Help for SME's struggling with employment law
The Forum of Private Business (FPB) has published an 'Employment Guide' to help small businesses comply with employment law, which from 1 October sees a number of legal changes. From that date business owners will be expected to cope amendments related to employment, such as increases in the National Minimum Wage, and an increase in the cost of redundancy.
According to a recent FPB survey, complying with employment legislation is the costliest administrative burden faced by small businesses in the UK, totalling almost ?2.4bn per year. New figures from the FPB's members' helpline service show that more than one in three of all calls in August 2009 related to employment matters - more than any other issue.
"Many firms are worried that they are not following the correct redundancy procedures when they have to lay off staff," said FPB policy representative, Matt Goodman. "Looking ahead to October's one-off increase in the weekly wage limit used to calculate redundancy payments, they are also concerned that it is becoming a more expensive process."
He added: "There is a knock-on effect. The increase will also affect other statutory compensation payments, including unfair dismissal awards, compensation for non-compliance with flexible working procedures and compensation should a statement of employment particulars not be provided to an employee."
Goodman is urging companies to put in place watertight procedures following the new FPB Employment Guide, which is updated annually and contains guidance on every aspect of employment, including practical help on complying with the law.