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Small businesses complain of employment law burdens



The value of an employment law solicitor service to small businesses has been highlighted by a new survey revealing many are not hiring employees because of layers of red tape.

Legislation including pension requirements, dismissal rules and sickness absence regulations are barring sole traders from hiring staff, according to the study from the British Chambers of Commerce (BCC).

Nearly one in three businesspeople (32 per cent) identified forthcoming pension changes as the top barrier to taking on staff.

Over a quarter (27 per cent) of sole traders said the dismissal process is a significant or total barrier to hiring employees.

The BCC called on the government to tackle this problem by exempting sole traders from "burdensome" employment legislation.

Dr Adam Marshall, director of policy at the BCC, said: "Exempting new businesses from upcoming pension reforms, either for their first three years in business or until they have more than ten employees, would remove the one of the biggest barriers to job creation."

A separate survey from the BCC recently revealed that health and safety legislation prevents a fifth of sole traders from taking on their first employee.

Posted by Alex McLean ADNFCR-1678-ID-800612260-ADNFCR
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