Edition 56: October 25^th 2007

In this newsletter...

Staff celebrate exam sucess
Senior accountant Sarah Mercer ties the knot
Employment law and Beprofessional
Local business tax plans

News

Complexity of employment law hits small businesses

This week the Scunthorpe Telegraph reported how a significant number of small businesses are not taking on new staff because they find employment law too complex. According to the Federation of Small Businesses (FSB) nearly 80 per cent of small business owners have to deal with increasing levels of employment law by themselves.

The FSB survey reported that 2,826 small firms said small business owners and entrepreneurs were facing an ever-increasing burden of employment law unaided, where 78% deal with employment paperwork themselves and a third do not know where to get Government advice on legislation which affects small businesses. Nearly a third of small business owners said they did not take on new staff because of the complexity of employment law.

The FSA reports that in previous year�s small businesses created more jobs when employment laws were much simpler and flexible. This is evident by the rising numbers of employment tribunal claims from 86,181 in 2004/05 up to a staggering 132,577 in 2006/07.

The FSB said this did not mean less protection for employees - in fact simpler laws would increase the understanding of the laws by small firms and their ability to implement them.

As an example of this complexity in employment laws, recently three council workers lost their jobs after spending too long on Internet site eBay, and another three are facing disciplinary action. It is alleged that the council began to carry out the investigation after officials spent a �significant time� on the Internet. The council�s Internet policy allows employees to use the Internet in their own time, but investigations found an unacceptable level of usage for shopping and entertainment.
One officer was dismissed and two others resigned after they were found to have spent up to two hours a day on the shopping website, eBay. One other member of staff has been given a warning and a further two cases are under investigation.

However, a Unison welfare officer has apparently defended the staff saying that the council should have restricted Internet access and also put in place more outlined and stricter regulations on Internet use.

In essence, every business should have an IT and communications policy in place, as this contains the rules that employees are to be following. The policy will also state the procedures that should be followed if the rules are broken. Having such a policy will remove all ambiguity about what employees may and may not do regarding the Internet, phones etc.
If you have any concerns or queries in the area of recruitment, then please do contact a member of staff here at A.P Robinson & Co. We offer the beprofessional package which helps employers with a whole range of issues, from advertising a job vacancy, to interviewing and accepting candidates. It will also generate contracts of employment, appraisals and forms for paternity, maternity and sick leave. Beprofessional will outline policies, management of staff and reduce any misunderstandings and the fear over Health & Safety legislation whilst ensuring businesses stay legal and staff stay safe.

Bid to change plans for local business tax

Business groups have put together a series of proposals aimed at minimising the impact of a planned supplementary local business rate. Under the scheme, which was announced in the pre-Budget report, shire counties and the Greater London Authority would have the power to charge extra business rates to help fund local infrastructural projects. The Federation of Small Businesses, the British Chambers of Commerce and the Institute of Directors oppose the rate and have urged the government to reconsider its decision. They say that the additional tax would harm local economies and employers. If the proposals are to be introduced, the employers� groups want a series of safeguards that will protect smaller businesses in particular from the effects of the new rate.

Internal News

Press coverage in this weeks Business section of the Grimsby Telegraph:

Congratulations to Sarah Clark, Sarah English and Jodie Osbourne who have all qualified as Chartered Accountants.

Sarah Mercer ties the knot with Mark English

Many happy returns to Sarah and her partner Mark English, who married on 29th September at Bradley Church in Bradley, Grimsby. Both are preparing for their three week honeymoon in New Zealand later early next month