Temporary workers

79% of respondents stated that granting temporary workers the same rights as permanent staff will seriously impact on the sustainability of smaller firms.

The FPB has been fighting to retain the flexibility that temporary workers provide. FPB member Len Stevens, of Climate Components Ltd based in Kent, summarised the views of the majority of respondents: "Both employees and employers enjoy the flexibility of temporary employment, and any further disincentives will simply mean the destruction of the temporary market to the detriment of both parties."

The European Union (EU) initiative, which will grant temporary workers equal rights in terms of rates of pay, holiday entitlement and other benefits as permanent employees, has been backed by Prime Minister Gordon Brown despite the FPB's lobbying efforts. Employment Ministers of the European Member States have now come to an agreement that the cut-off period for ‘temps' will be 12 weeks. We will be closely monitoring the implementation of this EU Directive into UK law.

Dispute resolution

92% of members agreed that it is important that changes to the dispute resolution process reduce the administrative burden on employers.

Acas, the Advisory, Conciliation and Arbitration Service, has developed a draft code of practice on discipline and grievance, aimed at simplifying the dispute resolution process. We have been consulting our expert advisers on employment legislation and do not agree that the code, in its current form, will decrease the burden on small businesses. It will be, yet again, the larger businesses, with the support of their HR departments, which will be best placed to deal with the new processes.

We are preparing our submission to the consultation on the code of practice and will consult with members of our Employment Member Panel. The code, which is very short, will be beefed up in early 2009 by Acas guidance. We have between now and April 2009 to speak out for our members and ensure the new processes fit their needs.

Pensions

81% of respondents to Referendum think that "administering the Government's proposed ‘Personal Accounts', to be introduced in 2012 with the Pensions Bill, will significantly add to my administrative burden".

The Pensions Bill is currently being read in Parliament and, if ratified, will mean employers will have to make contributions of a minimum of 3% of earnings of jobholders earning between £5,035 and £33,540. The FPB has been lobbying against this move, which we think will not only impose a cost but will also add to the administrative burdens of running a business.

FPB member Spencer Parsons, of Boka Hotel in London, commented on the plans: "Yet more admin from what appears to be paperwork-obsessed government."