What are the Most Common Legal Issues Businesses Face?

No one wants to have to endure a legal dispute, or hire the services of a commercial law barrister when they’re running their own business, but sometimes these things happen. So, what are the most common legal issues that appear time and time again, and when might you need to reach out to a corporate barrister?

If you know what the potential issues are, you’ll be better prepared to ensure you won’t have to deal with them somewhere further down the line.

Your Business isn’t Registered

When you set up in business you need to register it with the HMRC – which you can set up on the GOV.UK website. If you fail to register your business correctly, any direct access barrister will tell you that you could endure serious legal issues ahead. The process of registering your business is simple to do and you’ll need to decide what category your business falls into -

• Sole trader
• Partnership
• Limited Company

Register your business as soon as you can and make sure you choose the right option. There are different legal implications for businesses that are sole trader, partnership, and limited company, so it’s vital that you register correctly.

Staff Issues

If your business is at the stage where you need to bring in employees, you need to be prepared for all eventualities. Staff can bring massive benefits to a business, but the wrong people can also bring a whole lot of trouble which could lead you in the direction of a business contract dispute.

Staff issues are some of the most common legal issues that a business will face, and they include -

1. Discrimination – Staff are entitled to equal opportunities and a workplace free of discrimination. However, it’s not always the case. To ensure you steer clear of any allegations of discrimination, make sure your staff are treated equally regardless of their age, race, gender, and ethnicity.‍
2. Termination – Terminating employee contracts can be a minefield and you’ll need to ensure they’re handled correctly and carefully else you could be faced with a lawsuit. In brief, when it comes to terminating a contract, you’ll need to have a notice of termination in place, supply appropriate reasons, and ensure enough notice is given should you choose to terminate their contract.‍
3. Employee Type – when you hire someone, make sure you choose the correct employee classification: full-time, part-time or contractor. You can find out more info about the different types of classification on the GOV.UK website.‍
4. Confidentiality – sometimes you’ll need to share confidential information with your employees. When this happens, make sure your employees agree and sign relevant confidentiality agreements.‍
5. Health and Safety – is vitally important in the workplace. There will be health and safety guidelines that apply to your business’s industry, but it’s important that you put your own health and safety policy in place too.‍
6. Cyber Security – if your employees use their own computer to carry out company work, you’ll need a BYOD policy in place. This will ensure your network is protected.‍
7. Workers from Overseas – make sure all workers from overseas that you employee have the correct work visas in place. You can find out more information about recruiting people outside the UK on the GOV.UK website.

Shareholder Disputes

When new businesses start up, they’re often done so between friends or family. This can seem like such a great idea that even the thought of needing to put relevant documentation in place can seem unnecessary. After all, friends don’t fall out... do they?

If you’re keen to avoid the services of shareholder dispute solicitors, or a lengthy dispute resolution in London, then put the appropriate documents in place when you start out. An official shareholders’ agreement is an absolute must to ensure you steer clear of a painful shareholder dispute resolution. Because, sadly, sometimes friends do fall out.

Issues with Intellectual Property

Legal issues to do with intellectual property are often some of the most complex disputes a business will face. ‘Complex’ means both time and money, so make sure you’ve got everything in place with regards to your intellectual property. Use patents and trademarks to keep your competition from stealing your ideas, and make sure you check any ideas you generate aren’t already in use.

As with everything, knowledge is power, so inform yourself around the laws to do with intellectual property and you’ll be doing your best to avoid a legal battle.

Slander and Defamation

It can take a lot of inner strength and deep-breath work to avoid saying - or writing - things you’ll later regret. When it comes to business, emotions can often ride high, but making the mistake of communicating disrespectful statements about your business competition can have serious consequences. In the heat of the moment, it’s very quick and easy to write a negative statement on the internet, but this can be all it takes to start the ball rolling on legal proceedings with a commercial law barrister.

So, take a breath, don’t write the post, and switch off your social media. Instead, it’s much better to see your business competitors as healthy competition. See if you can work together to buoy each other on, bring business to each other, and champion each other’s strengths. Keep things positive and you’ll be better placed to avoid legal proceedings with a corporate barrister.

If you’re concerned about legal issues that you might face in business, or you’re looking for a direct access barrister who can help with a current legal concern, please get in touch with Mercantile Barristers today. We’re an expert team of highly-skilled and qualified commercial barristers in London that deals with legal advice and representation in a number of areas including: contractual disputes, commercial litigation, construction law, engineering, employment law, and wills and probate.