When it comes to things that a business needs to be aware of, workplace disputes come in at the top of most pitfalls that a business should always look out for. Why? Because even a simple dispute, if not resolved properly and amicably, can leave a business vulnerable and open to litigation, which can potentially drain away at the time and resources that a business has. Instead of focussing on moving forward, businesses can get swamped down by litigation and other dispute-related matters that could have been dealt with amicably and without it costing the business valuable time and resources.
In this blog post, we will look at how businesses in Toronto can avoid legal pitfalls in workplace disputes. The first step and priority for a business should always be dispute resolution, and that too amicably; and if a dispute is between two employees, it should focus on dispute mediation before things go south and matters are delegated to litigation. So, here are some steps that Toronto businesses can take to avoid legal pitfalls in workplace disputes, and to ensure that no disagreement or issue is aggravated to the point of litigation.
Let’s get started on avoiding legal pitfalls in workplace disputes.
Avoiding Legal Pitfalls in Workplace Disputes
Safeguarding your business from potential legal challenges requires you to understand what is at stake when it comes to resolving or partaking in a workplace dispute. These steps can certainly help you provide a safe space for your business to grow and thrive, without the concerns that potential litigation might have for the success of your business.
Clear, Concise Dispute Resolution Agreements
Starting a business comes with its own set of issues and problems that founders need to deal with. One of those is funding issues, which, understandably, all businesses need to go through. This can push a lot of founders towards skipping due diligence, including skimping out on partnership and other defining agreements that could help with dispute resolution down the road. However, the first tip in ensuring that your business stays ahead and does not get entangled with disputes down the road is to focus on such agreements beforehand. Inclusions like pre-dispute resolution clauses can allow all parties to settle on an agreement without having to resort to the much-maligned litigation process, which not only sidetracks the process but also has a negative impact on the business.
Understanding Litigation Risks
Each business type carries with itself a certain level of risk for litigation. For example, the banking sector is very heavily regulated, and carries the almost inherent risk of litigation or dispute when it comes to money talk between parties. And oftentimes, the amount becomes the main point of contention between said parties. Some industries, like retail, do not have the same propensity for attracting lawsuits or disputes as the banking industry does, so understanding what inherent litigation risks your particular field of business carries is always important, and can help you prepare beforehand with the requisite risk mitigation techniques for your business, be it getting an excellent team of lawyers on board, or having agreements and regulations drawn up beforehand.
Crisis Response Plan
So many businesses struggle with a crisis that it is always possible to single out which businesses had a crisis response plan drawn up beforehand, and which businesses were caught in the headlights. Many lawyers and top executives will swear by having an exemplary crisis response plan, even in situations which may not seem like anything considerable at first. This is because such events have the tendency to snowball out of control, and may end up going towards the litigation step, upon which a real emergency can actually start. This is why, having a crisis response beforehand makes all the difference in the world; especially in your business having a broad plan ready to react to the crisis, including investigation, preservation of privilege, data and documents, and to ensure that the crisis itself is resolved amicably and as quickly as possible, with the least amount of ramifications affecting the overall business itself.
Protecting Confidentiality
Confidentiality isn’t about hiding relevant data from the world; it’s about prioritizing which data can be made public, which data the employees can access, and which data is best left for the management or the executives. As such, protecting confidential data should be prioritized, and it should also be determined by comprehensive policymaking or rulemaking how this data will be protected. Failure to protect the information can lead to a loss of proprietary protection for information at the cost of tens of thousands of dollars in litigation expenses. Therefore, to save your business the trouble of not having protected sensitive data for the customers, or to save from the potential litigation that may come due to mishandling or exposure of data, it is important to prioritise which data needs to be protected, how it should be protected and what personnel or employees are allowed to access it.
Airtight Contracts
The legal world and fraternity appreciates comprehensiveness and conciseness. The more pithy your statements and overall communication is, the more it is understood across the board. As such, drawing up airtight contracts and agreements that leave absolutely no space for any sort of misunderstanding or potential for misinterpretation of the intentions is absolutely crucial. Because without them, once again, you will be opening up your business to potential litigation, all because due diligence wasn’t done when it was time to draw the contracts or agreements, and now the business is vulnerable to a potential lawsuit or litigation effort due to said loophole being exploited. A good team of lawyers can draw up what are known as airtight contracts, therefore, have one do it for your business.
Excellent Legal Counsel
Last but not least, every business can benefit from excellent legal counsel. Whether you are a big bank, a multinational company, or a small business, excellent legal counsel is crucial for your business journey to the top. From drawing up contracts and agreements to representing your company or business in the public sphere, having excellent legal help can make the difference between your business thriving and succeeding, or getting tangled in litigation and lawsuits that may very well threaten its existence.
Dharsi Law: Bonafide Employment Lawyers in Toronto!
When it comes to employment law, you’re better off not taking any risk at all, especially when it comes to litigation. Dharsi Law tops our list of the best employment lawyers in Toronto. It should come as no surprise that Dharsi Law has been ranked as the top employment lawyer; their services, track record, and insistence on nothing but excellence should guarantee that. Firstly, they provide comprehensive legal services for all matters related to employment law; contract disputes, contract law advice, and workplace discrimination claims are their specialities, and their track record for these claims is simply indisputable. All in all, Dharsi Law promises a worry-free approach to litigation.
