by John Timpson - Thursday, 30th August 2007 -

She wanted me to cancel our annual 25-year service lunch started by my grandfather in 1956. I refused, asked to see the Act, and discovered this was another example of experts embellishing legislation to put obstacles in the way of good management.

I firmly believe in rewarding loyalty and success by doing favours for superstars and discriminating against drongos. Here are the most popular things we do at Timpson:

Holiday homes: Four holiday homes are available to anyone with more than 12 months’ service as long as their application has the approval of their line manager. Accommodation is free but employees pay for travel, food and drink.

Hardship fund: We have more than £200,000 on loan to good employees in financial difficulty. We help when banks won’t come to the rescue. I would rather lend the money than risk employees taking it from the till. If we resolve problems at home our employees perform better at work.

Special occasions: We send champagne, money and vouchers to help celebrate weddings, babies and important birthdays. For example, the wedding gift is an extra week’s holiday and £100. If both partners work for the business, a wedding costs us double.

Birthdays off: In 2003, to celebrate our company’s centenary, we gave everybody their birthday off. It was so popular we now do it every year. If a birthday falls on a rest day or if someone was born on February 29 they can choose a different day.

Surprises: We like giving treats when they are least expected. Brian Armstrong is a big John Wayne fan, so big that on John Wayne’s birthday Brian covers his shop in Accrington with John Wayne posters. So we invited Brian and his wife for tea, supposedly to mark his 40 years with Timpson. But my son James sprang a surprise by giving Brian an all-expenses-paid trip to Iowa – John Wayne’s birth place.

Football tickets: Three Manchester City season tickets are available free to ardent fans (we employ plenty). We are extending the scheme through the Premiership and now have tickets for Newcastle United. However, despite danger of discrimination, I will never buy tickets for Old Trafford.

Award dinners: Every 18 months we have an awards dinner. There are lots of categories and finalists bring their partners to a glittering occasion, usually in a marquee in our garden. The dinner is our way of celebrating success and praising winners – it’s an orgy of discrimination in favour of high achievers.

Pension fund: We passionately believe in providing the best possible pension. Despite the hurdles erected by the Pensions Regulator, we have a highly competitive final salary scheme, with no deficit.

Chairman’s award: This benefit discriminates without a hint of apology. If I hear about someone who has gone well beyond the call of duty, I send a handwritten letter and enclose a tax paid cheque to say thank you.

These ideas have helped create a much better business. I will steadfastly defend them against the lawyers and killjoy consultants who want me to promote a code of mediocrity to avoid being sued by the worst people in our workforce.

I am happy to ignore all the guidelines, risk going to court and become a martyr to common sense.

John Timpson is chief executive of Timpson. His business books, including the latest, How to Be a Great Big Boss, are available from www.timpson.co.uk