The number of workers taking their employers to tribunal has rocketed over the past few years, with the burden of complex employment laws on small businesses being blamed.
Research from the Tribunals Service shows that figures have soared from around 86,000 claims in 2004/05 to over 132,000 claims within the last 12 months – an increase of almost 65%.
A report of almost 3,000 small businesses, conducted by the Federation of Small Businesses (FSB) found that four out of five UK entrepreneurs have to deal with the increasing complexities of employment law by themselves, suggesting that the two issues are interlinked.
Additionally, findings showed that a third of business owners did not know where to get government advice on legislation, while a similar amount said that they were putting off employing new staff due to the complexities of employment law.
Alan Tyrell, the FSB’s employment chairman said that the results were due to current employment law being “unacceptable”.
“Small businesses do so much for the UK economy and local communities,” he said. “The fact that so many of them are deciding not to employ people demonstrates the burden of employment law.”
He criticised the government for producing the legislation and said that the laws should be “realistic, practical and understandable”.
“The relentless, one-size-fits-all approach to employment law has got to stop,” he added.
“All the evidence shows that small businesses can create more wealth and more jobs when employment laws are simple and flexible.”
© Crimson Business Ltd. 2007
