Red tape puts sole traders off hiring staff

Just one in five staff-less businesses plan to take on employees over the coming months

80% of businesses without employees have no plans to hire in the near future, according to new research from Intuit.

The research, based on responses from more than 500 entrepreneurs, also reveals that over one-third of current employers are unwilling to increase their staff base.

The study’s responses suggest that regulation is a key deterrent to prospective employers, with over a quarter of respondents saying they are deterred from hiring staff by the administrative burden involved.

Furthermore, a third of respondents said that online legal assistance with employment and health and safety documentation would encourage them to take on new staff over the coming months.

Sean Morgan, a key contributor to the study, said: “At present there are a number of major hurdles small businesses or sole traders face, including unfair dismissal, maternity leave and discrimination laws.

“Current employment legislation makes it very scary for small businesses to employ people when otherwise they would love to.”

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