adminborder after failing to package their goods with packaging that was specific to their product’s category.
Likewise a manager who is well versed about the law is better equipped to make the right decisions for the business.
They know when to make decisions and how to apply them. The company can avoid lawsuits and deal with potential legal problems that can retard growth and profitability into opportunities for building stronger business relationships. Business managers who don’t understand the law risk running into unnecessary and expensive problems.
Ignorance of the law can also rob companies of opportunities. One of my favourite cases that support the separate legal personality doctrine is the landmark UK company law case, Salomon versus Salomon and Company (1897) AC 22(HL) where Salomon relinquished responsibility to his company saying that the company was a separate legal persona.
The court could not pierce the corporate veil because Salomon’s company was formed legally.
Legal literacy for the employees needs to have a separate budget. Invest in courses that will teach managers important Statutory Instruments in labour law, consumer rights law and other industry related laws.
There are a lot of ways that the law can become a useful business tool. Goods sold on “voetstoots” (as it is) basis give the seller the autonomy to disown any malfunctions.
In Zimbabwe, organisations such as the Law Society of Zimbabwe have a substantive list of credible legal practitioners that the public can use.
Lawyer organisations assist protect the unsophisticated public against unscrupulous dealers.
There are also a lot of resources that every manager must have on their book shelf, such as the Companies Act and labour law
It is not only managers that need refresher courses on legal pitfalls that businesses face but these should be extended to sales personnel or and anyone within an organisation who maintains contact with customers.
Some of the arguments that our sales personnel have with customers can result in the company being sued.
I was amazed to learn during one workshop that there are things that we take for granted about our customers that must not be said or written to a customer.
It is wiser to equip our frontline staff with not only the right temperament but communication skills when dealing with the client.
Realistically, our labour laws tend to be heavily skewed towards the employee. Various case law and statutory interventions are tilted to protect the employee and employers need to also come up with ways of circumventing these laws. Absenteeism is known to be one of the most costly expenses to a company. If an employee is absent for a day it can cost the company as much as three days’ salary.
To prove this, you can actually calculate the hidden costs caused by an employee absence from work. More and more companies are losing money due to employees that take sick leave constantly. A manager must guard against abuse of sick leave. In Zimbabwe an employee is entitled to 90 days of sick leave on full pay during one year period of service.
I am informed of one company that has been struggling to deal with an employee who takes two days of sick leave each month.
Up to now, they are still struggling to break the trend. Employees must be investigated even if the doctor’s notes appear authentic.
Ignorance of the law must never be an excuse for the business to underperform.
Till next week, may God richly bless you.
Shelter Chieza is an Advisor in management issues. She can be contacted at [email protected]
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