Licensees vulnerable to staff's legal claims

Licensees have been issued with a fresh warning over the dangers they face in failing to understand and comply with current employment laws.

The warning comes from the Forum of Private Business (FPB), which carried out a survey among small firms and found nearly 40 per cent were not confident they were following the current laws.

The study also revealed more than half - 57 per cent - of small businesses had not updated their discipline and grievance procedures over the past 12 months.

"Any business is at risk, but for pubs where there is a high turnover of staff, it's critical that they are getting it right," said a spokesman for the FPB.

"Licensees have got to know disciplinary procedures. If they don't follow the letter of the law, they risk getting blown out of the water. It may be the case that a claimant exaggerates a claim, but if the employer has not been following correct procedures, they do not have a proper defence."

In 2003 there were more than 115,000 tribunal claims and many more disputes were settled expensively out of court.

Jenny Stewart, the FPB's head of membership, also warned of the dangers small businesses face.

"This church-hall amateur approach to the law is just asking for trouble," she said. "Employment law is a minefield for small firms.

"We know running a small firm is massively time consuming, but it pays to have a robust grasp of employment law."

The results came as the FPB launched its 2006 Employment Guide.

The FPB is offering readers of The Publican more than 25 per cent off the guide, which includes a CD-Rom containing letter and contract templates, with the price reduced by £80 to £285.

To buy the guide, readers should call 0845 130 1722 before the end of February.

FPB members can buy the guide for £150.