Because Katie knows Heather well – and because she’s so busy getting her business off the ground – she often doesn’t take the time to update their personnel records.
After about a year, Heather asks if she’s been paid properly for holiday and sick leave. Katie realises her holiday and leave records haven’t been updated in almost nine months. Together they go back through the calendar and pay stubs, a time-consuming and frustrating process.
They can’t work out the dispute amongst themselves, so call in a Labour Inspector. Hampered by the lack of records, the inspector imposes a penalty on Katie for not keeping adequate personnel records. Katie loses not only time but money.