How Companies Can Avoid Lawsuits

No matter who you are or what you do, nobody is exempt from being in an accident. For instance, you might be walking down the street when suddenly a drunk driver falls asleep at the wheel and hits you with his van or pickup truck. In such cases, the best thing to do is to hire the services of a large vehicle or semi-truck accident attorney. A reputable one will not only give you a rundown of your rights as a victim but also guide you on the best possible course of action to take.

This simple example illustrates the nature of most incidents, namely that they are the result of negligence and improper behavior. The driver could have decided not to drink that day. And if he wanted to, he could have asked somebody else to drive for him.

Had this happened, you wouldn’t have been hit, and he wouldn’t be involved in a costly lawsuit which will probably result in him ending up in jail.

From a business standpoint, civil cases brought forth by dissatisfied employees account for millions of dollars. As a result, companies must put adequate measures in place so that accidents don’t happen.

With that in mind, let us look at two examples of best business practices enterprises can engage in to avoid internal lawsuits by staff.

Proper Equipment Maintenance

According to the International Labor Organization, close to two and a half million people die every year because of work-related accidents and diseases. It represents an astonishing six thousand deaths daily.

Of course, some of these tragedies are unavoidable. An elderly employee might suffer a heart attack and collapse in the middle of his shift. A young worker could have an undisclosed illness whose symptoms are triggered by the conditions of a specific work environment.

Even so, such cases represent a small minority. Most work accidents fall into one of two categories: carelessness and bad equipment maintenance.


In a factory, carelessness is a plant manager not knowing what people are responsible for what machines in what schedules. Another example could be employees that have not been trained as it pertains to machine usage and adequate protective equipment.

As for bad equipment maintenance, it entails companies trying to extend the natural life of a machine or piece of equipment. In these instances, there is a clear disregard for recommendations found in product manuals and other literature.

If a machine is meant to be used for one year, don’t use it for two. If certain components need to be replaced after one thousand cycles, don’t extend them to one thousand five hundred. The amount of money you think you are saving will most likely come back to bite you in the behind in the shape of a civil case lawsuit from an injured worker.

Clear Contractual Agreements

There are several types of contracts a company can offer its staff. Among others, employees can work full-time, part-time, or freelance. The important thing is not how many contracts you offer. Firms have various requirements, and hence, different people are needed at different times.

What is important is that all workers are clear on what the contract says, and there is no room for personal judgment. For instance, let us imagine your company is a language school and hires foreigners to teach different languages. While some companies might cover the cost of temporary work permits, others might not do so. Instead, it is the employee who must pay for his visa.

What you decide to do depends on you. Still, if the contract stipulates that an employee’s work visa is covered by the organization, don’t then change your mind and have your employees cover the cost. This is not only illegal but also immoral.

Another issue many firms deal with is overtime work hours. To avoid legal problems that can cost your organization a lot of money, make sure you know the intricacies of labor law in your state or region. In some areas, overtime work starts at a certain time, for example, 9 pm. In others, it is a different situation.

When running a business, the last thing you want is to spend unnecessary amounts of dollars on employee lawsuits. Even if your business can cover this financial burden, it is certainly something that won’t help your enterprise grow. Furthermore, it could sometimes become a public relations disaster that can hurt the company indefinitely.

To avoid this, make sure all equipment and machinery used by employees are in tip-top condition and contracts are clear. Doing so will avoid more than a few legal headaches in the future.

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