Business News
New rules on long term sickness prevents small firms from hiring new staff
Figures from an FSB-ICM poll show that almost three quarters of small businesses are being prevented from recruiting new staff due to new rulings on long term sickness absence.
New rules on long term sickness are stopping almost three quarters of small businesses from employing new staff, figures from a new FSB-ICM poll have shown.
A European Court of Justice ruling under the Working Time Directive means that the statutory entitlement paid to annual leave will continue during long term sickness leave. The FSB-ICM poll of more than 1,400 businesses showed that the new ruling will affect the way that 71% of them recruit.
Of the 1,400 businesses polled, around 38% outlined they would be more cautious about taking on new staff with health problems and 17% saying they would be more likely to dismiss staff on long term sickness leave. At a time of already record unemployment levels, the FSB is concerned that this ruling will have a detrimental effect on employment in small businesses across the UK.
John Walker, the National Chairman for the FSB commented: "Small businesses understand the need for good health in the workplace and are like a family, knowing and understanding the needs of their staff. But these FSB-ICM figures show that the changes in the law on sick leave are hampering employment opportunities to get long-term unemployed back into work. The European Commission must look at the measures on sick leave while reviewing the Working Time Directive and ensure these are rewritten so that sick leave is actually classed as sick leave so that small firms have the best conditions to take on more staff and help pull the economy back onto the road to recovery."
As the debate on the Working Time Directive reopens, the FSB is urging the European Commission to review these rulings and ensure the law is rewriting to reverse these decisions, in the hope that it will encourage smaller businesses to take on more staff and help the country take further steps on the road to economic recovery.
