Small Business - SMEs reject EC employee plan
European Commission plans to force small business directors to consult employees about company plans will signi^cantly increase their administrative burden, claims ACCA.
The commission is preparing a new law as part of the Social Chapter which would compel all but the smallest enterprises to consult employees about the content and direction of their business plans. The approach is common practice on the continent and the EC is now keen to bring the UK into line.
But Chris Christou, chairman of ACCA?s small business committee, warned of extra red tape. ?We are very strongly in favour of employee consultation, but this proposal will create additional burdens for the small business sector,? Christou said.
He added: ?Many SMEs have been created through market insight and the dedication of their directors. For comparatively small concerns, such as those employing between 50 and 200 people, [the proposal] is another constraint which could impede the energy and vitality of enterprise.?
David Hands of the Federation of Small Business said: ?Larger companies want to impose these regulations across the board in order to get rid of their smaller competition, and it is our fear that these directives could be stretched down to companies with under 50 employees.?
* Converting accounting and stock control systems to handle the euro will cost SMEs up to #6bn, claims a Lloyds TSB survey. The average bill for each of the UK?s small companies will be almost #2,000.
