Britain’s stringent employment laws are strangling small businesses such as restaurants and hotels, according to The Forum of Private Business (FPB).
The pressure group claimed that this month’s introduction of even tougher employment laws, including changes to sex discrimination regulations, mean a system that already hits independents disproportionately will now get worse.
FPB spokesman Rex Garratt said: “Tribunals are already bleeding businesses dry because they are so heavily loaded in favour of employees. Last year tribunals paid out £20m to employees.”
He argued small businesses such as restaurants, hotels and guest houses had neither the time nor the money to fight at tribunal, and instead had to settle privately irrespective of their chances of winning.
The claim was backed up by a recent CBI survey which found that all of companies surveyed with less than 50 employees settled before it reached a tribunal.
However, John Murphy employment solicitor at George Green solicitors, said: “The perception that things are likely to get worse for independents may not be accurate, as the Government is increasingly putting emphasis on resolving grievances internally rather than going straight to tribunal.”
The Government has said it will look at simplifying the tribunal system.
By Chris Druce
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