Small firms worried over employment law

A third of small businesses believe employment law is not relevant to their business, new research from the Department for Business has revealed.

The study found a significant gap between some small businesses and their confidence in employment law. While a third said they had a firm grasp on the legalities of employing staff, a fifth worry they are not getting it right.

Commenting on the findings, Petra Wilton, director of policy and research at the Chartered Management Institute, said:

“These findings show that small business bosses take very different approaches to the ways in which they manage their obligations. What really matters is for business leaders to realise that managing employment law is a key responsibility of theirs. 

“No one is asking them to be an expert, but it is essential that they seek out and use appropriate information so that informed decisions can be reached”.

The report also found variations in how male and female small business owners manage their employer obligations.

Some 54% of women said they felt it was important to keep on top of HR compared to 38% of men. In addition, over a quarter of female bosses worry they are not fully up to date with legislation compared to only 17% male business owners.

© Crimson Business Ltd. 2010