The survey suggests that 40% of employers agree or strongly agree that the demands of employment regulation put them off employing staff. Only 1% of that 40, however, say that dismissal / disciplinary action is the regulation that most puts them off employing staff. Their most serious concerns were:
- Health and safety – 13%
- Maternity / paternity leave – 10%
- Tax – 8%
- National Minimum Wage – 6%
- National insurance – 6%
- Employer’s liability insurance – 5%
- Working time regulations – 5%
- Sickness absence – 5%
- Time off to train – 4%
- Discrimination – 3%
The type of firm most worried about legislation was micro and SMEs, with large firms being most concerned about the right to request flexible working.
On average, 40% of SMEs agree that UK employment regulation is fair and proportionate, rising to 53% of large organisations (250+ employees). However, 35% of sole traders disagreed with this statement.
The findings come at a time when the Government is consulting on proposals that could implement no-fault dismissals for micro companies (defined as those employing fewer than ten people).
