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More firms expected to shed staff in 2012

More small firms are expected to shed staff in the New Year, the Federation of Small Businesses (FSB) has claimed. New figures from the organisation show that 6.5 per cent of small enterprises will lay off workers during the first three months of 2012, the highest level seen since the survey began, indicating that businesses [...]

More small firms are expected to shed staff in the New Year, the Federation of Small Businesses (FSB) has claimed. New figures from the organisation show that 6.5 per cent of small enterprises will lay off workers during the first three months of 2012, the highest level seen since the survey began, indicating that businesses already paying for essential commitments, such as Staveley Head liability insurance, are struggling to find the funds to pay staff.

In response to the figures, the FSB has urged the government to put measures in place to ease conditions for small firms. These include exempting the smallest businesses from the extension of the right to request flexible working and from certain proposals on pay audits, and a reform of the maternity and paternity leave system in the future.

John Walker, national chairman of the FSB, said there is no need for firms to feel under pressure as long as the government responds adequately to their needs. “The government has a good chance to make a real difference to the livelihoods of small firms when it reports on the Modern Workplaces consultation,” he said. “Tinkering and increasing existing employment laws will only serve to worsen this situation.”