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October 2007

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Business basics — answers to your common retail problems

By business contributor Reg Peplow

Equal pay
Question We recently had a call from a solicitor claiming to be acting on behalf of three of our female employees who, admittedly, were receiving slightly lower pay than a number of men doing similar work. The solicitor said he planned to go to court on their behalf to seek equal pay (backdated) plus compensation, and would we care to settle? What do you suggest?

Answer Experts I have consulted suggest that you should take immediate steps to ensure equal pay and opportunities throughout your business and that you do not let your standards drop. Court action seems unlikely as “no win, no fee” lawyers of the type you have encountered have brought the equal opportunities tribunal to a virtual standstill with a log of thousands of cases waiting to be assessed.

Accommodation expenses
Question I have offered living accommodation to a couple of workers I plan to employ for the seasonal rush and perhaps for a while afterwards. Can I deduct the value of this from their pay?

Answer Accommodation can count as pay but only up to a low daily amount calculated in accordance with a complicated formula. This is subject to an absolute maximum, just increased from £4.15 to £4.30 a day.

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