A leading small business group, Your Business Community, has warned that the new Employment Rights Bill risks overlooking the realities faced by the UK’s smallest employers.
The legislation has been widely welcomed for strengthening protections for employees. However, Your Business Community says the reforms must also recognise the huge differences between large organisations and the millions of microbusinesses operating across the country.
Most UK businesses employ fewer than ten people, and many are run by founders who eventually take on their first member of staff. In fact, around 95% of UK employers fall into this category, meaning microbusinesses represent the backbone of the nation’s economy. Unlike large employers, these firms typically have no HR departments, legal teams or dedicated compliance staff.
Your Business Community is concerned that applying the same regulatory framework to a business with one employee as to one employing hundreds risks placing disproportionate burdens on the smallest employers.
Ted Wigzell, from Your Business Community, said:
“Fair treatment at work matters, and most small business owners support sensible protections for employees. But policy also needs to recognise the realities of running a microbusiness. A company employing hundreds of people has HR teams, legal departments and internal systems to manage complex employment rules whereas a business with one employee does not. Treating a micro-employer in exactly the same way as a large corporation risks placing disproportionate pressure on the very businesses that create jobs in their communities.
Most small business owners want to grow and take on staff, but if regulation becomes too complex or risky it may discourage those crucial first hires. Employment reform should strengthen worker protections while also supporting the smallest businesses that drive local economies.”
Your Business Community is calling on policymakers to ensure that employment reforms are proportionate and recognise the structure of the UK business community, where the majority of employers are microbusinesses.
ENDS
Notes to editors
Your Business Community supports small businesses, sole traders and micro-employers across the UK, providing guidance, representation and advocacy on the issues affecting the smallest firms.