If you haven’t been paying attention to international news, and with the disappearance of half your employees it’s understandable how you may have missed it, full compliance with the Sokovia Accords will be required by the end of the month. While you may not believe your business needs to fall into compliance if any part or person in your company makes contact with “enhanced individuals” you must meet all requirements of the Accords.
Despite all that has occurred in the last several months, the world, and the law, continue to move forward. To ensure you’re business systems fall into line with the Sokovia Accords, you will need to ensure several processes are set up and that they are monitored on a regular basis.
Problems with the Sokovia Accords
There are a few issues with the Accords that we and others have already brought to the attention of world authorities, but that, at this point have not been addressed. The first is that, as written, you as an employer may be held responsible for an enhanced person in your employ, even if you (or they) are not aware of their enhanced abilities.
Yes, you read that correctly, if you have an enhanced person working for you, and they cause damage of any kind you may be footing the bill for that damage. But wait, before you start firing anyone you may think has an ability, they are considered a protected class and they have rights under that protection. Despite that, what if you’re wrong and you fire someone that doesn’t have abilities? Don’t set yourself up for an unnecessary and costly lawsuit by trying to “protect” your business.
Another area of contention within the Accords is the lack of actual prosecutorial abilities it gives against enhanced individuals. Yes, they are required to register, and those that do can be held accountable, but those that don’t aren’t beholden to the Accords. A major oversight if ever there were one.
Protecting Your Business and Your Assets
Overall, the biggest issue we deal with as Attorneys Specializing in Sokovia Accord law is in setting up the right protections for your business assets in case of their destruction by an enhanced individual. Since many of the enhanced are otherwise normal people with average, if any, incomes they won’t be able to repay you for the truck that was blown up, the storefront that was knocked in, or even the doctor’s bill for a broken arm.
That’s where the right documentation comes in. By creating the right framework for your company, you can ensure that any losses you suffer and any damage you or an employee cause is covered. Here are the three major items you should put in place prior to the Sokovia Accord deadline:
- Registration Requirements: While registration for the Sokovia Accords can be a long and arduous process, keeping your company successful is equally important. That’s why we recommend you add a new section to your employment contracts requiring them to register if they begin showing enhancement.
- Sokovia Accord Protection Insurance: Regardless of what your company does, you should have an SAP Insurance plan in place. Not only will it replace any lost assets, but a full plan will also include business continuation insurance that will cover your costs while you’re rebuilding.
- Restructure: Depending on the size of your business, restructuring from a Sole Proprietorship or Partnership into an LLC, or even multiple LLCs might be the best way to protect your company. Limiting your exposure and your personal stake in the company’s holdings can keep you from being on the hook to cover repayment or replacement costs.
Whatever your situation, it’s never too late to have someone review your current company’s setup. Let one of our Sokovia Accord Attorneys take a look at your company’s structuring and see if there are opportunities you’re not currently taking advantage of. Call us today at (407) 906-JLAW (5529)
Image Credit: Patrick Brown