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News Release from: The Forum of Private Business | Subject: Survey on extra holidays
Edited by the Buildingtalk Editorial
Team on 25 August 2006
Small firms unhappy with plans for extra
holidays
Majority of small firms unhappy with plans for extra holidays, says survey by The Forum of Private Business (FPB).
A survey of smaller businesses shows that almost 6 out of 10 do not agree with the Government's proposals to increase annual statutory holiday entitlements from 20 to 28 days, including the bank holidays or time off in lieu The Forum of Private Business (FPB) surveyed 1,500 of the 25,000 businesses it represents and found that those responding that oppose the proposals cited increased costs, loss of key staff, difficulties in rostering and increased administration as their main concerns
This article was originally published on Buildingtalk on 7 Aug 2006 at 8.00am (UK)
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However, while 57% disagree with the Government, 41% approved of the plans.
It is likely that most of these firms were among those (46%) who already give 28 days of annual holiday to their staff.
In response to the question of whether employers should be able to 'buy out' the extra holidays, 62% said that it should be possible for all or some of the additional days.
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However, 78% said this should only be done by 'mutual agreement', with just 12% disagreeing.
Nick Goulding, the FPB's Chief Executive, said that the Government's proposals would affect different firms in different ways.
"While the cost across the economy as a whole may not be so great, given that many employers provide this entitlement anyway, the cost on some individual firms will be significant." Samantha Bevan, owner of the Anchorstone nursing home in Farnham, for people with dementia, pointed out that regulations stipulate that she always has to have a certain number of staff on duty.
If the holiday proposals were implemented, "fees will have to go up".
"We would have to pay for the extra holiday days and also the cover".
Pauline Birdsall, a director of forwarding freight company, Key Air and Sea, described the proposals as "very positive".
"Twenty days, including the bank holidays, is not enough".
"I would like to see more people brought into line".
Mrs Birdsall said she already gives her six employees 28 days' holiday a year.
But she was opposed to the idea that the extra entitlements could be 'bought out', as this would "defeat the objective".
Mrs Birdsall added that the idea of phasing the change in over two years would be "far more bother than anyone wants".
Mr Goulding said that extra holidays would add to financial costs for smaller businesses, on top of the increases in the minimum wage and National Insurance, as well as more regulation.
The Government also proposed that there should be a compulsory workplace pension scheme for all employees.
The constant changes introduced in employment legislation were confusing for smaller firms and added to their administration costs".
"We understand that the Government wishes to help hard-working families enjoy higher wages, better pensions and increased leisure time," he said".
"However, if this is what they wish to do, they should look towards decreasing other costs for smaller businesses".
"But at a time of increasing unemployment, the Government seems to be oblivious of the knock-on effects of such proposals, however desirable they may seem".
The FPB and some of its members are meeting a senior official from the Department of Trade and Industry (DTI) next Tuesday (29 August 2006) to discuss business concerns.
Mr Goulding said: "We are pleased that the DTI is going to hear what our members think".
"It remains to be seen whether, at the end of the day, the Government takes any notice.".
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