Growing problems with employment law hit small firms

New figures from the Federation of Small Businesses show that employers are finding it increasingly hard to deal with employment legislation.

The figures, released yesterday, analyse the calls to the FSB’s free legal helpline on employment issues during 2005.

The figures show an increase of nearly 30% in the number of calls in 2005 compared to 2004, up from 55,036 to 70,943. As in the previous year, disciplinary procedures are the subject of the most calls.

Of the major issues raised the largest increases were on dismissal (174% increase – from 2771 calls to 7583) and grievances (118% increase – from 1122 to 2442).

The total number of calls to Abbey Legal from FSB members on all issues was 152,280, up from 141,471 in 2004. This is a rise of 8%.

Sandy Harris, FSB Members Services Chairman, said:

“There are at least 26 Acts of Parliament on employment issues and it is tough for small firms to deal with all their requirements, as these figures show.

“Our members want to protect their staff, their most important asset. They need assistance from the Government to do that by simplifying the rules and reducing the burden of compliance.

“We do not want to repeal or reduce all legal safeguards for employees. But without a simplification of employment law small firms’ growth will continue to be stifled. If the Government wishes to achieve its aims for future economic prosperity then it should take its foot off the pedal on employment legislation.”