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Did An Employee Sue You? Don’t Fret!

Studies have revealed that one in every ten small businesses has gotten sued by the employees, and a disturbing 43% has been threatened with the intention to sue or have battled a court case.

Any lawsuit can be damaging to an owner’s mental peace and pace of the business; it is notably worse in the case of an employee as they know ins and out of the organization. It’s also somebody you have worked with.

The Reasons for Getting Sued by an Employee

There are always employees that are disgruntled despite their salary, or a great work environment, and they retaliate the only way they know how – by taking an employer to court.

Following may be the reasons that an organization is getting sued:

  • Wrongful termination
  • Discrimination due to race, gender, or a unique circumstance
  • Violations in the employee contract
  • Injury while on duty due to the employer’s negligence
  • Harassment
  • Firing due to unjust reasons.

Minimize The Threat Level from Lawsuit

  • Anticipate The Lawsuit

Even before a court notice is served, a demand letter will be sent by the employee or appointed lawyer. There will be some conditions to be met, failing which they will sue the company. As soon as the letter comes in, send it to your attorney to get a professional reply drafted and to take consultation on how to deal with the present matter.

  • Ask for Professional Help Seek professional help

If you do get sued, ensure that you have specialized help. A business usually has its appointed attorney, but it is considered wise to select a counsel with experience and knowledge in handling that particular area in which court case is underway.

  • Never Engage Directly

Elnur/Shutterstock: Avoid direct communication

Do not make the mistake of contacting the plaintiff directly as you may say or do things that can have severe implications in the court of law. Communication should always be between the defendant’s attorney to the plaintiff’s.

  • Protect Your Finances

lovelyday12/Shutterstock: Invest in a Liability insurance

As a business owner, all kinds of contingencies need to be anticipated, and the loss comes with it. There are ways in which you can safeguard your money if the case goes to trial. Liability insurance helps to save businesses from any prospective claims, and getting business insurance will protect finances.

If an insurance cover has already been taken, communicate with the insurer whether this claim will be covered or not instead of assuming that it will be.

  • Do Not Panic

You are not helpful to anyone in a frenzied state. For testimonies to building your case, a calm and collected mind will have more chances of winning. Also, being the owner of an organization comes with a set of responsibilities that will not get fulfilled while panicking.

  • Learn to Safeguard from Future Lawsuits

It will be naïve to assume that a lawsuit will not be repeated in the future. Devise a company policy that encourages the employees to come forward with anti-harassment and anti-discrimination complaints that are dealt with swiftly. HR policies should also be clear not to motivate any employee to follow in their former colleague’s footsteps. Regular training for acceptable behavior can also be undertaken.

Getting sued and fighting a case is no piece of cake, but if you are smart enough, it may be easy to wiggle out of the problematic situation without severe consequences.

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