SMEs struggling with employment law, study shows

Small and medium-sized enterprises (SMEs) struggle to get to grips with employment law issues, according to one organisation.

The Forum of Private Business (FPB) stated that more than one in three calls received by the body's members' helpline relate to these matters.

Redundancy questions comprise 14% of the total amount, something FPB Policy Representative Matt Goodman pointed out as a significant concern for a number of companies.

He remarked: "Many firms are worried that they are not following the correct redundancy procedures when they have to lay off staff."

Calls seeking help on employment could be due to rise following legal changes scheduled for 1 October, which will see the national minimum wage go up, as well as a hike in redundancy costs.

The FPB revealed that legislation for recruitment policies is a company's most expensive administrative burden.

One in three members of the Federation of Small Businesses polled by the body admitted they think the services provided by Jobcentre Plus are ineffective to some degree.