Small Businesses In Europe Face 'Unfair' Employment Revisions

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The European Court of Justice revised its ruling on sick leave this past week. Managers could now be incensed to release employees sooner rather than later.

ROB HEDDEN

The European Court of Justice revised its ruling on sick leave this past week, leaving small business owners in high anxiety.

The decision reasoned that employees should preserve their rights to paid annual leave, which may otherwise have been lost by sickness. If an employee cannot take a holiday upon their return, they are now entitled to compensation. The new legislation doubles up on a previous ruling which exerts that, should an employee end an employer?s contract, full salary must be paid for the notice period.

It is speculated that managers could now be incensed to release employees sooner rather than later. In doing so, employers face the possibility of unfair dismissal claims and litigation. Although usually a problem associated with the public sector, long-term sick-leave can hugely affect small companies due to a distinct lack of replacement workers.

Many fear that the Court of Justice have exposed small businesses to mounting costs and hellish bureaucracy. Companies have also suggested that employers will be deterred from further recruitment after the recession has quelled.

The Conservative employment representative, Phillip Bushill-Matthews, expressed his fundamental concern that ruling affecting the British workforce isn?t being made in British courts.