Employment: Proactive Strategies for the Current Legal Environment
The employment relations landscape is evolving rapidly, with growing union activity, extensive workplace harassment regulations, continued digitalization, and frequent restructuring becoming standard features. In this environment, thorough documentation from the moment a company is established is crucial for success in potential employment disputes.
Building a Legal Foundation
Adequate employment documentation extends beyond basic REVISAL (Employee Registry) requirements. Key elements include:
• Comprehensive Contracts: Individual employment contracts should include provisions for intellectual property rights, confidentiality obligations, and non-compete clauses tailored to your business specifics.
• Clear Job Descriptions: These should be detailed and signed by employees to establish role expectations and responsibilities.
• Internal Policies: Companies must establish internal policies covering working hours, occupational safety, performance management, and anti-discrimination measures within 60 days of establishment.
Companies often use service contracts instead of employment agreements for certain activities. This practice requires caution, as tax authorities increasingly reclassify independent activities as employment relationships, leading to significant liabilities.
Challenges at the 10-Employee Threshold
Upon reaching 10 employees, companies face new legal obligations:
• Collective Bargaining: Employers must annually invite employees to elect representatives to negotiate collective agreements.
• Harassment Prevention: Companies must implement workplace harassment prevention systems, including reporting mechanisms, designated complaint handlers, and regular training.
• Time Tracking: Accurate documentation of working hours becomes critical, as employees can claim compensation for overtime worked within the past three years.
Strengthening Your Legal Protection
As your organization grows, protecting business interests requires more sophisticated legal mechanisms:
• Policy Development: Clear guidelines on conflicts of interest, intellectual property rights, and conditions for parallel professional activities.
• Documentation Discipline: When restructuring becomes necessary, the success of employment termination procedures depends heavily on previously established documentation.
• Formalization: Any temporary arrangements made during growth periods should be formalized promptly to avoid complications during reorganization.
Our Employment practice assists companies through all stages of their organizational evolution, from guidance on documentation development to representation in negotiations and litigation management when disputes arise.