Most business owners understand the importance of complying with the law, yet few of them are sure of how to protect themselves from potential accusations of legal wrongdoing. This is because many entrepreneurs who are incredibly talented in commercial affairs are understandably ignorant when it comes to the complexities of employment law. Nevertheless, you can’t afford to ignore employment law – this will end up costing you significant sums of money and could even jeopardize your commercial existence.
Case law that demonstrates the risks
American case law demonstrates that any employer who doesn’t have a strong understanding of employment law could be in serious trouble sooner rather than later. When we discuss “case law,” what we’re talking about is previous legal decisions, which have established a precedent that could impact you if your company is ever involved in a serious legal dispute. Various cases demonstrate that employees could successfully sue your company if you don’t lay down a solid legal foundation for your business that will keep everyone happy and on the same page.
When Sen. Elizabeth Warren detailed her account of losing a job due to her pregnancy, for instance, it led to a plethora of people coming forward to share their stories of pregnancy discrimination. In some instances, workers have successfully sued companies on the basis that they were fired for being pregnant. This shows that you must clearly establish when someone’s contract ends if you don’t want to end up with a legal calamity on your hands.
It’s not only American case law that shows this, either: In the U.K., Laura Gruzdaite recently won £28,000 for discrimination related to her pregnancy because a company didn’t clearly explain in her contract that she was only a seasonal worker. The company initially hired Gruzdaite as a seasonal worker who