13 April 2011 #Employment
We are only just coming up for air following the 6 April employment law changes (see this month`s article) and if recent years are anything to go by, employers will already be bracing themselves for future legal reform.
It is perhaps no surprise then, that the CBI has called on the Government to "think small first" and tackle regulation that prevents private and family-owned businesses from creating jobs and growing their businesses.
According to the CBI, 60% of private and family-owned firms cite employment regulation as a barrier to job creation. The CBI claims that the raft of employment legislation has a disproportionate impact on smaller firms and is requesting the following reforms:
One in, one out
Perhaps fittingly, the Government has this week published a statement under it`s "One In, One Out" strategy of reducing red tape and unnecessary costs for businesses. Under the strategy (which took effect in September 2010), new regulations cannot be brought into force before other regulations are cut.
The Government claims that this policy is achieving its objectives, with only 46 out of 157 intended regulations, scheduled to be imposed between January and June 2011, having been implemented. The Prime Minister has also launched a campaign at the World Economic Forum to bring in a "one in, one out" rule for new European regulations.
It remains to be seen whether the Government`s "One in, One out" strategy and it`s recently published ‘Plan for Growth` document (also aimed at removing red tape) will be enough to satisfy the CBI and small businesses.