Firms flounder in employment law mire
Apr 04 2006
Fresh figures from the Federation of Small Businesses (FSB) reveal the increasing pressure faced by employers due to the recent deluge of changes to employment legislation.
The research analyses phone calls made to the FSB’s free legal helpline on employment issues in 2005 and shows an increase of around 30 per cent in the number of queries directed to the ‘lobbying and benefits group’. Call traffic is up from 55,036 in 2004 to as high as 70,943 in 2005 and, as with the previous year, most calls came from employers who were vexed by the law surrounding disciplinary procedures.
The largest increases in calls related to two major issues: the formalities regarding dismissal (a 174 per cent increase from 2,771 to 7,583 calls) and grievances (up 118 per cent from 1,122 to 2,442 calls).
Sandy Harris, FSB Members Services Chairman blames the rise in confusion on the fact that ‘there are at least 26 Acts of Parliament on employment issues and it is tough for small firms to deal with all their requirements’.
‘Our members want to protect their staff, their most important asset,’ says Harris, ‘they need assistance from the Government to do that by simplifying the rules and reducing the burden of compliance.’
Whilst Harris is careful not to request a full repeal of all legal safeguards for employees, it seems clear that ‘without a simplification of employment law, small firms’ growth will continue to be stifled’.
Interested firms can call the 24-hour helpline on 0870 513 3307. Lines are open 24 hours for legal and employment law advice, and other services are available Monday to Friday, 9.00am to 5.00pm.