The Federation of Small Businesses (FSB) has welcomed a House of Lords decision to reject European Commission proposals to extend EU labour laws, it has emerged.
A report on the matter, entitled Modernising European Union labour law: has the UK anything to gain? concluded that the relatively light regulation of the British labour market has boosted flexible working systems which has in turn boosted the economy.
Flexible working can be especially beneficial to small businesses.
However, despite the good news, the FSB has warned that the government has not guaranteed that further labour laws will not be imposed in the future, a move which could prove a crippling burden on smaller firms.
Alan Tyrrell, FSB employment chairman, said: "We are pleased that their Lordships listened to our views when we gave evidence on the EU Green Paper on labour law. Their report demonstrates that there is no desire in the UK for the imposition of further EU-inspired labour law.
"Unfortunately, this comes hard on the heels of the UK government signing away its right to prevent this happening in the future at the recent EU summit. This could have grave consequences for small businesses in the UK."
