Small firms 'struggling with employment legislation'
Commercial insurance
17th September 2009
Many small businesses in the UK find it difficult to comply with the increasing burden of employment law, industry leaders have suggested.
According to the Forum of Private Business (FPB), small and medium-sized enterprises (SMEs) are struggling with a £2.4 million burden of red tape each year.
New figures from the organisation revealed that more than one-third of calls made to its helpline in August were related to employment regulations, with bosses particularly interested in help and advice regarding dismissals and redundancies.
FPB policy representative Matt Goodman warned that SMEs would be hit hard by new regulations coming into force on October 1st that will increase the national minimum wage and the cost of redundancies, potentially pushing up costs relating to other statutory compensation payments.
Insurance for business customers may also be interested in the results of a recent survey conducted by the Federation of Small Businesses, which suggested that one in three of the body's 2,500 members polled found Jobcentre Plus to be either "ineffective" or "very ineffective".
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