Business relationships both with suppliers and also internally with employees need to be clearly defined and understood by both parties to ensure that a business functions smoothly. Every business will face issues of some type or another but there are ways of reducing the likelihood of these.
Taking suppliers first, it is important to ensure how you are doing business with your suppliers. Are these on your terms or theirs? Always read the small print and question those parts of a contract you do not clearly understand at the outset. It is far more difficult to argue terms are unfair when you have arguably accepted them through an extended period of dealings.
In addition, do remember that when working for clients yourself your terms should be clear and not open to interpretation down the line.
Have you made your services clear? What about the scope of work you are to carry out, timelines and payment terms? Do your clients and customers really understand what the contract between you is? Can you do anything further to improve this?
With employees, many employers also forget the importance of legal terms and implementing procedures in the workplace. Since most employers are unaware of key legal issues this can result in conflict between employees and management. One way to avoid this situation is to ensure that an employer is clear about the required rules and standards of performance in the workforce. Furthermore, good communication is vital as it helps to iron out any misunderstandings that may arise later. The following points may help prevent conflict from the outset:
- Employment contracts are the same as any other form of contract, which require an acceptance as to terms to be communicated by both party members. Issues tend to arise if, for example an employee objects to a term in the contract which is later included, promotion or relocation being key terms.
- Employee's duties need to be carefully considered and defined as clearly as possible. If the requirements of the job are likely to change over a period of time, this should also be discussed in advance. Dealing with issues "as you go along" may be tempting but can increase uncertainty which may have cost consequences. Moreover, in every case it is prudent to build in some scope for varying the duties that an employee is required to perform.
Remember, in business as in other things, it is always better to avoid misunderstandings and problems right from the start before they have a chance to turn into costly conflicts between the parties.
As always, if you wish to discuss any matter with us do drop us a line or pick up the 'phone.