Employing Staff & Why SME's are the Future


Small and medium sized businesses are the biggest employers in the UK employing as they employ 58% of the private sector work force. With spiralling unemployment and recession in the UK the importance of small businesses is more apparent than ever before. Areas with a number of smaller employers are more economically resilient than areas that rely on one large employer.

Every year the number of businesses created in small and medium sized businesses outstrips growth in the small number of large businesses in the UK. If one group really is going to grow and improve the employment situation it is most certainly the million small business employers.


As a small business owner you may be new to employing staff and all that comes with it. You may think it is as straightforward as just hiring and then setting staff to work, however, many small business owners soon realise they do not have enough time or resources to devote to employment issues. The complexity of employment law can make it hard for businesses to keep up with their responsibilities. Such is the ever-changing nature of the law, it can be difficult to know what you should be doing in order to make sure your company is protected.

Employment is an increasingly fast moving and complex area of law. The impact of regular new legislation and developing case law presents a real challenge for employers who want to spend their time focusing on growing their business and developing their people, but often find themselves battling with HR issues and defending claims instead.

Many leading business representatives have warned that small enterprises are over burdened by the weight of the business law they must comply with and that many owner-managers struggle to keep up with the ever changing mountain of legislation. Unfortunately it is imperative that you do because if an employment solicitor representing an employee spots any gaps in your procedures this may result result in a great deal of expense for your business, as you are more likely to lose at an employment tribunal.

New and amended regulations usually come into force on the Common Commencement Dates of April 6 and October 1. However, the Government has recognised the burden that regulations impose on small businesses. The 2011 moratorium on new business regulation has been replaced by the Small and Micro Business Assessment. It assesses all new, proposed regulations and if they are found to have a disproportionate impact on small and micro businesses, they will only be passed if small micro businesses are exempted. Businesses with up to 50 employees qualify for the exemption (previously up to ten employees).


Although opinions will always differ over what is fair and unjust, few would deny that the law has an important responsibility to protect the health and safety of employees, the public and the environment from the worst excesses of business.

In short Business law can protect your business and you need to be armed with the correct information to expand your business and be successful.