What Are The Four Common Legal Issues Faced By Businesses?

The risk of costly litigation should be one of your top priorities as an entrepreneur or business owner. Legal nuisances, especially in Canada, can take you by surprise and severely hurt your company’s bottom line. Four of the most commonplace legal issues facing all businesses today have been outlined below.

Wrongful Dismissal Suits: This is one of the most typical legal headaches for business owners. Employees in Canada have more rights than workers in developing countries, and there are many suits for “wrongful dismissal.” If you fire an employee that is performing poorly, ensure the terms of dismissal are abundantly clear and that he or she has signed all attorney-drafted papers in full. Letting someone go without any final termination forms leaves the door open for legal problems later.

Discrimination or Harassment Cases: The legal implications of alleged discrimination—age, sexual, ethnic or otherwise—can cause your company very serious problems. Make sure your HR and legal departments plan ahead so they can handle these issues if and when they arise. Make sure you keep records of all the applicants’ resumes during the hiring process, should allegations of discrimination come up. This will help you prove that you hire only the most qualified persons, regardless of gender, ethnicity or age. Victims of discrimination or harassment tend to draw media attention, which can hurt your business’s public image and drain your budget. Be hands-on and stamp out these problems before they start.

Sudden Immigration Audits: You must be diligent to ensure your organization’s employees can legally work in Canada. Do comprehensive sweeps off your company’s staff, utilizing background checks, to uncover illegal immigrants with forged documents. The Canadian government has been known to conduct extensive and unannounced immigration audits that can damage a business if it is found to be using illegal labour.

Unhappy and Dissatisfied Customers: Unhappy customers can file lawsuits against your organization, in which they gather in massive consumer groups and attack your business over faulty products or services. With too many dissatisfied customers, lawsuits can do more damage than any individual person and will irreparably smear your brand’s image. Be proactive and keep an eye on your customers through tech support, social media, online message boards and emails. Regularly issue recalls for flawed products and be quick to address customer complaints.

Final Thoughts

These are only a select few of the most typical legal issues facing businesses today. Other common problems include tax issues (a whole other topic) and legal disputes with other businesses or contractors. Be diligent in actively solving these problems before they get too big, and make sure you have a solid legal team to back you up.

Looking for sound legal advice for your organization, business or corporation? Contact Law Contractor today.

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