The best tips to avoid a labor lawsuit in the company

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The best tips to avoid a labor lawsuit in the company

Table of Contents

The labor process is the employee's action before the court, when he feels injured in the face of some problem in the working relationship with the company.

In this article we will talk about the labor lawsuit and what are the rights of the company and the employee before justice. The content will offer tips on how to take precautions and avoid a labor lawsuit.

The reality of the labor process in the company

Respecting labor laws and knowing company rights is the way to minimize errors in relation to the topic

The labor process is a means that the employee uses to claim his right over any loss he has suffered in relation to his employment contract.

Acting preventively and knowing the rights of the company and the employee before the law is the way for those who seek to manage their business without suffering from a labor process. Complying with what is promised and, above all, maintaining an open dialogue with employees is a way to avoid problems.

Many companies develop a strategic planning to prevent in cases of labor lawsuit. Although the reality is changeable, it is possible to clearly have the rights of the employee and the company before the law and in which cases a labor process may occur.

Being aware of the market reality and, above all, being able to control the contracts of your employees individually, minimizes the chances of error. Knowing what each employee is entitled to in relation to wages, vacations, overtime and other labor issues is a challenge that needs to become routine in companies.

But, at what points do I need to be on my guard? How to avoid a labor lawsuit? Although it is difficult to measure when an employee will file a labor lawsuit, staying within the law avoids problems with justice.

We have prepared a list with some tips for taking precautions and avoiding a labor lawsuit. See below:

Respect labor laws

Paying attention to contracts, hiring and firing processes, can avoid a labor lawsuit. The company needs to be attentive to the rights of the employee and mainly to document the employee's daily routine in the reality of the company.

Do not forget to always measure payments for overtime, 13th salary and vacation, which, if not met, may cause some labor problem in the future.

What the law says about employment

THE CLT law underwent adjustments in 2017, but the article 3 defines the meaning of employee, thus being able to determine and interpret what is considered an employment relationship. This article allows people who work as a PJ to file a labor lawsuit alleging employment and claiming their rights.

Art. 3 – Any individual who provides services of a non-casual nature to an employer is deemed to be employed, under his dependence and for a salary.

Single paragraph – There will be no distinctions regarding the type of employment and the condition of worker, nor between intellectual, technical and manual work.

Control the working day

Maintain control over how much your employee has worked on your journey it's fundamental. Overtime is often a problem if it is not under company control. She usually appears at the top of the list of labor lawsuits in the UK.

Regardless of the size of your company, it is more than essential to know the time your employee enters and leaves. If you have an optimal electronic point, if you are mechanical or physical there is no problem, the important thing is to have control over the time worked, so as not to suffer from any type of labor process later.

Remembering that according to the article 74 under the law of CLT companies with more than 10 employees it is mandatory by law that the company carry out this control of points officially.

Art. 74 – The working hours will appear on a table, organized according to the model issued by the Minister of Labor, Industry and Commerce, and posted in a very visible place. This table will be discriminatory if it is not the only time for all employees in the same section or class.

  • 2nd – For establishments with more than ten workers, it will be mandatory to note the time of entry and departure, in manual, mechanical or electronic record, according to instructions to be issued by the Ministry of Labor, and there must be pre-appointment of the rest period. (Wording given by Law No. 7,855, 10.24.1989).

Bank of hours

Many companies work with annual leave, which consists of an hourly compensation system that offers greater flexibility. When the company adopts this type of system, it manages to adapt the workday according to its needs.

In many companies, the hour bank, approved by convention or collective agreement, serves to reduce the employee's workload when demand is low.

In this case, the employee works less time, so when the company has a greater demand and needs it, it will be possible to count on its availability. It is worth noting that the salary does not change with this scenario.

The law and informal work

Beware of informal jobs. Not registering an early employee can bring savings to the company, however, it can become a plate full of possibilities for the employee to enter a labor process in the future.

Formal jobs offer greater security for the company, since within the law, it is able to protect itself from loopholes and losses that informal work can offer.

However, regardless of the choice between informal or formal work, the greatest responsibility of the company is always to be aware of the legislation and the labor laws.

A good admission process makes the difference

A good admission process it can make all the difference to avoid a labor lawsuit. When all procedures are transparent and there is a macro view of workers' contracts, labor errors are minimized.

And a good admission process does not end with the signing of the contract, integrating the new employee into the reality of the company is a great differential for admission.

Another important detail to make a complete admission is to expose all the material of the company with the internal policies and rules. Thus, the employee has a greater vision to achieve their goals and objectives, within the rules.

Care with dismissal processes

Firing an employee is never an easy task and if a resignation is performed incorrectly, it is quite possible that a future labor lawsuit will occur. And when it comes to dismissal, it is always very important to keep an open dialogue, so that the employee knows their rights and the possibilities of labor errors are avoided.

In cases of dismissal for just cause, for example, if the law is not enforced, the chance of an employee suing the company after leaving is very high.

Supporting the law is the best way to avoid a labor lawsuit in case of dismissals for just cause.

Automate HR processes

Automate HR processes it can decrease the cases of labor lawsuits. When all the processes of a collaborator are delivered to human hands, the bureaucracy can be greater. Controlling all the demands of the sector and integrating all actions in a management software can make labor issues more efficient and synchronized.

Dialogue makes the difference

A labor process can also be avoided with dialogue. When HR managers and professionals are always able to expose employees' rights through a newsletter, internal newsletters, a wall newspaper, errors can be minimized.

When the employee knows what he can and cannot do and maintains a good relationship with his superiors and with HR, the chances of a labor process occurring are reduced. In these cases of an open dialogue between the employee and the company, a bond of trust is created and there is greater respect from both parties.

Consider the profile of each employee

Each employee has his or her particularity, profile and conditions, it is the company's responsibility to achieve administer these differences and their relationship under labor laws. Being constantly attentive to the needs of employees is a way to avoid a labor process.

For example, how are your processes regarding maternity leave, retirement and other employee rights? Failure to comply with these rights can lead to a serious labor lawsuit. Respect the employee, be aware of labor changes, plan and organize your HR sector.

Prevention is better than cure

There is no ready recipe for facing a labor lawsuit. Each feature of the law puts the company face to face with a new reality when an employee decided to sue it. However, there are ways to prevent and take precautions before the law, as mentioned above.

If you plan strategically, investing in good HR professionals and managers who know how to deal with the profiles of their collaborators is a big step. Companies that have trained professionals who understand the law, tend to suffer less from this type of process.

This is due to the fact that they already have legal support when there is a case of labor lawsuit. Good HR often even foresees a labor process, as it manages to maintain an open dialogue with the employee.

This relationship often manages to avoid an action against the company, for the relationship of trust, between company and employee, created during the work period.

And do you know how to manage your employees? Check out our article “What is behavioral management and how can it help your company?”, clicking here, and learn more about it.


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