Friday, September 02, 2011

How red tape is slowly strangling small business

Here an example from the real world:

A friend of mine's small company (<10 employees) has recently been recruiting.

They have been advised that you can now longer ask anyone about their sickness or attendance records, due to recently legislation.

Therefore they run the risk of not only losing the services of a key employee due to sickness, but also have the life blood of the company drained at the same time as income is lost. They are not allowed to do anything about the risk at interview time.

Their answer ? Sick pay is being cut to its legal minimum, as they don't think they can carry anything else.

These sort of regulations may be fine in civil service offices where people like "Civil Serf" and the former head of the CBI say you could lose half the staff and things would work better.

But its another nail in the private sector's coffin.

1 comment:

vircantium said...

On top of which you have now to pay 13.8% extra for the privilege of employing them ... which ultimately hits the employee as well, as does NEST, and whatever other 'employment protection' the EU throws in as well. More maternity benefits? Way to make young women less employable ...

I'm self-employed too, and will do avoid directly employing anyone for as long as I possibly can.