Rocket Lawyer finds that the majority of businesses are turning to temporary staff over full-time employees

November 23, 2012

Small businesses are struggling to invest in permanent members of staff due to the legal costs.

21st November: Over three quarters (82%) of Britain’s small businesses are choosing not to employ permanent members of staff due to the cost associated with completing the required legal documentation. According to a Rocket Lawyer survey of 2,000 small businesses, over half (56%) of the businesses that took part in the research said cost was the main obstacle for employing permanent staff, and nearly half of respondents (42%) cited the headache of legal compliance as the next biggest factor stopping them from taking on full-time staff.

The situation is not expected to improve either. According to new business owners who took part in the research, new legal requirements for employers, such as the new National Employment Savings Trust (NEST) scheme, are only adding to their worries. Less than a quarter of the UK’s small firms (21%) stated that they feel ready for NEST. Because of this uncertainty, and wider worries about cost, nearly nine in ten businesses (89%) would welcome more support from the government to help deal with legal requirements.

Mark Edwards, Vice President and General Manager UK of Rocket Lawyer, said: “Small businesses and start-ups are the bedrock of our economy. As a result, we need to give them the legal support and tools they need to continue growing. Currently, these growing businesses are facing a burden of legal compliance that is affecting how they can hire.”

Charley Moore, Founder of Rocket Lawyer commented: “There has never been more employment legislation for small business owners to navigate. As in the United States, we are hoping to act as a trusted guide helping UK business owners to successfully manage these responsibilities. We are not advocating cutting corners or quick fixes; instead we want to highlight the easy and affordable ways to make the employment of full-time staff a workable option.”

Rocket Lawyer has helped 20 million people in the United States since 2008, and the company has now established a European office in the heart of Tech City, London. At launch, Rocket Lawyer is making available a range of legal documents aimed specifically at the small business market.

About Rocket Lawyer

At Rocket Lawyer, we believe everyone deserves simple and affordable legal services. Since 2008 Rocket Lawyer in the over 20 million US families and small businesses take care of their legal matters – so they can focus on what really matters.

Rocket Lawyer has already transformed access to the law in the US, and will continue to do so in the UK. Rocket Lawyer is a complete online legal service that provides affordable legal documents and lawyer consultations for any legal situation. For more information on Rocket Lawyer, please contact Sarah Beresford on sberesford@rocketlawyer.co.uk

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