Responding to the Government’s roadmap setting out how it will deliver its new package of additional employment legislation through Make Work Pay, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: “Today's timetable sets out when waves of disruptive changes will now hit small employers in the coming months."

“More than nine in ten small employers are already seriously concerned about this Bill, and the 28 new measures here have not yet been improved during the legislative process."

“The clock is now ticking, and without listening to proposals from business to improve these reforms, the changes simply add complexity and risk to new hiring and existing employment."

“Conflict and costs on small employers will escalate, which the Government itself estimates will mount to £5 billion a year. There is nothing in these announcements to help create growth or achieve 80 per cent employment."

“It’s a lot for small employers to take in – from changes to Statutory Sick Pay (SSP), unfair dismissal and how zero hours contracts work – and they don’t have HR teams to help them navigate the complex changes."

“Putting plans to expand unfair dismissal from day one back to the tail end of this whole process shows the Government realises just how complicated and difficult it is. But there’s no two ways about it; all it’s going to do is make small employers more reluctant to recruit and fearful of being open to vexatious claims. It will also open up a tribunal system already at breaking point to a flood of spurious cases. This will increase the denial of swift and fair justice to far more people."

“It’s those furthest from the jobs market who will then suffer, because the less risk small employers can afford to take, the fewer second chances, fresh starts and first jobs they’ll be able to offer. That means more people left on the sidelines, stalled growth and a ballooning welfare bill the country can’t afford."

“Small employers want to do the right thing, and crucially, they want to grow. Taking someone on must not mean risking a tribunal claim from day one, with the pressure to settle despite doing nothing wrong, or face two years of expense and worry. Of course, existing protections against unfair dismissal on day one, including for protected characteristics, are and must remain, non-negotiable."

“A practical way forward would be creating a dedicated route outside the tribunal system, handled by the new Fair Work Agency that will now launch next Spring. This would give employees a place to raise concerns while protecting small firms from being pushed into legal action before probation is even complete."

“The Government must conduct further work with small employers, fix the flaws and make sure that any new measure brought in actively encourages growth, rather than impeding it."

“Today’s timetable also now confirms the date for much larger SSP payments to come in, in April next year. That makes the coming Autumn Budget the key moment to bring in a rebate for small employers, allowing them to manage rising costs and easing the pressure when staff need to take time off when they’re sick."

“Sickness absences already cost an average small employer more than £3,500 per year, or £5 billion across the economy, and today's announcement will see these rise dramatically from next April. We need a better focus from Government on helping small firms look after people and get them back into healthy work.”