Business basics — answers to your common retail problems

Holiday entitlement
Question A couple of employees I took on years ago when I established my business have begun making plans for an extended time away from work this year. They appear to be convinced that, after more than ten years’ working for a company, they are legally entitled to longer holidays. There is nothing about this in their contract of employment and I am not aware of any new legislation providing for it. Where do I stand?

Answer Sadly, you are between a rock and a hard place. You may want to be generous, but some employers currently awarding long serving staff with the bonus of additional annual leave are now having to rethink their plans. Due to the age discrimination regulations this leave may now only be lawful where employers can demonstrate a good business case for treating longer serving staff more favourably.

Employer's pack
Question Having been a single-handed trader for a number of years, I feel I know my business well enough to expand and take on staff. However, my initial forays into the world of PAYE and employees’ rights have left me wondering whether I will ever be able to cope. Any suggestions?

Answer You can find most of what you need to know by requesting a “New employer’s starter pack” from the Inland Revenue or from your local business advice centre. This is a collection of leaflets, specimen forms and information on all aspects of being in business. It explains what to expect as a new employer and how to organise a hassle-free pay day.

Employment disputes
Question I have fallen out with an employee for whom I have great respect. Neither of us wish to take the matter to an employment tribunal and most certainly not to court. We have tried to resolve the dispute voluntarily but without success. Is there an alternative?

Answer The ACAS (advisory, conciliation and arbitration service) arbitration scheme, which has the advantage of being informal, non-legalistic, quick and confidential, comes immediately to mind, but much depends on suitability. The arbitrator will only consider the question of unfair dismissal or a claim under the flexible working regulations.

Any other issues, such as non-payment of wages or sex discrimination, must be settled, withdrawn or taken to an employment tribunal.