There has never been a harder time for the owners of small and medium sized business enterprises. It is desperately hard trying to keep your business head above water and when you throw all the extra employment law legislation into the mix, this really can become the final nail in the coffin.
Solicitors who specialise in this area of law are reporting a massive rise in the number of employees that are being forced to pursue an employment tribunal. This is down to the fact that more and more employers are either unaware of these constant amendments in law or are simply forced to hold back on honouring their legal duty.
Recent employment law legislation has all been massively stacked in favour of employees. Be this through amendments to the accrual of holiday pay entitlement to yet more increases in maternity and paternity pay, employers simply cannot cope with these statutory obligations.
Another definite impact of this legislation, which has now gone too far, is that employers will have no other alternative than to cut back on the number of staff on their books. So, whilst many people see these changes as necessary and proportionate to what is required in the work place, they really do need to remember that a fairer balance needs to be found here for the long term.
It is all very well holding employers responsible for breaches of employment law and no doubt this trend will continue to increase, but in a minute there will not be any people left that are brave enough to run an SME in the first place.