Business Toolbox: Legal
Business toolbox: Legal tips for electrical contractors
Knowing where you stand legally is incredibly important for small businesses – so we’ve put your legal questions to our experts!
Our Legal expert:
David Chung, Founding Director – Creo Legal
Q: What do I legally need to do with regards to the updated data privacy laws?
David Chung, Founding Director at Creo Legal, says:
Small businesses with less than $3million in annual turnover are exempt from complying with the Privacy Act, including the latest updates, unless they are certain types of businesses, such as healthcare providers or financial service providers.
Nevertheless, small businesses are increasingly being targeted by cyber criminals who use automated methods of attack, making it economical for them to attack hundreds or thousands of smaller businesses.
Small businesses in every industry should adopt reasonable privacy and data security measures to avoid the commercial and reputational damage associated with suffering a cyber attack.
These include reviewing their data collection practices to ensure that they are only collecting information from customers and other persons that they absolutely need for their business to run. The tendency is to collect everything just in case it is needed, and this only compounds the risk for very little commercial benefit.
Data should be stored with a reputable storage provider with appropriate security measures such as multi-factor authentication. Only staff who have a need to have access to customer information should have access. People are commonly the weakest link in organisations of all sizes, so limiting who has access to sensitive data is a practical way of managing cyber risk.
Small businesses should also consider how they use the information they collect. If they intend to disclose information to third parties, they should tell their customers. Usually this information is contained in a privacy policy published on the business’s website.
Privacy policies don’t have to be complicated, they just need to let the public know how and when information is collected, how it is stored and protected, and if and when it is disclosed to third parties.
* Please remember, this advice does not take into account your personal or business circumstances, is general in nature, and is provided for information purposes only. Please seek professional legal advice that’s tailored to your circumstances if you need it.
Our Legal expert:
Sam Woff, Senior Construction Lawyer
Q: What are the implications of using subcontractors for jobs? What do I need to include in agreements with clients and the subbies?
Sam Woff, a senior construction lawyer, says:
Utilising subcontractors allows electricians to handle a wider range of projects, adapt to fluctuating workloads, and access specialised skills. However, this approach requires careful management to ensure quality, reliability, and legal compliance.
Implications for your business
Quality control: The work of subcontractors directly reflects on your reputation. It’s crucial to vet their qualifications, experience, and past work to ensure they meet your standards.
Liability and insurance: Subcontractors should carry their own insurance – including liability and workers compensation – to protect against accidents or damages. Verify their coverage to mitigate potential liabilities.
Regulatory compliance: Ensure subcontractors adhere to all relevant regulations and standards, including electrical codes and safety protocols, to avoid fines and legal issues.
Key agreement inclusions
Scope of work: Clearly define the tasks, deadlines, and quality expectations. Detail the materials to be used, and specify who is responsible for procurement.
Payment terms: Outline payment schedules, rates, and conditions for changes to the scope of work. Clarify responsibilities for any additional costs that may arise.
Insurance and liability: Specify insurance requirements for subcontractors. Include indemnity clauses to shield yourself from liability for subcontractors’ actions.
Dispute resolution: Establish procedures for addressing disputes or unsatisfactory work, including timelines for corrections and recourse for persistent issues.
Termination clauses: Define conditions under which the contract can be terminated by either party, ensuring you have an exit strategy for non-performance.
Including these elements in agreements with clients and subcontractors safeguards your business, ensures compliance, and maintains the high standards your clients expect.
Got a question for our experts? Email editor@gemcell.com.au
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