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More than three quarters of employment lawyers believe the proposed employment law reforms announced last month will lead to a ‘hire and fire’ culture within small businesses.

According to a poll by find-a-solicitor service Contact Law, two thirds (67 per cent) of employment lawyers surveyed do not believe the proposals are ‘workable’, and fewer than one in ten (8 per cent) is in favour of all the changes.

The proposals include an overhaul of employment tribunals, which is hoped will deliver £40 million a year in benefits to employers, and a call for evidence on whether the 90-day minimum consultation period for collective redundancies is restricting businesses and should be reduced.

Almost three quarters (73 per cent) say they do not think the reforms would encourage small and medium-sized enterprises to take on more staff, and almost two thirds (63 per cent) do not think the changes would alter the way that small businesses deal with their staff.

A third also believe the reforms will lead to small businesses losing out on talent in the jobs market, with jobseekers deterred from considering small businesses when looking for employment because of concerns over job security.

Contact Law legal expert Therese Wallin says, ‘Vince Cable’s proposed employment reforms are generating a great deal of debate among legal professionals. While some of the changes have the backing of the industry, many of the other proposals are far less popular.

‘But what is clear is that amongst those lawyers surveyed, the majority don’t agree with Vince Cable’s assessment that the reforms won’t lead to a ‘hire and fire’ culture. The general feeling seems to be that rather than assisting small businesses, these reforms could actually have an adverse impact. It’s difficult to see how the proposed changes, in their current form, could be implemented without a significant degree of resistance.’

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