One of the challenges of running a business is keeping it legally compliant. Laws and regulations change often, and navigating these while trying to keep attorney fees to a minimum can be a tricky balancing act. If this is a problem you’ve been struggling with, here are some tips that can simplify the compliance problem.
1 – Leverage automation
There are plenty of software tools out there built to help businesses get more done, and many of those tools will also assist with different types of compliance. HR management software solutions, for example, often include contract templates, overtime tracking, and other tools meant to both make management easier and facilitate compliance. And there are plenty of accounting tools that do the same for tax compliance, and the KYB tool found on this website can help with UBO compliance.
Just make sure you’re using a software solution that is still being updated and supported. Laws change often, and if the software isn’t updated to reflect those changes, it may end up causing your organization more harm than good.
2 – Crackdown on toxic behavior
There is plenty of toxic behavior that isn’t overtly illegal. However, if left to fester, toxic work culture can give rise to workplace discrimination and harassment fast. And harder than trying to figure out where the line between legal and illegal is, it is best to play it safe and crack down on improper workplace behavior from the start.
It’s a good idea to make sure your company has a clear policy on subjects such as workplace bullying, sexual harassment, proper conduct, conflict resolution, and more. The good news is that you don’t have to sort all of this from scratch: there are plenty of great employee handbook templates out there that you can copy and adapt to your needs.
3 – Get a contract audit
It’s not uncommon for business law firms to offer contract auditing services, and those are worth using. An audit of your most important contracts and documents can help uncover compliance issues before they become a bigger problem. Often, compliance issues will arise not because the original contract was flawed but because things have changed since the contract was signed.
4 – Follow industry news
As mentioned, the laws and regulations that govern businesses in any given country are in constant change. It is seldom practical to keep track of all the changes, but you can at least keep an eye on changes that affect your specific industry.
Trade publications and niche-specific social media accounts — which may be run by institutions or by thought leaders in your industry — will often comment on important compliance changes week by week. You can also stay updated by signing up for different newsletters related to your industry.
If you choose the right sources, you’ll only need a few hours of reading every month to stay on top of what’s changed.
5 – Review employee classification
In most countries around the world, how businesses choose to classify their various employees is a big deal. It often affects how salaries are taxed, what rights and benefits the employee is entitled to, how the business is classified, and more.
Part of staying compliant is periodically reviewing your employee contracts to see if their classification needs to be updated. It may be the case that since joining the company, your employee has taken on tasks and duties far beyond their original classification.
