re in charge so it’s your decision. But, it’s crucial to remember there are laws in place to protect workers from unfair discrimination. Therefore, employers must follow the letter of the law when terminating a contract. Otherwise, there is scope to sue for the individual. This means providing a verbal, a written and a final warning before pulling the trigger. Also, it’s essential to avoid being spiteful or anything which classes as bullying.
Are You 100% Professional?
The answer is always “of course I am!” because there isn’t a business person on the planet who thinks they are amateurish. Still, it’s the little things that can get a person in trouble even when they appear seemingly innocent. A joke about sexual innuendo is a prime example. In the wake of the MeToo movement, it’s apparent people in positions of power shouldn’t insinuate regardless of whether it’s lighthearted fun. There is a line which bosses can’t cross with their employees and getting too friendly is one of them as it might be misconstrued as something different.
Have You Heard Of The 50% Rule?
If you haven’t, it’s the rule courts use to determine who is at fault for a workplace injury. If the victim is less than 50% at fault, or if you are this amount or more, you’re to blame. There’s a good chance you already flout this rule if you don’t understand it exists. With this in mind, think about your health and safety practices and whether you’re doing enough to keep people safe. As well as signage, it’s vital that you report potential hazards and develop safeguarding policies. This goes for anyone who enters the building and not only employees.
Do You Have Insurance?
Or, do you have the correct policy in case something goes wrong? You might think you only need one, but https://www.entrepreneur.com/article/241026 says differently. According to this post, seven types are necessary to ensure you aren’t liable for lawsuits. And, that means you personally too. Severe negligence will impact your personal finances if you’re not structured properly, i.e. a corporation. Even if you have protection, be sure to update and upgrade your policies.
Are you liable? What do you plan on doing to transform the situation?
This is a collaborative post.