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5 Important Facts of Employment Law for Business Owners

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Entrepreneurs need to learn about employment law because when you need to operate a company, familiarity with relevant law is important. You must know how to deal with employees while making sure that their rights do not get violated.

You should analyze what type of employee engagement your company needs as several types of contracts exist in each state depending on the type of business. Here, we have elaborated on some facts. Let’s explore the details:

Learn Termination Rules

A businessperson cannot fire his employee without giving prior notice especially if the employee is not at fault. You must learn termination rules for avoiding trouble. As per law, an employer cannot terminate his employees on the basis of gender, race, religion, national origin, and color.

So, you’ll need to be very careful regarding such things and if you have wrongfully terminated an employee, it is recommended to discuss the matter with a lawyer such as  Levitt LLP.

Learn About Harassment Law

Every company must have a harassment law. Biased behavior is also sometimes conflicted with harassment so you must learn the difference. Make sure to facilitate victims with law support in case the harassment incident happens in your company.

You should introduce some quality procedures in the company to avoid any sort of harassment activities. It will help your company grow and being a businessman, you won’t have to suffer problems. You must punish the ones that seem involved in harassment cases.

Learn About Employment Contract

Are you aware of the types of employment contracts? You will need to make a contract as per the type of business. Make sure that the contract does not contain unnecessarily strict conditions for employees because you will need to take good care of their rights.

If your contract is based on “at-will”, it means that you can terminate employees anytime or for any reason. So, you must make the contract carefully so that it can save you from legal penalties in the future.

Government-Mandated Benefits

Most private ltd companies are usually bound to provide government-mandated benefits to employees like sick leave, paid maternity leaves, increment, insurance, and many more. So, you must ponder if you can afford to provide government-mandated benefits to employees. Job description, role, salary, probation period, and other details should be mentioned in the contract. You must elaborate on the criteria of increment.

Working Hours and Overtime

It is the right of employees to get paid if they work more than designated hours. The overtime per hour rate is usually higher than the basic rate. You must implement the most appropriate formula for calculating the wages of staff.

You can add an extra clause in the agreement regarding basic working hours in a day, leaves per week, and overtime. In short, these are a few facts about employment law and business owners should be aware of them.

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