Government ‘should make small firms exempt from new employment rules’

Posted 16/06/2011

Significant changes to employment law areas such as the extension of paternity rights and the abolition of the default retirement age should not apply to less-sizable companies.

This is the view of the Federation of Small Businesses (FSB), which called for these regulations to be included in a three-year moratorium for micro firms.

A spokeswoman for the organisation highlighted research by the FSB that showed 27 per cent of such enterprises feel additional requirements are making it difficult to expand their operations, with one-third stating it is the biggest obstacle to growth.

She added the changes will “impose a big burden on small businesses” and could see many companies struggle to cope.

Recently, the Home Office called on businesses and community organisations to offer input on areas of bureaucracy that could be removed to provide a boost to the country’s economy.

It has also turned its attention to diversity and equality legislation for the next stage of its reforms.

If you are struggling to understand the impact of new employment law regulations on your business, please contact the team at Ashtons Legal for some expert advice.