Employment Regulation Exemptions for Small and Micro Firms Announced

The Government has announced a general moratorium from all new domestic regulations for three years for businesses employing fewer than 10 people, and for genuine new start ups.

Speaking to the Federation of Small Businesses, Mark Prisk MP, Small Business Minister, said

“We want smaller enterprises to be thinking about how to grow their business, not how to deal with the latest request from government. Unless it is about public safety or national security, you should be minding your business, not ours.

“In the meantime, we will also withdraw the proposed extension of the right to request flexible working to parents of 17 year olds. We remain absolutely committed to promoting flexible working – but we know, because you tell us, that you don’t like frequent incremental changes to employment law.”

He confirmed that the Government would continue to exempt companies of fewer than 250 from the Right to Request Time to Train and summarised what the Government had done and was doing to reduce red tape:

  • A comprehensive Employment Law review
  • A reform of employment tribunals.
  • Smaller firms to have lighter audit requirements.
  • A transformation in the approach government takes to regulation with the “One In One Out” system (where one regulation is scrapped for every new rule proposed)
  • An end to the ‘goldplating’ of European rules (over-interpreting EU directives).
  • Sunset clauses built into future regulations so that ineffective rules will die a natural death.
  • A three-year exemption from all new regulation for micro enterprises and start ups.
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