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The Forum of Private Business (FPB) has warned that changes to rights for new
parents are amongst the latest regulations to be heaped on small firms in
October.
New fire responsibilities and age discrimination laws come into force next
month, as well as another increase in the minimum wage.
Chief executive of the FPB, Nick Goulding, is calling for positive action to cut
red tape’s strangle hold on smaller businesses.
He explained: "In October, we will see a another wave of extra regulations hit
smaller businesses, which are already struggling to keep their heads above the
water."
"There will be extra responsibilities for fire safety, the need to revise
practices to avoid costly age discrimination claims, the minimum wage is set to
increase and changes to maternity rights could leave small firms holding the
baby," he added.
Changes in maternity regulations will come into force for parents who expect to
be giving birth to or adopting a child from 1 April 2007.
They will mean that, from 1 October 2006, small firms with fewer than five
employees will no longer be exempt from the law, which says that employers must
hold a position or a similar job open until the employee returns to work from
their leave. Employees will also not have to serve a qualifying period for
extended leave.
Mr Goulding believes that will put small firms in a vulnerable position, adding:
"This could have serious consequences for small businesses.
"There is a danger that firms will be left with the costly and difficult task of
replacing staff who have entered into the job, knowing they will be taking
extended leave very early in their employment."
Source:
RedAlert
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