Tuesday, August 8

EU Employment law is slowing UK growth

In a prominent article in The African Echo, The Federation of Small Businesses (FSB) is reported as highlighting the stress and pressure on small businesses caused by employment legislation. The detailed article deserves emphasising. The Federation’s legal helpline, receives an average of 240 calls a day, or ten an hour, from FSB members struggling with employment law. The FSB, thanks to a dedicated and very professional permanent recruitment team, has grown to almost 200,000 members and it is the UK's largest member based business organisation.
Employment law legislation enquiries have seen an 871% increase in calls as the new requirements begin to hit the small business radar. This is also the case for religious discrimination. New statutory grievance and disciplinary procedures have resulted in a 40% rise in disciplinary enquiries and a 112% increase in grievance calls to the helpline. A large increase in enquiries regarding part-time workers is due to a rise in rights for part-time workers recently. This has led to them being a less attractive option for small firms – a clear example of legislation reducing employment opportunities, especially for vulnerable people such as mothers returning to work and the elderly.
The FSB confirm that recent increases in the amount of employment law is a disincentive to employ people, built in to the sheer weight and complexity of employment law, and it is a serious threat to the UK economy.

This blog has pointed out recently that the representatives of big business have had a higher profile in the UK's MLM than the Federation. One hopes that government ministers read The African Echo and that Europe Minister Geoff Hoon has a word with the right people the next time he is in the 'heart of Europe'.
The FSB is now apt to ask '' what can small businesses do for Europe ?'' Clearly one answer is to reject the vast amount of socially orientated legislation that is derived from 'Europe' (the European Union) which is without doubt grinding down the UK's economic growth; as indeed FSB members are confirming. Now that is a campaigning issue that the FSB should and could very well major on, perhaps sooner rather than later.


The full article can be read on >

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