Articles

new years' {legal} resolutions

by Steve - Posted 13 January 2010

Compiling a long list of audacious goals at 23h59 on the 31^st of December may seem a bit artificial, but there is something to be said for getting more focused and proactive at the beginning of a new year. Here are 5 resolutions to add to your list for getting the year off on the right track:

1.       The talk from the top is that the economy has moved from the ICU into recovery, but things are still going to be tight at least up till the 3^rd quarter of 2010. With the credit crunch being replaced with the “payment crunch”, cash flow management and sound credit policies will be key.

 Start collecting immediately on bad debts and run proper credit checks on new customers.

 2.       With cash being tight, your customers will continue to look for more for less, as will you from your own service providers and suppliers. Contractual litigation will remain on the rise in 2010.

Make sure all your agreements with customers and suppliers are in writing and drafted as tightly as possible.

3.       Retrenchments, salary reductions and loss of benefits will continue as businesses try to recover from the recession. This will cause a degree of unrest in many workplaces.

Don’t spend half the year in the CCMA, follow the correct procedures for dealing with retrenchments and poor performance as required by the Labour Relations Act.

4.       Even if the big freeze on credit from the banks is over, they will keep a tight rein on their lending requirements. If you need finance for stimulating your recovery, send the right message by getting your own house in order.  

Instill the necessary confidence in your internal management by paying close attention to your record keeping and document management policies.

5.       2010 sees the introduction of 3 major laws which will affect most businesses. The new Companies Act and Consumer Protection Act have already been passed and should become operational later in the year. The new Protection of Personal Information Bill is expected to be signed by the President some time after the World Cup.

All of these new laws are game- changers. Get up to speed on what your rights and obligations are under them.

NicciFerguson is running a series of workshops with clients from 25 January to 5 February aimed at getting their legal house in order for 2010. Contact Olivia on (021) 465 9175 or email mail@nicciferguson.co.za before 20 January 2010 to book a time that suits you. The workshops will be held at your offices.

Challenging times are still ahead, but the worst is definitely behind us. If you are one of those who are still standing – congratulations! Here’s to being leaner, meaner and smarter in 2010.