Employment laws 'trouble small enterprises'
Apr 27 2009
The UK's smallest businesses believe complying with the mass of employment law is a major challenge, new research shows.
According to the latest British Chambers of Commerce (BCC) workforce survey, navigating employment legislation causes difficulties for 47 per cent of firms with fewer than five workers.
In addition, some industries are more affected than others, with 43 per cent of those in transport, retail and wholesales reporting problems, compared to just 27 per cent in the public, education and voluntary sectors.
David Frost, director general of the BCC, says the findings show the need for a temporary suspension on the introduction of new laws, in order to support recovery from the economic downturn and encourage firms to take on more staff.
He comments: 'If we are really serious about helping businesses, about creating jobs, why not have a complete moratorium on new employment legislation for the next three years.'
The BCC research also shows that half of the UK's companies have not recruited in the past six months, while 24 per cent intend to leave positions vacant when an employee moves on.
Last week, the Forum of Private Business called for amendments to the Working Tax Credits scheme to support short-time working, claiming it would help firms to retain employees.