SMEs in the dark over paternity rules exemption

25/03/2011

Following George Osborne's Budget this week it has left many small and medium-sized enterprises (SMEs) in the dark regarding paternity rules that come into force from April, according to uSwitchforbusiness.com.

The Make It Cheaper partner revealed that plans to make small businesses of up to ten employees exempt from new legislation for the next three years has left many confused on whether the paternity rules will apply to them.

Research found that nearly 40 per cent of SME owners believe that the new rules, which come into effect on April 3rd, should let small businesses be exempt from the paternity law.

However, one fifth of SME employers think that the new legislation should apply equally to all small firms.

James Constant, director of uSwitchforbusiness.com, said: "The government needs to clarify this point as a matter of urgency as many small business owners will have been left scratching their heads.

"If the exemption doesn't include the new paternity leave regulations then that will be a blow," he added.

T-Mobile recently conducted research which found 55 per cent of SMEs believe they are in a stronger place to succeed during 2011, and with "belief and ambition", entrepreneur Geraldine Brooks believes the UK's growth is optimistic.

However, she noted that from starting up a company it seemed that many of her counterparts feel that the challenges to success have been outweighing the potential business opportunities.

Now, following the introduction of new paternity leave rules only a minority - one per cent - of SME owners believes it will be positive for their business.

Furthermore, a third of SMEs think the rulings are uncompetitive as employers said they would have to think twice about the staff they would hire.

The director at uSwichforbusiness.com has called for the chancellor to address the confusion regarding the legislation with many SMEs facing tough trading conditions and the growing need for them to keep an eye on their costs and overheads.

Whereas Martin Lyle, director of SME at T-Mobile, commended the government on its promise to reduce corporation tax and increase credit available to small business owners, which could ease the pain points and provide optimism and growth in the coming months.

Posetd by Emma Noble