Nobody in small business looks forward to dealing with HR
issues; the regulations associated with HR issues seem tedious, dry, and
difficult to interpret. Unfortunately, mistakes where personnel are
concerned can quickly become costly matters, what with the growing
propensity of disgruntled employees to lodge court actions when they
believe they have been subjected to an unfair work practice. To
protect your business there are several areas you really must deal with,
and there are places you can go for free help and assistance.
Harassment
Harassment takes many forms,
from bullying to sexual overtures. Your business should have a strong
written policy on harassment and when incidents are reported you must take
immediate steps to enforce its provisions.
Discrimination
Discrimination occurs
whenever someone is treated differently because of their religion, race,
sexual preference or culture. It can take place as part of the recruitment
process by influencing who you select to interview and hire; by being used
as an excuse to terminate a person; by influencing evaluation for a
promotion; or by being brought into consideration when choosing who gets
to undertake a training course or represent the business at a trade show.
Treat all members of the team impartially and don’t allow others in the
business to practice discrimination.
The
hiring contract
Every person you appoint
should be provided with a written copy of their basic contract conditions.
They should sign two copies, one for their personal retention and one for
your files. This will ensure that both parties have a clear understanding
of the terms of the appointment - pay, duties, leave entitlement and other
relevant details, and have agreed to them.
Protecting the firm’s IP
Every business has
intellectual property of some kind. It could be patents or copyrights, or
just its customer database and pricing schedule. Everybody employed should
sign an agreement that states they will not disclose this intellectual
property to others, both during and after their employment with you, and
that on termination all documents related to IP or owned by the company
will be returned. Put it in as part of the hiring contract.
Contractor relationships
It can’t be assumed that
every person who seems to be in the position of ‘contractor’ to a
business, is for that reason necessarily excluded from entitlement to all
of the benefits that normally accrue to ‘real’ employees. This area of law
varies widely from one jurisdiction to another and it’s best to get expert
advice before taking on someone in a ‘contractor’ role just to be certain
of their legal position in relation to your business and your obligations
to them.
Invasion of privacy
If you’re going to monitor
team members’ communications, now a common practice in these days of email
and the Internet, be sure the way you do it can’t be seen as an invasion
of their privacy. State your policy in this regard as part of your hiring
agreement and don’t try to get away with anything that could be construed
as ‘snooping’.
Employment history records
You should document every
significant element of a team member’s relationship with your business
from the time of their appointment until the time they leave. If a person
is promoted (or not promoted) the reasons need to be recorded for future
reference. This includes recording things like disciplinary problems,
customer complaints, minutes of counseling meetings and violations of your
employment policy. It should also include any complaints they make
to you. But don’t just dwell on the negatives – you should be recording
the customer kudos and their other work related achievements as well.
So, while there's little you
can do to prevent the truly bogus lawsuit, you can reduce your risk of a
case arising in the first place, and improve your chances of winning a
court action, by documenting, distributing and enforcing strong policies
around these core issues. This will also keep you in compliance with labor
law in many instances also. And, just as important, you need to ensure
your employees understand the issues by providing short information
courses that explain why they are important and how breaches will be
treated. That way nobody can claim ignorance as a defense and it might
just work to deter any improper actions in the first place.
It needn’t be too difficult
to put together a set of ‘plain English’ polices covering these issues –
first stop should be the various government departments charged with
aspects of employment law. They often have educational materials like
brochures and workplace posters, offer training on important issues and
provide standard policy statements you can use in your own policy
manual.
In today's business climate
employees are much more likely to head for court if they believe that they
are being treated unfairly, so it makes good business sense to try to
avoid costly HR mistakes from arising in the first place. This is one area
where a little prevention is worth a lot of cure.