Regulation halts hiring
Dec 12 2008
Regulation surrounding employing staff is putting small firms off hiring new people, despite the candidates being out there, an organisation warns.
The Federation of Small Business (FSB) says the red tape around recruiting staff puts some firms off employing.
A report commissioned by the organisation states the occurrence of sole traders and entrepreneurs has increased in the last ten years.
This comes hand-in-hand with a reduction in the number of micro-businesses, which employ up to nine employees, suggesting firms may be put off hiring staff.
John Walker, national policy chairman of the FSB, says research shows small businesses are good employers, who often train unskilled employees and offer flexible working.
'However, the figures also show that regulation is a real burden for employers who cannot keep up with more and more complex law and red tape,' he adds.
Walker describes this lack of hiring as a real loss to the economy.
The Department for Business, Enterprise and Regulatory Reform recently launched the Employing People campaign which aims to reduce the cost of implementing employment law in small firms.
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