Hospitality & Leisure sector – Useful Employment Law & HR information

RBS Mentor can help your hospitality & leisure business with its Employment Law compliance and HR needs.

Whether you run a hotel, restaurant, licensed premises or entertainment venue, we understand that your business puts customer service and enjoyment first. We know that you rely on your people to deliver an experience that keeps your customers happy and makes sure they return for more. However, staff create their own challenges for business owners, and Mentor can give you the support you need.

Tips and accommodation often go with the territory but can get you into hot water with the minimum wage

In the service economy, a significant part of your business’s income may be from tips and service charges. But since October 2009, employers are no longer able to use tips received from customers towards paying the national minimum wage.

In addition, if you provide accommodation to staff, there’s a strict limit on the amount you are entitled to deduct from employees’ wages to cover this, where they are paid the minimum wage.

You should:

  • Ensure your system for collecting and distributing tips complies with National Minimum Wage legislation
  • Put any accommodation entitlements and allowances in writing.

RBS Mentor can provide:

  • 24/7 telephone advice and support, including matters such as the National Minimum Wage
  • Regular legal updates and e-bulletins to keep you up to date with changes in the law.

You’ll rely on casuals and agency workers when things get busy

Leisure, recreation and hospitality businesses have to be particularly responsive to customer demand. So there will be seasonal peaks – such as at Christmas – but there will also be demands you’ll have to meet at short notice, so you’ll want to call on staff at short notice too.

You might use casual staff – but do you understand what employment rights they have? If you use agency workers, do you know that such workers have increased rights to parity with your permanent staff after 12 weeks’ service?

Getting these things wrong can be costly – because you may find it difficult to dismiss your temporary staff or be liable for the difference in pay between agency and permanent staff.

You should:

  • Review your use of temporary and casual workers, and ensure they have fit for purpose contracts
  • Ensure all workers have entitlement to 5.6 weeks’ paid holiday, as required under Working Time regulations
  • Consider how your business uses agency workers and where possible avoid long-term use that triggers parity rights.

RBS Mentor can provide:

  • Contracts of employment tailored to the needs of your business
  • Online holiday recording on MentorLive
  • 24 / 7 Advice and support on matters such as the operation of the Agency Workers’ regulations.

Young workers have special protections by law

Young workers, including those in full-time education, often cut their teeth in the hospitality & leisure sector, which can offer hours to suit their studies.

But children and young workers have particular legal protection, which includes limits on their working hours, restrictions on working at night, and restrictions on the work they are permitted to do. Breaching these requirements is a criminal offence and could leave your business facing a substantial fine.

You should:

  • Ensure you understand the limits on young workers’ working time and night work
  • Always pay at least the appropriate rate of the National Minimum Wage

RBS Mentor can provide:

  • How To guidance on employing young people and children on MentorLive
  • 24/7 telephone advice on matters including young workers’ legal entitlements.


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