Small businesses swamped by employment law

The Federation of Small Businesses (FSB) has called on the Government to think twice about plans to increase employment legislation.


The Federation of Small Businesses (FSB) has called on the Government to think twice about plans to increase employment legislation.

The Federation of Small Businesses (FSB) has called on the Government to think twice about plans to increase employment legislation.

At present, there are 26 acts relating to employment and the Government is looking at introducing rules on temporary workers, employees who strike and bank holidays. The FSB believes that small business employers need to get to grips with recent changes before any new measures are introduced.

“Small businesses employ over 50% of the private sector’s employees, some 12 million workers. But most small firms do not have a personnel manager or HR department so any increase in administrative burden can have a direct influence on their ability to create jobs,” comments FSB policy chairman John Walker.

According to the FSB, the majority of entrepreneurs see the volume, complexity and rate of change of employment legislation as a major obstacle to growth. It believes that any further regulation could damage workforce flexibility, and says that there should be a period of stability in the next parliament to allow employers and employees alike to get to grips with the current rights and responsibilities.

“Entrepreneurs have large expansion plans, positive forecasts and big ambitions but they are critical of the cumulative impact of employment regulations. They depend on regulatory stability and a flexible workforce, both of which are put at risk with every new piece of legislation,” adds Walker.

For some help on this subject, go to the People in Small Businesses channel and also see our recent article, Dealing with misconduct.

(27/7/04)

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