Many small business executives do not think employment law legislation is applicable to their operations, new government research has concluded.
According to a study conducted by the Department for Business, Innovation and Skills, 34 per cent of the 300 small company owners questioned consider obligations in this area to be irrelevant to what they do.
Lord Young, employment relations minister, said that this is an issue that can be challenging for people running a company, but added that it "need not be".
The survey also found that 20 per cent understand their responsibilities in this area but are not sure if they are taking the correct approach to handling them, while 32 per cent are confident that they deal with employment law issues in the correct manner.
"This study helps us identify the knowledge gap and the reasons behind this, to enable us to continue to improve the advice and support we offer," Lord Young remarked, adding that small firms can access free help on the matter using the government's Business Link website.
A quarter of respondents said they do not keep up to date with changes in regulations, however nearly half (42 per cent) stated that ensuring they are aware of updates is important to them.
Director of policy and research for the Chartered Management institute Petra Wilton commented that managers and executives need to be aware that "managing employment law is a key responsibility".
She added that it is "essential" they make sure they take advantage of the information that is available to them.
Employment law may become an issue for business leaders who are considering making changes to their working conditions given the present economic climate.
Last week, Lewis Campbell, of Keep Britain Working said it is important any alterations that are made are introduced at all levels.
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