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Are you involved in risky business? And we're not talking about miming songs in your undies while wearing sunglasses

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Tom Cruise has a lot to answer for. The least of which is that classic scene in the movie, Risky Business.

As an entrepreneur, you know only too well that legal compliance can make or break a business.

The legal considerations for employees and the terms of their engagement with your company has many legal considerations to consider. If you’re not adhering to these, you are indeed, running a risky business.

Quite simply, you have to be compliant with the legal requirements of human resources, or HR.

And that doesn’t mean following some of the rules some of the time. It needs to start from the moment your organisation interviews a prospective new employee.

Lisa Spiden, director of HR outsourcing firm fibreHR, explained, “Every business should have a well drafted recruitment process to ensure legislative obligations are satisfied. During the interview process, all applicants must be asked the same questions, regardless of sex, age, race, sexual preference or disabilities.”

“This ensures an easier comparison of responses and dictates appointments are made on the basis of competency, skill and experience.”

According to Spiden, companies risk losing the big bucks if they wilfully choose to stay in the dark regarding employee contracts and current Awards.

“Out of date contracts that fail to accurately reflect current work practices cause no problem when everything is going well. However contractual terms that are not clearly defined may end up as a significant cost in legal fees as businesses defend their practices.”

Spiden also warned that failing to comply with current Awards and coverage could see businesses fined a cool $33,000 per employee per breach.

“Not to mention disengaged staff and the issues that come with that,” she added.

“Compliance with the terms and conditions of applicable awards must be adhered to at all times.”

Failing to follow legal compliance to the letter can also damage your brand and, in extreme cases, lead to imprisonment.

Don’t run a risky business. Do it right from the start.

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