Government to ease SMEs’ employment-law burden

By relaxing cumbersome employment law, David Cameron hopes to boost the private sector by creating a climate in which it [the private sector] can grow and develop”.

The changes to employment law will make it easier for employers to sack under-performing staff members without the threat of being hauled to an employment tribunal.

The shake-up could also see a change in statutory sick pay terms.

This comes as leaders from top UK firms such as Asda, John Lewis, Marks and Spencer and Land Rover join David Cameron at Downing Street today to discuss the government’s role in enabling “employers to get Britain working again”.

David Cameron describes the Coalition’s job-creation focus as the “most pro-business, pro-growth, pro-jobs agenda ever unleashed by a government”.

But will it be enough? David Whiscombe, partner at BKL Tax, is understandably sceptical: “Employment law is a start, but only a start. Small businesses are over-regulated in many ways, including health and safety, planning, consumer protection and taxation compliance as well as employment.

“We have seen an ‘Office of Tax Simplification’ – much more desirable would be an ‘Office of Small Business De-Regulation’.”

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