When you are an owner of a business, size immaterial, the last thing that you want is a lawsuit on you in the personal capacity or on your establishment. The suit can cause damage at so many levels. It can shift your attention from the line of production and efficiency to constantly defending yourself and the company. And believe me, you that it is not the best place to be. The mental torture apart from the obvious physical nature is obvious.
The employees as a family!
Small and midsized business are managed mostly by proprietors or family units that over time treat their workers as a family in order to steer the organization towards a personal and financial goal that is good for both of them. It is a symbiotic relationship.
But sometimes, unfortunately, a disgruntled employee may end up either slyly or be felt slighted as someone who will report the organization for unfair treatment to its employees.
It is estimated that small and medium companies that are to say companies that have medium capital investment and less than 500 employees generally end up paying the exponential amount in legal fees, court fees and settlement charges that can create a dent in the company’s coffers and also belittle the company’s image in the market.
Here are the reasons why an employee may sue an employer:
- To seek revenge:
The possibilities are infinite. It could have been that the employee may have been slighted because he thinks that he blew the whistle on the employer and that is why he was treated badly. It could even be a misunderstanding.
- Termination of employment:
In case of not being satisfied with the employees work and ethics, the employer may terminate him but not without taking adequate precautions such as the paperwork and following the state legislature to the T. also a copy of all correspondence between them and him must be maintained so that he is not allowed to state that he was discriminated.
- Harassment issues:
Sometimes, the employees have sued employers when they have not been effective in stopping harassment by third [arties like customers and sellers. Needless to say that the court always sides with the employee and the onus of proof is heavily on the employer.
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