‘No moratorium benefits for small firms’

Small businesses have not benefited from the Government’s moratorium on employment law, according to a new piece of research.

The moratorium, which was introduced in April last year, is also expected to have little impact in 2012 as business owners will only be able to dodge a single rule on equality legislation. John Walker, chairman of the Federation of Small Businesses, said:

“The Government has talked a good game on deregulation. But small firms are still waiting to see action on the ground that matches the rhetoric. “Firms have still had to get to grips with big changes in employment law and the moratorium for micro-firms is still to take effect.”

He has urged the Government to examine employment law from Brussels and not just focus solely on domestic legislation. Alexander Ehmann, head of regulatory affairs at the Institute of Directors, claimed that the Government faces a “credibility gap” unless it finds a way to make the moratorium benefit smaller businesses. He said:

“It’s the Emperor’s New Clothes. The moratorium exists but it hasn’t been applied to anything. Unless it is applied to something it is meaningless.”

Mr Ehmann also pointed out that the scheme could easily be applied to most of the employment laws introduced last year, including the default retirement age.

Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 01895 207892 or email employment@ibblaw.co.uk.