Management Series – Legal Requirements of Managers

Increasingly I am noticing mid-management who aren’t aware of the legal obligations; how many hold their own indemnity insurance? At the end of the day if a legal contest comes into play; a company will not try to ‘justify’ if the laws are stacked against the company. In the best interest of the company they will avoid press and media; and distance themselves from the manager in question. Stating that they ‘acted on their own accord’; so why don’t managers then get a basic understanding so they know what they legally can do, and what could end them up in hot water.

Seeking legal advice

Most companies pay a team of legal staff to provide advice, call your legal team explain the situation and seek the company’s view in regards to it. Like anything keep notes on the advice given to you, and who told you what. In IT there’s a famous saying “if it’s not in the ticket it never happened”; it’s there to cover each person and ‘pass the buck’ or you can see it as ‘covering your ass-ets’.

What could happen?

As a manager if you are left standing on your own, all assets you have could be ceased, and you might be liable for damages to pay; and if you acted outside the Federal and State laws generally your company will not help you out.

It’s not like in Suits the TV show, more often than not companies don’t want bad publicity and especially when serving government agencies it can reflect poorly on the company and challenge departments to what the company’s actions reflect.

Self-taught

You could take the other road and read up on the employment laws, and understand things; possibly challenge your HR/Legal with concerns and uncertainties you notice. At the end of the day you as a manager are also protecting the company and also yourself.

Reading up and knowing your entitlements and what you are able to do by law; will help you to make sure you will have the company’s legal team on your side; as well as happier team because you are treating them ‘fair’ according to the laws.

Better to be safe than sorry

It is always better to cover yourself, and ensure your assets and hard work don’t end up being stripped because you ‘broke the law’; neither the legal system or your company want to ‘justify’ your reason for breaking laws that are there to protect working individuals.


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