PM Backs SME’s for exemption from EU employment law

Prime Minister David Cameron appears to have shown his support to proposals to exempt small companies from EU employment law, as contained within a recent business-led report.

The report, ‘Cut EU Red Tape’ has been written by six senior UK business leaders and draws on responses from over 100 business organisations.

Mr. Cameron “thought the report was excellent” according to a statement from the PM’s office, noting that small companies play a critical role in driving growth for the country.

However, it was not clear if he supported the specific employment law proposals, though commented that it was important to cut red tape for companies of all sizes.

The report says: “European employment law issues are a key concern for business. We have heard consistently from businesses, in particular SMEs and micro-enterprises, that they are struggling to cope with the unnecessary burdens placed on them by EU laws.”

Specific employment law issues highlighted by the business taskforce include:

  • withdrawing proposals for the extension of rights of pregnant workers
  • keeping the Working Time Directive opt-out
  • not extending certain existing legislation to micro employers

It also argues that the Agency Workers Regulations “should give greater flexibility for individual employers and workers to reach their own arrangements that suit local circumstances and give clarity to companies that they only need to keep limited records”.

Businesses of all sizes might benefit by reduced regulation, since this regulation often leads to complex issues relating to employment law. It is always recommended that employers seek professional advice on all aspects of employment law. For more information, visit the website or contact Lara Murray, Karl Barnes or Charlotte Woolven-Brown.