Legal implications are the results or consequences of being involved in something according to the law.
A good example is the case of marriage. As a consequence of being married, all property is considered co-owned as long as you acquired after you got married. A legal implication can either be positive or negative. If you are caught driving when drunk, the legal implication is negative. The implication is considered negative because it works against your favor.
However, if your employer discriminates against you on the basis of your race or gender, then the legal implication is considered positive. If you decide to sue you employer, then the case will work in your favor as long as you prove you claims.
It is so unfortunate that legal implications are ignored in everyday life. The sad thing is that they still affect people in both positive and negative ways. In the case of a business, startups or established business ignore or are not aware of the legal implications as a result of running a business.
There are five legal issues that businesses around the world face.
Disagreement with Employees
Your employees have rights whether or not they are aware of them. Trade unions and institutions that deal with workers ensure that the rights are followed. When firing an employee, make sure you terminate him or her with a termination letter drafted and signed by a lawyer. Make sure that the letter has the reason for termination.
If you fail to do this, your employee can sue you. As an employer, it is your duty to give termination letter to employees when you fire them. That is a legal implication.
Disagreements can also arise when the employee faces harassment or discrimination while at your company. Whether you are the one harassing and discriminating your employee, the results can bring down your company. Discrimination is prevalent during the hiring process.
To avoid such cases, your legal and human resource department should maintain copies of the applicants’ resumes. The copies can be used to prove that you hired based on qualification. Lower and middle level managers contribute to discriminatory behaviors in the organization. To deal with such behavior, hold regular meeting with your employees to oversee co-worker relations.
Intellectual Properties
Companies have copyright, trademarks, trade secrets, service marks, and patent rights for new product development.
Before you develop a new product, your research and development team should confirm that no one has patented the product. When you develop a new product, protect it with intellectual property rights.
Dissatisfied Customers
Customers have a right to the right product and correct information. Complaints filed over bad service, unfulfilled promises or faulty products can cost your company a lot in term of legal costs. When many dissatisfied customers express themselves, they can come together in a class action lawsuit.
The lawsuit is likely to tarnish the name of your company which will make it lose credibility among people. To avoid this, make sure that all customer issues are attended to. Besides, do not fear calling bad faulty products and when the service offered is not right, make sure you rectify it.
Company Structure
The terms of agreement in any form of business should be laid out. Partnership and shareholders agreements should include all the important information. Contact a lawyer to draft the document for you.
Include information about sharing profit and loss, what happens when one partner or shareholder wants to leave and such information. As part of the company structure, consider the company and domain name to use. The name should be free from legal issues.
Tax Issues
The government has a right over tax and every business needs to pay taxes. For that reason, ensure that you submit all your tax returns. Besides, take note of all taxes and pay them accordingly.
