Employment law 'is confusing some SME owners'

04/03/2010

Owners of small and medium-sized enterprises (SMEs) have been advised to seek help if they are unsure about employment law following the results of a new survey.

Research carried out by the Department for Business, Innovation and Skills found that 28 per cent of SME owners are only "vaguely aware" of their legal duties in the workplace.

A further 34 per cent reported believing that employment law obligations are not relevant to them, while a quarter said they do not always keep up with changes to legal requirements - potentially putting them at risk of prosecution.

Speaking to Business Weekly, Ross Strowger, a partner with the law firm Kester Cunningham John, said it was essential for business owners to realise that implementing employment law is a key responsibility.

"SMEs can live in a state of blissful ignorance as they focus on the bottom line," said Mr Strowger.

"Unfortunately, when a claim arises it can place smaller businesses in real financial hardship and, for some, it can threaten their solvency and continued trading".

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Posted by Tom Barnett