17-09-2007
SMEs avoid employing staff
Many UK-based small to medium-sized enterprises (SMEs) are averse to taking on staff, it has been claimed.
According to comments made by a representative from the Federation of Small Businesses (FSB), many SMEs avoid employing staff in an effort to escape the associated paperwork and accompanying legislation.
"The amount of legislation that you encounter once you start employing people is quite high," said a representative from the FSB. "A third of our members have told us that they are not taking on any employees because of the employment legislation," he added.
The FSB has also noted that of those SMEs employing staff, 49.3 per cent utilise overdraft facilities for the payment of salaries to new workers. The UK-based FSB was established in 1974 and has a membership base of more than 205,000
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