Employment law changes trouble businesses

by Rachel Crook

Small firms may have difficulty recruiting more staff due to recent changes in employment law, it has been argued.

The Forum for Private Business (FPB) has argued that the minimum wage is posing a problem for employers not because of its introduction a decade ago, but because it has risen by 60 per cent during that time.

Spokesman Phil McCabe said the recent increase in the minimum wage went against the FPB's pre-budget submission to chancellor Alistair Darling.

He remarked: "The danger is that these measures designed to protect employees, which heap more costs on to small businesses, are actually acting as a barrier to employment."

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The Department for Business, Enterprise and Regulatory Reform announced the rise in the minimum wage earlier this month.

It revealed that from October the rate for those aged 22 and over will rise from £5.73 an hour to £5.80.

Those aged between 18 and 21 will see the hourly rate increase from £4.77 to £4.83, while those aged 16 or 17 will see it change from £3.53 to £3.57.

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Published on: May 26, 2009

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