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Business loans to help with new employment law
Reported on Fri, 30 Jun 2006
Small and medium sized enterprises (SMEs) are concerned over the new employment laws due to be implemented in October, but a business loan could help if the cost of recruitment escalates.
Larger companies are more confident than smaller ones that the anti-age discrimination laws will improve staff retention and increase the labour market, according to statistics released by Allianz Cornhill.
Around 20 per cent of SMEs believe that the new employment legislation will reduce recruitment costs and 26 per cent believe that the changes will allow them access to more skilled employees – in contrast to 42 and 45 per cent of larger firms respectively.
Ben Cottam from the Federation of Small Businesses, writing in Welsh newspaper the Western Mail, commented on the potential problems faced by smaller companies.
"The last two years have seen unprecedented rapid fire changes in employment law. Keeping up with it all can be an exhausting process, especially for SMEs."
The new anti-age discrimination laws will mean changes to maternity, paternity and redundancy pay age restrictions.
Small businesses worried about new employment laws could take out a business loan to aid financial development that could ease the transition into a new way of recruitment.
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