There are concerns that small businesses will adopt a ‘hire and fire’ culture if proposed reforms to employment laws go ahead.
More than 75% of employment lawyers think that small businesses will hire and fire, according to research by Contact Law, the find-a-solicitor service. 67% of the employment lawyers questioned for the survey said the new proposals were not workable and only 8% were in favour of the whole raft of changes.
The government proposes to overhaul the employment tribunal system in the hope of saving employers £40 million every year. It has also called for evidence on whether businesses are restricted by the minimum consultation period, currently 90 days, for collective redundancies.
73% of those surveyed said the reforms will not encourage SMEs to hire more staff, and 63% believe the changes would have no affect on the way small firms treat their employees.
About 33% of respondents think small businesses will lose out on talent if the reforms go ahead because jobseekers will be concerned over job security.
Therese Wallin, a legal expert at Contact Law, said the business secretary’s proposed reforms are causing a lot of debate in legal circles. The industry is backing some of his proposals, but others are not so popular.
Vince Cable has said the changes would not lead to a hire and fire culture, but the majority of lawyers disagree. Rather than helping the small business community, these reforms could adversely affect it and it’s hard to see how they can be implemented without facing a lot of resistance, she added.
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Image: Hidden-Knife-04D0208-2 by Garrett Wade
