The impact of employment legislation on micro businesses: a case study from the licensed trade

Pratten, John D. and Lovatt, Christopher J. (2005) The impact of employment legislation on micro businesses: a case study from the licensed trade. Journal of small business and enterprise development, 1 (2). pp. 290-390. ISSN 1462-6004

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Abstract

Purpose – This paper aims to investigate the extent to which public house licensees conform with employment legislation. Design/methodology/approach – The paper examines legislation within the hospitality industry. Five aspects of the legislation were selected and a case study approach was used with a sample of micro business licensees. Findings – The results show that those licensees who manage outlets on behalf of the large pub-owning companies had a far greater knowledge of the legislation than independent respondents who, in some instances, appeared to flout the legislation deliberately. Practical implications – The independent sector of the licensed trade appears to lack vital information about employment legislation, and licensees might not realise the consequences of ignorance or deliberate non-compliance. Those involved in running this type of micro business need to establish more effective sources of information on such issues. Originality/value – This paper offers a clear indication to all involved in the hospitality industry that there could be problems with employers within the micro sector gaining information about employment legislation and also adhering to relevant regulations.