Employment Law Red Tape: Worry About It or Get Rid of It?

77% of small firms say employment law red tape is a major worry. Whilst 82% say they should be allowed the freedom to hire and fire without red tape imposed.

According to 1027 small business owners who called Peninsula Business Services…

  • 77% of small firms say regulatory employment law/HR red tape is a major worry for them.
  • 89% of employers say they want the Government to cut red tape.
  • 82% say they should be allowed the freedom to hire and fire without red tape imposed.
  • 71% admit they are afraid of dismissing under-performing employees in case they end up at employment tribunal.

Peter Done, managing director of the employment law consultancy, Peninsula Business Services said today;

“For years I have been listening to small firms vent frustration at the amount of red tape they they have to follow – I feel their frustration. So I hope the pledge made by the Government to review employment laws in the UK becomes a reality and doesn’t end up being a false promise.”

Peter Done continues:

“Red tape restricts small firms from growing, the cost to ensure compliance can be costly whilst at the same it is time consuming. Imagine if the amount of red tape was significantly reduced, it would allow employers the time to concentrate on running their business and hopefully improve the bottom line.”

Done advises;

“Employment laws are of course necessary to protect employees and to provide them with the rights that they deserve, however the right balance needs to be sought. I hear of employers who avoid dismissing under-performing employees because they are afraid they will be taken to employment tribunal. Imagine the ongoing financial cost on the employer in having to pay someone who just is not up to the job. However small businesses should not be carrying passengers, they cannot afford to especially when they are trying to grow their business especially during these uncertain economic times. Remember disciplining someone is rife with red tape, it’s a total minefield and if you make a mistake it could cost you thousands of pounds at employment tribunal, so ensure that management are properly trained in HR procedures, their mistakes could cost you dearly.”

Peter Done concludes,

“Remember employment tribunals are fought in the workplace by correctly following HR laws and ensuring you have watertight policies and procedures in place. Let us hope that the Government listen to the concerns of small businesses and finally get to grips with reducing the ridiculous amount of red tape that are imposed on UK entrepreneurs.”

For further reading on employment law read our business advice articles:

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