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Seasonal Affective Disorder

Is current UK employment law bad for small business?

New market research by Citrus HR has revealed that Britain’s employment laws could be damaging small business. Only 25% of respondents asked claimed that Employment Law was acceptable in its present state, with a lack of understanding leaving them at risk of making serious errors, which could result in financial penalties!

With employment laws changing frequently, 75% of respondents said that keeping up with legislation was a major drain on their time, even though they risk unwittingly breaking the law if they don’t!

The report also found that up to 30% of employers worryingly are unaware of what the current National Minimum Wage is, which can incur fines as high as £20,000 if not paid to employee. More worrying still, 18% didn’t know which countries are in the EU, meaning they may not have checked whether new workers are eligible to work in the UK.

Working out holiday for staff on part-time contracts was highlighted as a particularly difficult process, with small businesses forced to work out the exact hours each employee has worked over the last 12 to 13 weeks.

Many respondents said they found it hard to keep track of the hours worked by flexible workers in order to track their holiday entitlement, compared to larger companies that employ dedicated HR staff to manage the task.

The fact that you aren’t allowed to pay people for unused holiday unless they leave was listed as the law employers most want to change at 37%, with 29% wanting the removal of the compulsory retirement age. 40% of those surveyed said they did not use HR support, with 45% of that number stating they are too small to need it – and of those not using HR support, 50% claimed they didn’t because they have never had to. 36% of respondents said that they are not using HR support because it is too expensive.

We provide professional employment law services to both employers and employees, so if you want any advice of guidance please do not hesitate to give us a call.