8 tips for legal issues in a small business

The following are some practical tips for businesses on how to avoid or deal with a legal dispute:

  1. Understand your obligations and rights under the law.
  2. Seek legal advice before you enter into any business agreement or sign any contract.
  3. Seek legal advice before you implement any new policies, procedures or systems that will
    affect employees’ employment conditions or terms of employment (including new employment
    contracts).
  4. Keep records of all meetings, telephone calls and other communications with employees,
    including those on social media platforms such as Facebook or Twitter. When recording
    meetings and telephone calls with employees use an appropriate method (such as a video
    recording device) so that the employee is aware that their words are being recorded.
  5. Follow up any oral or written warnings issued by management to an employee for poor
    performance or misconduct with a formal letter setting out the reasons why the warning has
    been issued and what improvement is required from the employee if they are to remain
    employed by you in your business. Make sure that you have received acknowledgement from
    the employee that they have received this letter and understand its contents before taking further
    action against them (such as dismissal).
  6. Make sure that you have an up-to-date employment contract in place with each of your
    employees and that they understand what is expected of them in terms of performance and
    conduct.
  7. If you have received a complaint from an employee about another employee’s behaviour, it
    is important that you investigate this thoroughly before taking any action against the employee
    being complained about.
  8. Consider whether it would be better to resolve issues with employees informally rather than
    resorting immediately to disciplinary action.