Entrepreneurs are everywhere in this industry. Even in these chastened times, there is still no shortage of people ready to go out on a limb and set up their dream holiday business.
But when people are starting up a new operator or travel agency, they sometimes overlook all that boring legal stuff. However, the downturn has illustrated just how important it is to ensure you stay the right side of the law.
How to recover debt
The travel industry works on small margins, so cash is king. Most businesses are comfortable pursuing debtors through the small claims court in the UK, but are often confused about what to do if they are owed money overseas.
The good news is that debt recovery within the European Union has been simplified recently. You can now pay a fee at your local county court to use the European Small Claims Procedure, European Order for Payment procedure, and the European Enforcement Order.
Draft your booking conditions properly
If you are organising packages, be sure to include the right limitations and exclusions in your booking conditions, as allowed under the Package Travel Regulations (PTR). Getting them right will prevent certain claims getting to court.
Similarly, the PTRs allow you to charge customers for certain reasons (for example, some transport costs). But you must spell these out in your booking conditions or you cannot charge for them.
If the clause in your conditions does not exactly reflect what the PTRs permit, then the clause will be void and unenforceable.
Dealing with claims
In claims for accidents abroad, the injured party needs to prove that the failure that caused the accident occurred because local health and safety standards were not adhered to. Claimants often struggle to find evidence of such a failure, and if they can’t produce it, you shouldn’t pay.
Should the claim move on to court, the key to a solid defence isn’t just to have an arguable case – it is to persuade the court that your version of events is the right one. You need good and credible evidence collected as close to the time of the event as possible. Witness statements, reports, photographs and video footage are invaluable.
Supplier Contracts
Always make sure you have properly drafted supplier contracts to ensure you can recover any compensation you have to pay out . Get the full details of your supplier, including company name and number, and the contact details of the management. The indemnity and the law and jurisdiction clauses are vital to make recoveries effective.
Staffing issues
HR is a typical area where smaller businesses fall down. A properly drafted disciplinary procedure can ensure staff are performing to their best ability, and can help identify problems – vital to avoid claims for unfair or constructive dismissal.
Making redundancies is always tough. Ensure you stick to the redundancy process, and apply fair and objective selection criteria.
Remember, the right to request flexible working has been extended to parents with children under the age of 16. Although you do not have to grant requests for flexible working, you must seriously consider them.
Could you grant requests for flexible working and avoid redundancies? This can be a great way of boosting staff morale, while protecting the company’s business interests.
- Want more practical guides? Go to travelweekly.co.uk/howto