Businesses to be affected by sickness ruling, says FSB
April 13th 15:48 Cost Management
Small businesses in the UK that are looking to improve their cost management in the current climate could be among those affected by new rules regarding long-term sick leave.
A recent report from the Federation of Small Businesses (FSB) and ICM revealed that a European Court of Justice ruling under the Working Time Directive will affect the way 71 per cent of businesses go about employment.
Under the ruling, statutory entitlement to paid annual leave will be available to employees suffering from long-term sickness.
According to the study, 17 per cent of firms will be more likely to dismiss staff on long-term sick leave.
A further 38 per cent said they will now be more cautious about employing people with health problems.
John Walker, national chairman of the FSB, said: "It is well known that small firms are the country's key employers and have done all they can to retain their employees and take on new staff throughout the recession.
"However, 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."
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