A fifth of small-business owners are concerned that they do not understand their employment law obligations, research from the Department for Business, Innovation and Skills (BIS) has revealed.
The survey of 300 small-business owners found that 32 per cent had a firm grasp of employment law, but 20 per cent were anxious about not getting it right. In addition, more than a third felt that employment law regulations were not "relevant" to their business.
Employment Relations Minister, Lord Young, said the results revealed a "knowledge gap" among small firms, and advised businesses to make the most of free information tools such as Business Link - which offers tailored advice to small firms.
"There is a lot of free guidance out there," said a BIS spokesman. "Most small business owners will find that keeping up to date with the legalities of hiring staff is actually easier than they think.
"Running a small business is time consuming, but business owners have to make sure they are legally compliant as far as their HR policies are concerned," he added.
However, a Federation of Small Businesses (FSB) spokesman said that giving free guidance was not enough to support small firms. "Small businesses have to deal with increasing levels of regulation, despite finding most employment law highly complex," he said.
FSB national chairman, John Wright, added that the Government needed to stop introducing new legislation. "All the evidence shows that small businesses can create more wealth and more jobs when employment laws are simple and flexible, yet in 2009 there were over 50 new or altered regulations," he said. "A halt on all changes to business regulation is needed to help strengthen economic recovery."
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