The FSB has responded to news that the government is considering new rules on temporary workers, striking employees and bank holidays by urging ministers to put the brakes on employment legislation.

There are now 26 acts relating to employment on the statute books.

Britain’s biggest business organisation says small employers desperately need a period of legislative calm to get to grips with recent changes.

The FSB’s 2004 member survey reveals the difficulties posed by employment legislation.

The majority of entrepreneurs see the volume (66 per cent), complexity (59 per cent) and rate of change of employment legislation (56 per cent) as a major obstacle to growth.

And any further regulation – such as those agreed at Labour’s National Policy Forum – could damage labour force flexibility.

The FSB argues that there should be a period of stability in the next parliament to allow employers and employees alike to get to grips with the current rights and responsibilities.

John Walker, FSB Policy Chairman said: “Small businesses employ over 50 per cent of the private sector’s employees, some 12million workers. But most small firms do not have a Personnel Manager or HR Department so any increase in administrative burden can have a direct influence on their ability to create jobs.” 

“Entrepreneurs have large expansion plans, positive forecasts and big ambitions but they are critical of the cumulative impact of employment regulations. They depend on regulatory stability and a flexible workforce, both of which are put at risk with every new piece of legislation.”

Notes to editors:

1.       The FSB is Britain's biggest business organisation with 185,000 members.  It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

2.       The 2004 FSB survey of members is entitled Lifting the Barriers to Growth in UK Small Businesses, and received over 18,000 responses.  An electronic copy of the results can be downloaded from www.fsb.org.uk.

Contacts:

FSB Press Office (ISDN available):

David Bishop: 020 7592 8113 / 07740 076848

Daniel Mazliah: 020 7592 8128 / 07717 861605