Impact of the Act on Small Businesses

The provisions in the Act will help to level the playing field by putting small and large firms on an equal footing. The Small Business Council and Small Business Service have been closely involved in the development of these proposals.

  • The Act thought “small first” in terms of the way it implements paid paternity and adoption leave. It will ease the cash flow, reducing the burden by allowing employers to claim money in advance for Statutory Maternity, Paternity and Adoption Pay payments and simplify procedures for small employers.
     
  • Dispute resolution measures are helpful to small firms and will ease the pressures of tribunal claims by encouraging better communications in the workplace to prevent disputes escalating into tribunal applications. In most cases employees will be required to raise their grievances in the workplace before making an employment tribunal application. The introduction of dispute management procedures provides clarity on how workplace disputes should be handled. The procedures recognise the needs of small firms.
     
  • Clear and user-friendly guidance available to all. Acas advisory work with small business is being stepped up and Acas, SBS and other advice agencies will work together to deliver support service.