Due to aggressive competition, businesses & companies are developing new products & services to gain more market share. They try to cut competition in the best possible ways. They are becoming more brand image-conscious and applying different promotional techniques. But there are several seemingly uncontrollable variables that contribute to brand image & equity.
One of the most important factors or variables affecting the image and customer loyalty of the company is employee lawsuits. If the company’s image is not good internally, how will the company maintain its reputation externally to different stakeholders?
An employee lawsuit means filing a case by an individual employee or a group of employees against the employer or company due to different relevant issues arising in the company. Once such employees leave the company, they spread rumors and the company’s internal matters. This heavily hampers the company’s progress and image.
The major reasons why employee(s) file case against employer or company are:
- Improper or no reasoning of firing or terminating the employee
- No appreciation for extra work or firing employees terming ‘bad performance’ even after actual delivery of good performance.
- Ignoring selective employees purposely for crucial decisions.
- Different forms of inequality which are found at the workplace before the lawsuit, either reported or not reported.
8 Tips to Lower Risks of Employee Lawsuits
Businesses can employ several ways to avoid any cases of employee lawsuits. These ways are shown hereunder.
Be prepared for the worst-case scenario
Management must be active in solving even the slightest issue of the employers. They must assume that even a small mistake from the company/employer or misconception can lead to a lawsuit. This assumption will help the employer be very cautious and attentive to the employee queries and problems.
Providing Complete Employee Guide or Handbook
Businesses must follow a rule of giving a handbook to employees that describe the whole working policies, terms, salary system, expectations, bonus, and other relevant policies. Providing this handbook will clarify the employees on certain grounds that will lead to ill-consequences like lawsuits.
Employers must look to minimize misunderstandings as much as possible. Moreover, employers must create this handbook keeping in mind the framework designed by the Employment Act. Even battery businesses and several other small-scale businesses like beny electric have adopted this technique.
Knowledge About Employment Laws
Big businesses must know various employment laws. It will give management more clarity about the treatment of employees on several grounds. Both the employees and employers must have enough information about their duties and obligations. These obligations include not only workplace-related ethics but also moral obligations.
Application of Progressive Discipline System
Many employees and employers get involved in wrongfully filing a lawsuit against each other. It is advisable for the companies to draft a system of progressive discipline. It means a system that defines different common problems employees face and the solutions to the same.
However, these problems and solutions might vary depending on the situations & circumstances. Employers must provide this system to the employees initially. This system must not be rigid.
Motivation & Morale Boosting
It is true that not every successful thing requires money. To reduce the cases of employee lawsuits, you must ensure that your employees are satisfied and happy with the working conditions & payscale.
On the one hand, the pay scale can be changed. But a major thing in keeping employees happy is boosting them through non-monetary motivational incentives. You must involve them in decision making, employee appreciation, recognition, promotional techniques, or have informal communication.
Avoiding Employee Discrimination Through training
Training and gaining feedback are the best things to promote transparency in an organization. Many legal cases filed by employers are caused by employee harassment or discrimination. To reduce the number of employee lawsuits, employers must conduct regular training sessions with the employees to interact with them. Employers must know what problems or discrimination they face (if any), how often, on what scale, etc. The discriminatory issues must not be overlooked or ignored.
Jot Down Employee Interactions in Written
To have the cleanest employee record, employers must note down everything written. They should take note of every single interaction session with the employee. You should try this practice for employees you think are prone to file a lawsuit. This is done frequently in small-scale volatile businesses or by a security tape supplier dealing in low demand goods.
Employee Recruitment & Selection
To ensure a decent working environment without any chance of employee lawsuit, start from the grassroots level. Employers must hire people after interviewing them regarding the candidate’s background, the reason for leaving the previous job (if any), asking for references, etc. This will help choose the best potential candidate.
Be it a valve manufacturer in China or a manager of a big company, everyone faces the uncertainty and risks of employee lawsuits. The above tips will be helpful in fighting most circumstances.