Less Red Tape for Small Businesses, Reports Claim

Less red tape for small firms, reports claimSmall firms are likely to be exempt from some of the most onerous employment regulations, under Government plans to boost employment by cutting red tape, reports have claimed.

Following the recent Jobs Summit, there have been widespread reports that the Government is set to unveil an Employers’ Charter – aimed at encouraging small businesses to recruit.

The Telegraph also suggested that reforms are in the pipeline which will allow businesses to sack staff during the first two years of employment without the threat of being taken to tribunal for unfair dismissal (currently, an employee can only bring a claim for unfair dismissal after one year). A fee may also be introduced for employees lodging tribunal claims to stop false allegations being made.

In addition, the length of time firms have to pay staff statutory sick pay may also be reduced.

A spokesman for the Department for Business, Innovation and Skills (BIS) would not confirm which regulations would be cut for small businesses, but said that an announcement would be made once the red tape review is complete.

“The Government is looking at the entire spread of employment law – including health and safety, and employment rights – to see how they can be simplified, while making sure employees are still protected. We’re also debating the possibility of exempting small firms from some laws to help make it easier for them to employ people, but there is no timescale yet.”

British Chambers of Commerce (BCC) director general, David Frost, welcomed the pledge to make recruitment easier, but said that the Government must do more to help SMEs.

“Some of the proposals aired by the Government, including reform of employment tribunals and a radical reduction in regulation for small business, would make a big difference. However, businesses want to know exactly what the Government plans to do to remove obstacles to taking on staff.”

Less Red Tape for Small Businesses, Reports Claim

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