Corporations and Companies

Common Legal Issues in the Workplace

Managing a workplace effectively can be a challenging task. Aside from ensuring your employees are motivated, productive and efficient, as well as generally satisfied at work, you have other difficulties to worry about. A good example of this is common legal issues that might occur in the workplace. The fact of the matter is that legal issues are present in both employer-employee and company-consumer relationships.

How you treat your workers, as well as how you treat your customers can have negative consequences if you're doing things poorly. The laws governing over the workplace culture are specific and strict, but they also change quite very often. In other words, both employers and employees must be aware of these laws, in order to both remain compliant and protect their rights. With that in min here are a few of the common legal issues in the workplace everyone should be aware of.

Customer dissatisfaction

One of the most common legal issues in the workplace is customer dissatisfaction. Their dissatisfaction originates from broken promises and faulty products and services, in most cases. The level of dissatisfaction can range from customer outrage to class action lawsuits.

One of the usual scenarios involves increased consumer demand where companies sacrifice product quality, in order to meet the quantity. When products or services decrease in quality, they may become defective or even cause personal injuries among customers. Companies may offer warranties to customers with a promise of remedying certain issues within a certain time limit, which have to be honored properly.

However, if a problem occurs to multiple customers, they may join together to file a lawsuit against your company for negligence. In order to avoid such issues, every company must have quality control, as well as be proactive to prevent potential escalations that will result in hefty fines and a ruined reputation.

Worker compensation

Injuries at the workplace can be more common than you think. Proper safety regulations and precautions may decrease the chances of workers getting injured while at work but accidents still tend to happen regardless. Workers can make claims against the company unless you have workers compensation insurance policy. This insurance policy covers any medical bills and lost salaries in exchange for employees forfeiting their right to sue your company.

However, even with this insurance policy in place, it's up to the insurance company to determine what employees are entitled to when injured at work. That's why you should make an effort to have an effective compensation solicitor represent your employees so that they can get the most out of the insurance policy, as well as get the proper medical care for their injuries. Taking care of your employees is not just the right thing to do but also important for your relationship with them.

Workplace discrimination

Another common legal issue is workplace discrimination. Employers can oftentimes be biased and unfairly hire based on political views, gender, race, religion and so on. This opens a door for increased liability and even potential lawsuits. What's more, discrimination can originate from the employees themselves towards their coworkers. Usually, especially if left unattended, discrimination can grow into harassment and a company would be held accountable for not preventing it.

That's why it's important to ensure that your HR department is fully equipped to deal with such allegations and claims in an orderly and timely fashion. If an employee is discriminating colleagues, they should be punished or even have their employment terminated. You can hold regular meetings to assess the situation and determine if there is, in fact, discrimination at the workplace. Also, when screening and interviewing potential recruits, make sure you hire fairly based on qualification and avoid being bias.

Intellectual property and copyright issues

One of the most common legal pitfalls that can occur in the workplace regards intellectual property and copyright laws. Tech startups and small business can easily fall into this legal issue simply because they were unaware.

Large companies oftentimes trademark their existing work, as well as ideas for potential future work. You may ignorantly copy a competitor's work and thus trigger a major lawsuit. In order to avoid such an inconvenience, make sure you research potential products or content to determine if it's already protected by copyright law or if it falls under some other company's intellectual property.

Another reason you must tread lightly is that many companies tend to sit on a patent for years without actually developing it. One of the reasons they do so is to see whether an unaware competitor will fall into a trap so they can immediately make legal claims. Such claims can cost a lot of money, which can result in business failure. That way, companies get rid of competition without overrunning them on the market.


Legal issues can be quite common in the workplace and their consequences can be potentially disastrous towards the company. Even a minor claim can do serious damage to not just a company's budget but also its reputation. That's why it's important to familiarize yourself with common legal issues, in order to know how to deal with them, as well as avoid them altogether.