When your small business grows to a large one, it is advisable that a company policy is drafted. Why should you have it?
A company policy makes it easy for you to run the business. It can assist your business to operate without your supervision, and at the same time, provide directives on action to be taken during emergency situations. It also helps your company stay within compliance of federal and provincial laws.
When you craft your company policy, it’s best to take the assistance of legal professionals and here’s why.
Needs to have Clear Language
Your company policy is a document that people have to understand. In case of non-adherence, employees must not have the opportunity of citing ambiguity. This means usage of the right terminology and statements. Most importantly, the policy language can’t be vague. Nothing can be assumed. Everything must be spelled out.
Getting the language right is difficult if you don’t have prior experience in drafting policies.
Must Encompass Everything
A good company policy is comprehensive and must cover everything. The most basic elements it needs to have are policy makers, corporate policy, subordinate policy, procedural operation, conflict resolution, non-compliance consequences and policy exceptions.
A company policy is truly not complete if it does not cover all of these elements.
Stay within Compliance
Your policy is a key factor to ensure that your company stays within government laws. From the corporate structure to financial management to conflict resolution to procedural operation, there are laws and acts on each of them.
Violating compliance requirements can bring heavy fines and consequences to your business. Because of the multiple compliance rules one has to deal with, it can be difficult for a business owner to keep track of each one.
Review the Policy
If your company is a partnership or a corporation, the policy will have to be reviewed by the partner or the board members. This needs to be taken into account when creating the policy. Additionally, various aspects of the policy will have to be explained to the partner or board members.
Implement the Policy
A company policy is only as good as its implementation. If there is poor implementation and no consequence of violation, the purpose of a company policy is lost. This will negatively affect the organization you are building.
A professional lawyer will help you at every stage and assist you in overcoming each of these challenges. A lawyer is adept at utilizing the right legal terms to craft a clear policy. Having crafted company policies, he won’t miss out any element. Being an industry expert, a company policy drafted with his assistance stays within all compliance rules. Being present with you at every step of the way, he’ll facilitate communication between members of the company. There are multiple actions that can be taken against company policy violations, from warnings to legal consequences; he will help you pick the right one.
Don’t draft your company policy on your own. Prowse Chowne has served a host of companies in Alberta and we can provide assistance to you too.