Poor understanding of HR law putting SMEs at risk, says
Monahans Business Bureau
Primary research commissioned byMonahans Business Bureau reveals that small and medium enterprises (SMEs) across the South West of England do not fully understand changing employment legislation.
The study was conducted by MHA, the UK association of accountancy and business advisory firms, in the second quarter of 2013. The sample comprised of organisations who have between 3 and 120 employees in themanufacturing, technology, distribution, charity and education sectors.
Respondents were asked what impact developments in HR legislation would have on their employee relations and their wider businesses. Among the findings were some statistics that the government may find alarming:
74% were unaware that the amount of leave parents can take unpaid has risen from 13 to 18 weeks
78% believed that changes in employment law had no impact on their business in the last 12 months
63% don't believe that changes in employment legislation in the coming 12 months will impact on their business
91% were not aware that they can contribute to the debate about changes in employment legislation. Only 2.25% that were aware did so using forums as their platform
52% were unaware of proposals permitting employers to have "protected conversations" with employees with a view to terminating employment
The government wants to encourage businesses to comment on red tape, with employment legislation seen as a key topic. However, as, the study showed, more than nine out of ten businesses do not feel able to engage.
Commenting on the research findings, Peta Fry, HR Director of Monahans, said, "It is clear that communication with SMEs regarding changes in employment legislation is an issue. We understand that it's hard for businesses to keep up to date with legislation changes and identify what is relevant to them. That's why, at Monahans, we issue quarterly newsletters and ad-hoc alerts, informing clients of changes in legislation that apply to their business."
Monahans is one of the largest independent chartered accountancy groups in the west of England. The firm, which also incorporates Monahans Financial Services and Monahans Accountancy Services, provides a full range of accountancy, tax, investment and insurance services to businesses and private individuals.
Monahans has offices in Bath, Chippenham, Glastonbury, Swindon and Trowbridge.
For further information on Monahans Business Bureau visitwww.monahansbusinessbureau.co.ukor call 0845 319 3030.
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