#ADL 76: Maintaining Legal Compliance During Business Slowdowns
Part 1: General Overview
Every year, the same pattern repeats itself across the tech industry. By mid-June, the familiar panic sets in as teams realise half the year has slipped away with objectives still unmet. Suddenly, everything becomes urgent and must be resolved before the summer break. However, this break also provides a much-needed opportunity for rest and rejuvenation, which can lead to increased productivity in the months to follow. Then comes the inevitable silence of July and August, followed by the September awakening when everyone returns to discover various legal issues that need attention.
After eight years of working with tech companies, I've witnessed this cycle countless times. And the post-holiday reality check, when entrepreneurs discover various legal matters that accumulated during their absence, leads to increased stress and anxiety, and everything needs to be solved yesterday.
Since we're in mid-July and some of you haven't left for holiday yet, this is the perfect time to break that cycle. Instead of returning to a legal tsunami unleashed over your operations, you can prepare your business properly before you go. A little preparation now can save you from the crisis that typically greets you in September.
Contract Management: Your First Line of Defence.
It might be amusing, but when you have 50+ contracts on your hands (with employees, providers, partners, clients, and other stakeholders), it becomes overwhelming to keep track of when they all reach their term. Before checking the term, use a contract management tool or a simple Excel spreadsheet to keep all your contracts under one roof. Add a column with the contract termination date and follow it monthly, or set up automated reminders to ensure timely updates. This simple step will save you countless hours and prevent critical oversights.
Now that you have everything organised, verify whether you have any contracts terminating while you're away or even 2-3 weeks after you return. Always anticipate that the other party might be off as well, and things won't happen just because you return to work.If you prolong the contract, sign an Addendum to the contract before you leave or discuss its contents now and have it ready to sign upon your return.
If you’re stopping the contract, establish together what the next steps will be: prepare the handover receipt, schedule a wrap-up meeting, verify your cash flow implications, and document the transition process.
Check your Authorizations and Certifications Validity
Hopefully, you won't discover that you need to renew your certification in one week. Certification applications can be time-consuming and often involve significant bureaucracy. This means lots of paperwork to prepare and procedural steps to follow - you do not want to leave it to the last minute.
Prepare any necessary documentation before you leave on holiday, so that when you return, you have at least half of the paperwork prepared and ready for submission. Also, consider that there's always something that gets added: new conditions to fulfill or new documents to submit. You'll save considerable time and stress by knowing you left it all set up at the office.
Book all Necessary Appointments Now.
Are there procedures that require appointments? Trade registries, ministries, and government offices usually have their calendars booked for at least two weeks in advance. If you want things done quickly, book the appointments now and have everything ready when you return. Otherwise, you'll still need to wait another month for that appointment to be completed when you return.
Stay Tuned for Legal Changes
While you are away, new obligations may arise that you do not want to leave yourself vulnerable to. New declarations to submit to the fiscal authorities? New policies to be drafted in accordance with new EU Regulations? New certifications to obtain to fulfil environmental obligations? New licenses to sell those products you're already selling?
Even if the procedure is lengthy and you only discover it now, it will save you time to know about it in advance and prepare what you can. It will also relieve you of the stress of finding out about it when you're on your time off and being taken by surprise.
Involve Professionals in the Process.
You don’t have to be alone in this. Peace of mind comes from knowing that experienced professionals are managing your legal matters while you enjoy your time off with family, friends, or whoever matters to you. You can either assess what needs to be done yourself and involve a lawyer, financial consultant, or accountant depending on your needs, or even better, introduce them to your business beforehand so they can help you identify what's truly urgent and what can wait.
The summer legal preparation you do now will determine whether you return to a manageable situation or a crisis requiring immediate attention. The companies that consistently succeed are those that plan for predictable business rhythms rather than simply react to them.
Need assistance with organising the legal affairs in your business? Write to me here and let me help you while you enjoy your holiday without any worries: anamaria@legallyremote.online.
Have some thoughts?
Reply to this email and let’s chat! I’m open to constructive criticism and new brave ideas.
See you soon! The next issue is on July 31.
Photo by Tolu Akinyemi 🇳🇬 on Unsplash