The Live Wire



Press Release

Growing problems with employment law hit small firms

2 April 2006

New figures from the Federation of Small Businesses (FSB) show that employers are finding it increasingly hard to deal with employment legislation.

The figures, released today, analyse the calls to the FSB’s free legal helpline on employment issues during 2005.

The figures show an increase of nearly 30% in the number of calls in 2005 compared to 2004, up from 55,036 to 70,943. As in the previous year, disciplinary procedures are the subject of the most calls.

Of the major issues raised the largest increases were on dismissal (174% increase – from 2771 calls to 7583) and grievances (118% increase – from 1122 to 2442).

The total number of calls to Abbey Legal from FSB members on all issues was 152,280, up from 141,471 in 2004. This is a rise of 8%.

Sandy Harris, FSB Members Services Chairman, said:

“There are at least 26 Acts of Parliament on employment issues and it is tough for small firms to deal with all their requirements, as these figures show.

“Our members want to protect their staff, their most important asset. They need assistance from the Government to do that by simplifying the rules and reducing the burden of compliance.

“We do not want to repeal or reduce all legal safeguards for employees. But without a simplification of employment law small firms’ growth will continue to be stifled. If the Government wishes to achieve its aims for future economic prosperity then it should take its foot off the pedal on employment legislation.”

The full breakdown of the figures is as follows:

FSB analysis of employment calls for 2005

FSB Legal helpline statistics

Total Calls

% increase / decrease

2005

2004

Legal Employment

Age Discrimination

36

30

20%

Abbey Legal Services Consultancy

114

19

500%

Care Standards Issues

85

31

174%

Children & Young Persons

184

241

-24%

Constructive dismissal

989

743

33%

Contracts of Employment

8620

7293

18%

Data Protection

129

71

82%

Directors

110

371

-70%

Disability Discrimination

1484

1069

39%

Disciplinary Action

13264

11429

16%

Dismissal

7583

2771

174%

Employers Liability

736

375

96%

Employment Status

690

1281

-46%

Equal Pay

33

40

18%

ET Claims and Procedures

1293

1563

-17%

Fixed Term Contracts

55

49

12%

Flexible Working

243

126

93%

General

1552

4948

-69%

Grievances

2442

1122

118%

Health & Safety

477

600

21%

Holiday Queries

2164

2093

3%

Immigration and Work Permits

213

148

44%

Incapacity

3745

3079

22%

Information and Consultation

87

202

-57%

Lay-Offs

401

236

70%

Left Message

7209

Maternity

1745

1499

16%

Minimum Wage

423

461

-8%

Mobility

2

6

-67%

New Legislation

71

188

-62%

Overseas Based Employees

8

5

60%

Parental Leave and Family

178

268

-34%

Part Time Workers

100

84

19%

Paternity and Adoption Leave

236

118

100%

Pensions

70

59

19%

Performance Reviews

604

318

90%

Race Discrimination

62

96

-35%

Recruitment

149

64

133%

Redundancy

7959

5461

46%

References

228

218

5%

Religious Discrimination

12

8

50%

Restrictive Covenants

220

161

37%

Retirement

178

78

128%

Service Agreements

0

4

0%

Sex Discrimination

280

341

-18%

Sexual orientation discrimination

9

11

-18%

SSP

1453

1600

-9%

Temporary and Agency Workers

51

12

325%

Trade Unions

24

19

26%

TUPE

1008

1065

-5%

Unfair Dismissal

315

1094

-71%

Wages Claims

631

589

7%

Work Permits

0

4

0%

Working Time Regulations

860

730

18%

Wrongful Dismissal

129

545

-76%

Total

70943

55036

28.9%



Press releases, papers and documents published on this page are the intellectual property of an organisation unrelated to Central Lobby. We promote their parliamentary and political campaigning activities as they are subscribers to the Central Lobby service.

As such, Central Lobby does not edit, endorse, or attempt to balance the opinions expressed on this page. The content of press releases and other such types of content are the responsibility of the originating organisation.

Federation of Small Businesses

Federation of Small Businesses

More from Dods

© Dods Parliamentary Communications Ltd