Do the Complexities of Employment Law Put You Off Taking on Staff?

33670ipenebc2suIf your answer is yes then you are not alone as a recent British Chamber of Commerce survey highlighted the various concerns raised by sole traders when it comes to employing staff. Issues raised that have been putting sole traders off hiring included dismissal processes, sickness absences, equality legislation, statutory payments and flexible working. Some were worried about National Insurance Contributions, while unaware of the National Insurance 'holiday' for startups, highlighting the need by businesses to fully investigate the assistance that is on offer from the government. For example, did you know about the exemption to micro businesses to new domestic legislation for three years from April of this year?

 

Clearly the issues revolve not just around the actual hiring, but also the long-term costs and management of the staff and not surprisingly many sole traders have been turning to freelancers to fill the gap. It seems yet again the burden of red tape is preventing many small businesses from taking the next step to growing their businesses. Will the Red Tape Challenge bring any benefit to this area of legislation we wonder?

 

Image courtesy: Michal Marcol / FreeDigitalPhotos.net

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Response to FT article about changes to pension contributions


BlogpensionWhilst the announcement about pensions was really nothing new yesterday, it seems to have grabbed the headlines much more than when Labour talked about it.

Most commentators recognise that something needs to be done about pensions, but changing people's attitude to saving for retirement is difficult. Dare I say it, but this 'enforced' pension contribution is probably a step in the right direction.

However, with the majority of the population employed by the micro and small business sector, the burden upon employers in terms of administration and contribution cost is therefore significant. And, coupled with the possible change in maternity pay legislation, will all these additional costs prove a deterrent for micro and small businesses to expand and therefore fuel the economy?
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