FSB: sick rules stopping small firms hiring

New rules on long-term sick leave are stopping almost 75% of small firms from hiring new staff, according to a survey from the Federation of Small Businesses.

A new European ruling allowing employees to accrue annual leave when on sick leave has been criticised by the FSB who believe the regulations are having a detrimental effect on employment in small firms.

A poll of more than 1,400 respondents showed that the ruling will affect the way 71% of businesses employ. Almost 40% will be more careful about taking on new staff with health problems, while a fifth of small firms will less likely to take on any new staff and 17% will be more likely to dismiss staff on long-term sick leave.

The FSB is urging the European Commission to reverse these decisions on the Working Time Directive in order to encourage small firms to take on more staff and help bring the country further onto the road to recovery.

John Walker, FSB chairman, said: "Measures put in place by the European Court of Justice on sick leave are hampering small businesses' ability to do the job at hand and help tackle unemployment - which is at its highest for 17 years."

Fit notes vs sick notes​

Last week the Government introduced the 'fit note' to replace the traditional sick note, with the aim of encouraging a phased return to work for employees who have been ill. An employee's GP will fill out a form advising companies of the tasks employees can carry out, allowing them to return to work earlier.