Nearly 80% of small businesses owners are having to deal with increasing levels of employment law by themselves, according to a new Federation of Small Businesses (FSB) report.

The survey of 2,826 small firms showed that 78% of small businesses deal with employment paperwork themselves and a third do not know where to get government advice on legislation that affects small businesses. It found 32% of small business owners said that they didn't take on new staff because of the complexity of employment law.

Alan Tyrrell, FSB employment chairman, says: “The fact of the matter is that it's the government that is producing so much employment legislation and it's the government that should be taking responsibility for ensuring that laws are realistic, practical and understandable.

“The relentless, one-size-fits-all approach to employment law has got to stop. All the evidence shows that small businesses can create more wealth and more jobs when employment laws are simple and flexible.”

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