Employment law a headache for small businesses

Nearly a third of small businesses are only “vaguely aware” of their legal obligations regarding employment law, a study from the Department of Business, Innovation and Skills has found.

The findings have triggered concern from legal experts as firms could be putting themselves at serious risk if they follow incorrect procedures. The research also showed that a considerable 34% of business owners feel that employment law regulation is not relevant to their business.

Responding to the findings, Petra Wilson, Director of Policy and Research at the Chartered Management Institute (CMI) commented:

“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.”

In April 2009, a survey from the British of Chambers of Commerce (BCC) returned similar results, with 47% of business owners stating that they struggle to navigate their way around key employment legislation.