Too much red tape is preventing small firms from taking on staff, according to research from the European Commission.
The study found that more than 10% of one-person enterprises complain that red tape, including tax and dismissal protection rules is the main issue from stopping them from hiring employees. The research found that firms spend up to 3 days researching and complying with recruitment requirements, such as carrying out health checks and registering with various public institutions. Once employed, nine hours are taken up in administration for each employee.
Recommendations of the report include reduced and simplified recruitment regulations, and a reduction in non-labour costs for small businesses to help with the price of training.
Our view
We agree. Employees need protecting from abuse by employers but likewise employers need protection from employees who abuse the system!