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Red tape 'restricting small firms' hiring intentions'

Red tape 'restricting small firms' hiring intentions'

Excessive red tape in the employment law field is one of the primary reasons many smaller companies are finding it tough to recruit new members of staff in the wake of the recession, an expert has said.

According to research conducted by the British Chambers of Commerce (BCC), 39 per cent of all micro-firms - companies employing ten or fewer workers - find the current rules on dismissal are either "extremely or fairly burdensome".

In addition, less than half - 40 per cent - of these organisations feel they have been well-informed with regard to upcoming alterations to the country's employment legislation.

Dr Adam Marshall, director of policy at the BCC, commented that such restrictive rules are deterring them from taking on new workers as they attempt to grow in the wake of the downturn.

This comes after Gillian Econopouly, head of policy at the Recruitment and Employment Confederation, urged the administration to extend flexible working, as well as cut the amount of red tape faced by firms.

Contact our employment solicitors on 0800 916 9060 or email if you would like advice on any employment matter

Posted by Chris Stevenson