Retail Sector – Useful Employment Law & HR information

RBS Mentor can help your retail business with its Employment Law compliance and HR needs. Retail small businesses face huge challenges – not least strong competition from the big four supermarkets – and the pressure is constantly on to keep up. The detail of employment regulation will often be a long way down your list of priorities, but it’s important to get the basics right to avoid tribunal claims and fines. And treating your staff properly should lead to better motivation and improved customer service, with obvious benefits to your business.

Theft by staff and cash shortages can be problems

Stock and cash shortages are always a problem in retail businesses, and of course not all losses are caused by staff. It’s important to know that retail employees have special legal protection from deductions being made from their pay to recompense the employer for any losses. Failure to play by the rules could make your business liable to repay any deductions to the employee, and be legally barred from claiming them back.

You should:

  • Ensure you have written contracts in place to allow you, as the employer, to make deductions from wages for stock and cash shortages that are the employee’s fault
  • If you wish to reserve the right to search employees, this must be specified in the contract of employment
  • Ensure any deductions you do make do not exceed 10% of the employee’s take-home pay in any week.

RBS Mentor can provide:

  • Contracts of employment containing appropriate terms and conditions of employment
  • An Employee Handbook containing procedures appropriate to your business
  • Access to telephone advice 24/7

Young workers have special protections by law

Young workers often cut their teeth in the retail sector, which can offer hours to suit their studies. However children and young workers have particular legal protection. This includs their working hours, restrictions on working at night, and in 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:

24/7 telephone advice

Most retail staff have the right to opt out of working on Sundays

Except for staff employed specifically to work on Sundays, retail employees can opt out of Sunday working by serving appropriate notice on their employer. In addition, all workers are covered by the Working Time Regulations, which give an entitlement to at least one day off in seven. It’s important that employers in the retail sector understand these rights, and don’t inadvertently leave themselves open to unfair dismissal claims or fines.

You should:

  • Ensure all staff have appropriate contracts of employment containing any necessary provisions relating to Sunday working
  • Maintain good records of employees’ working hours
  • Keep managers informed of any opt outs.

RBS Mentor can provide:

  • Appropriate terms and conditions of employment and contract documentation
  • An Employee Handbook containing procedures appropriate to your business
  • Online guidance through MentorLive.


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