The government will reduce workers rights to request training and offer a three year moratorium on new regulations for small businesses in an effort to boost the sector ahead of next weeks ‘growth Budget’.
Business Secretary Vice Cable is understood to be telling the Federation of Small Business today that regulatory demands emanating from Whitehall will be eased.
Mr. Cable is expected to announce that start-ups with less than 10 employees will be exempt from new domestic regulations for three years and will repeal laws that allow parents with children below the age of 17 the right to request for flexible working hours. Firms employing fewer than 250 people will not be required to provide training outside work and workers rights will be curbed.
Small and Medium Enterprises (SMEs) employ half of the total workforce and the government is depending on them to turnaround the economy and create new jobs as state employments are slashed.
However, business leaders argue that Mr. Cable has not been bold enough. The CBI employers’ organisation, in a report published today has urged the government to give SME’s the right to review flexible working conditions annually and agree on return dates of employees on maternity leave.
Successive governments have struggled with reducing the red tapes and changing labour laws is part of a wider effort by the present coalition government in that direction.
The business secretary plans to review 21,000 existing laws and has requested industries to help it identify unnecessary ones. However, no target has been set on scrapping the legislations. The government will audit all new regulations to determine their relevance and effectiveness.