For enterprises, besides developing production and business activities to increase profits, legal factors are also exigent.. They are even more important in the market economy, where a small mistake can have a big impact on the whole system. So what should enterprises do to be legally assured?
Let’s find out in today’s article with PL & Partners Law Firm.
1. EQUIP EVERY PERSONNEL WITH BASIC LEGAL KNOWLEDGE.
To be legally assured, first, we must comply with the law.
In order to comply with the law, we need to understand the law.
Therefore, all personnel in the enterprise need to be equipped with basic legal knowledge.
For managers, it is necessary to understand the rights and obligations of the enterprise, internal compliance and corporate governance, contract laws, taxation, dispute resolution, etc.
For employees, depending on the position and nature of the job, they should be equipped with relevant legal knowledge.
Being equipped with legal knowledge will help enterprise’s members be more proactive in their work as well as when dealing with customers and signing contracts. They will know all the dos and don’ts.
This knowledge can be equipped by looking up legal normative documents, searching for information on the internet or hiring lawyers and lawyers to organize short-term training courses.
All personnel in the enterprise need to be equipped with basic legal knowledge.
2. HAVE SPECIFIC PROVISIONS ON LEGAL COMPLIANCE.
In addition to equipping them with basic knowledge, enterprises also need to have specific regulations on legal compliance in writing which clearly states what behaviors are not allowed, and the fine range if violated.
These documents will be the basis for all employees to follow, the basis for handling violations, and also have a greater deterrence.
Enterprises can issue a separate set of rules or add regulations on legal compliance in the internal rules on operation, labor contracts or other regulations.
3. STRICTLY ABIDE BY THE LAW TO BE LEGALLY ASSURED.
All members of the enterprise from management levels to the lowest level need to uphold the law-abiding spirit. An enterprise that respects the law will receive the trust of customers, clients, partners and be protected by the law
Especially in activities such as transactions, cooperation, contract signing, tax obligations, etc.
Enterprises need to reconcile the desired benefits with the provisions of the law, thereby protecting themselves from legal risks.
An enterprise that respects the law will receive the trust of customers, clients, partners and be protected by the law.
4. ESTABLISH YOUR LEGAL DEPARTMENT OR USE THE IN-HOUSE COUNSEL SERVICES TO BE BETTER LEGALLY ASSURED.
To be better assured in relation to legal compliance, enterprises can set up their legal department or hire an in-house lawyer.
With both of these solutions, the legal work will be done by professionals. This makes processing faster and more efficient.
Specifically, by setting up a legal department, the enterprise will hire lawyers, or legal experts to be its employees.
The legal department will be responsible for handling all legal issues for the enterprise.
The advantage of setting up a legal department is that there is a team available in the enterprise, monitoring activities to give advice and handle work.
The downside is that enterprises will have to spend a lot of money, from salary, insurance, social benefits to cost of seat, equipment cost.
Meanwhile, when using in-house counsel services, enterprises will sign contracts with law firms. At that time, the enterprise will pay a periodic charge and the law firm will act as the legal department to provide weekly and monthly legal advice and handle legal affairs.
This method helps enterprises save more costs. Law firms have bigger teams with expertise in various fields, so they can handle work more efficiently. However, lawyers are not always right next to them to handle the work, so enterprises need to proactively arrange and contact lawyers as soon as they need support.
Thus, to be legally assured, enterprises will need to actively equip all personnel with basic legal knowledge, have clear regulations, always abide by the laws and be able to set up a legal department or use in-house counsel services.
Hope the above sharing is useful to enterprises, especially startup businesses.
If you need further legal assistance, please contact us at:
PL AND PARTNERS LAW FIRM
Headquarters: 46th Floor, Bitexco Financial Tower, No. 2 Hai Trieu, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
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We are always ready to assist you.
| The article is based on the applicable law at the time of writing and may no longer be appropriate at the time you read it due to changes in laws. Therefore, the article is for reference only. |
