Every entrepreneur struggles to find enough time to complete the day’s tasks. Sales targets have to be met, issues raised by customers have to be resolved, and there are usually several administrative matters to be attended to.
Legal matters usually get very little attention from a small business owner. But there are literally dozens of laws that apply to small businesses that need to be complied with. Additionally, the authorities regularly issue amendments and new regulations. The proprietor of a small business must keep abreast of all these changes.
Awareness about the laws that impact your business can be good for your bottom line as well. What are your legal rights and obligations regarding your employees? Can you prevent a competitor from copying your successful new business process or product?
Here is a brief list of some of the legal issues that every business owner should have an understanding about.
Getting paid for the services that your firm provides or the products that it sells can sometimes be difficult. Customers may delay payments or even refuse to pay.
What can you do in such a situation? If you think that you would not like to deal with the customer in the future, you could be tempted to send a legal notice.
Sometimes, this seems to be the simplest and most logical course of action.
But you should not take such a decision in haste. Experienced business owners know that there could be many reasons for non-payment. Before going down the legal path, you may want to spend a little time to understand why your payment is not forthcoming.
In any event, it is always advisable to hold a discussion with your customer before you actually initiate legal action. Proceedings in Singapore’s civil courts can be both expensive and time-consuming.
The success of a small business hinges on the efficiency and productivity of its workers. You may employ various categories of employees in an effort to minimise costs. Many firms use a mix of full-time workers, part-time staff, and casual employees to meet their organisation’s objectives.
However, remember that it is necessary to enter into a “contract of service” with those you employ. Singapore’s Ministry of Manpower has stipulated that all employers must issue “key employment terms” (KETs) in writing to their staff.
Which are the KETs to be included in your communication with your workers? Among other details, you must list the job title, main duties and responsibilities, working hours, and salary details. The government’s guidelines list 18 areas that could be included.
Employing staff places great legal responsibility on the business owner. Your employment contract should also cover the terms and conditions governing termination of employment. If you fail to follow the guidelines that have been laid down, it could lead to a legal case being filed against your company.
Many small businesses neglect to protect their intellectual property rights (IPR) effectively. What exactly is intellectual property and how can you establish your rights over it?
IPRs fall into three broad categories:
How do you go about establishing your rights over your intellectual property? Fortunately, Singapore has one of the most robust IPR regimes in the world. The Intellectual Property Office of Singapore provides all the details that a small business could need regarding patents, trademarks, and copyrights.
Registering your trademark is quite simple and inexpensive. The cost ranges from S$240 to S$374 per trademark.
A small business should carry out a review of its products and processes and understand whether any of them can be protected by law. Taking pre-emptive measures regarding your IPR can help you to ensure that your business remains profitable in the long-run.
Chanced upon this. Great article!
IP protection is definitely the way forward for many of us who wants to build a sustainable business. Just hope that with legal protection, we don't end up spending more money chasing after companies that infringe on our IP.