As a small business owner, managing your legal obligations can feel overwhelming. As your business grows, your small business legal advice needs only get more complex. However, there may be free or low-cost resources available to help you get a handle on these matters. It’s important to understand what’s available, how it can help, and when hiring professional assistance may be advisable.
Key takeaways
- Small businesses may be able to access free or low-cost resources for disputes and other matters.
- There are state and national organisations that can assist businesses with legal disputes.
- It’s important to know when to seek tailored legal advice from a business lawyer.
- Prepare for your meeting with your lawyer to get the most out of the consultation.
What can free legal services help with?
Eligible small businesses can generally access free or low-cost mediation and dispute resolution services. This may be used to help with different issues, such as contract disputes, fee cancellations, payment enforcement, and overturning government department decisions. There are also low-cost options for legal support during disputes.
Where can small business legal advice get for free?
There are state-specific and national organisations that work with commercial parties to resolve conflicts. Here are some major resources to keep in mind.
Australian Small Business and Family Enterprise Ombudsman (ASBFEO)
The ASBFEO was established in 2016. It works with small businesses and family enterprises across Australia to work through disputes and find practical solutions. The Ombudsman doesn’t act as a business’s personal legal representation. It explains possible avenues to resolution and referrals to relevant support services.
Referral tool
The ASBFEO may help small businesses identify the appropriate party to communicate with to resolve the issue. It can help with matters such as:
- Recovering unpaid invoices.
- Disputes between businesses.
- Retail lease disputes.
The tool walks you through the process by asking pertinent questions that frame the needs of your case.
Dispute assistance
If a business is unable to resolve the issue through the referral tool, the ASBFEO can work directly with them. This is done in two stages:
- Stage 1: Hold a discussion with the small business to clarify what the issues are and explore possibilities for alternative dispute resolution (ADR).
- Stage 2: Provide advice for getting the most out of ADR. This can include determining what documentation may be needed as well as understanding what the ADR process entails. It’s crucial to go into the process with a clear focus on what a successful resolution looks like.
Eligible small businesses are required to cover a $100 co-payment after receiving the first hour of legal assistance. Generally, eligibility for this service is the following:
- Have fewer than 100 employees, or an annual turnover of under $5 million in the previous financial year.
- Not have any legal representation.
- Have the matter being actively managed by an ASBFEO case manager.
- Be seeking dispute resolution in relation to a relevant action under s65 of the Australian Small Business and Family Enterprise Ombudsman Act 2015 or relevant industry code of practice.
Victorian Small Business Commission (VSBC)
The VSBC provides a pathway for commercial dispute resolution through their mediation framework. The VSBC appoints a dispute resolution officer (DSO) after receiving your online application. Parties don’t need to have their own representation. The general process involves the following steps:
- The DSO includes the other party in the process by providing the application and any other relevant documents. They may explore opportunities to resolve the issue through correspondence at this point.
- If preliminary assistance isn’t successful, the DSO may proceed to set up mediation. The parties are invited to meet with a mediation team at an agreed-upon time and place.
- Both parties are generally required to pay a mediation fee ($300 for a half-day session, $600 for a full-day session. The Victorian government subsidises the remainder of the cost).
- On the day of the session, the mediator will work with both parties to clarify their position and seek actionable solutions.
Fair Work Commission’s Workplace Advice Service
The Fair Work Commission works with eligible parties on employment issues concerning any of the following:
- Dismissal.
- General protections.
- Bullying at work.
- Sexual harassment at work.
To be eligible, an employer must meet the following criteria:
- Have fewer than 15 employees.
- Not have legal representation or human resources staff.
- Not be a member of an employer association.
- Have an enquiry that is covered under a relevant employment matter.
After applying online, an appointment can be made for you. The appointment may take place in person or over the phone. The appointment can last for up to an hour, during which you’ll have the opportunity to speak to a lawyer about your situation. They’ll listen to your account and may advise on what a proceeding before the Commission could involve and how likely you are to succeed.
When should a small business pay for legal advice?
Free or subsidised resources for small businesses can be useful to identify conflicts and access resolution methods. However, businesses can face complex legal concerns that require a tailored approach. Here are some circumstances where personalised advice may be necessary:
- As your business grows, you may start entering into larger contracts that carry greater risks for your operations. It’s critical to have a professional review the contract before signing. Provisions that seem routine may contain wording that has unintended consequences.
- A sole trader’s operations can develop to the point where it may be worthwhile considering taking on a company structure. This is a big decision that’s typically only undertaken with legal support. A lawyer can help you understand how the change will affect your business governance and compliance obligations.
- Business owners can deal with a variety of concerns related to matters such as licensing, safety compliance, and consumer protection. An experienced lawyer with industry-specific knowledge can play a crucial role in protecting a business’s operations.
How to prepare before speaking with a business lawyer
To get the most out of your partnership with a business lawyer, it’s important to work with the right law firm. Preparing effectively for the first meeting with your lawyer can help you determine whether they’re the right fit for your business. Here are some factors to consider:
- Write down the main problems that you need help with. You don’t need to understand the correct legal terminology or the relevant legislation. Explain your situation in your own words, and your lawyer can apply the law.
- Gather supporting documentation that’s relevant to the issue. That could be existing contracts, outstanding invoices, or business records. It can be worth discussing with your lawyer what documents may be required to avoid burying them in unnecessary paperwork.
- Prepare questions you may want to ask your lawyer. It can be useful to cover the potential risks and the likely costs. Make sure you’re clear on the path that the lawyer recommends and any alternative options.
- Your lawyer should be clear on your business objectives. This can be a vital part of how a legal issue is managed. For example, chasing up a contested invoice may be weighed against the importance of maintaining a positive business relationship.
Conclusion
The legal concerns involved with a developing business can cause considerable financial pressure. There are organisations operating at a national and state level that provide free or low-cost options for resolving conflicts faced by a small business. But there are limits to the assistance these organisations can provide. For some business concerns, tailored legal help may be necessary.
Do you need help with your business’s legal needs?
Summit Legal brings over two decades of experience supporting businesses with their legal obligations. Contact us today for an initial consultation.
