The Three Most Common Employment Law Mistakes Made by Small Businesses

Written by on November 20, 2009 in Published Articles

PDF Version (Published in Markham Board of Trade’s The Voice, Fall 2009).

Failing to Obtain Legal Advice from an Employment Lawyer at the Outset and Throughout the Course of an Issue

The complexity of legal issues surrounding employment matters requires proper legal guidance of an Employment Lawyer both prior to and after the issues have arisen. By obtaining legal advice from the outset in the specialized area of Employment Law and continuing to utilize it throughout the duration of the business, the employer will be able to avoid certain legal issues, as well as limit the impact of those legal matters which are unavoidable.

Failing to Have a Hiring Letter Outlining the Terms of the Employment Relationship

Many employers underestimate the importance of a hiring letter drafted by an Employment Lawyer. By including termination clauses, non-solicitation agreements, non-competition agreements and a process for future amendments to terms, such as hours of work and pay, a hiring letter outlines the terms of the employment relationship, provides guidance both during and after the cessation of the employment relationship, and avoids potential legal disputes which may arise in the absence of such a document.

Failure to Provide a Letter of Reference

An employer’s obligation to pay notice to a terminated employee may be reduced or relieved when the employee obtains new employment. Many employers do not realize that they can assist the employee in acquiring new employment sooner by providing them with a Letter of Reference. Failing to provide this letter ultimately hurts the employer by lengthening the employee’s period of unemployment and accordingly, lengthen the period of time that the employer must pay notice.

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