“We strive to achieve the best outcome as early as possible by effective analysis and communication of our client’s case” Edward Bond

Legal Updates

 

 

Legal Services

  • Negotiating appointments and terminations
  • Restructuring and Redundancy
  • Disciplinary and Grievance procedures
  • Unfair dismissal and wrongful dismissal
  • Discrimination
  • TUPE Regulations
  • Employment Tribunal proceedings
  • Staff handbooks and Employment Contracts
  • Directors’ Service Agreements and Non-Executive Directors’ Letters of Appointment

BIS consultation about protection for small businesses

12-February-2016
12-February-2016 12:28
in General
by Admin

The Department for Business, Innovation & Skills (BIS) has published the government response to the call for evidence on the protection of micro and small businesses when purchasing goods and services.

 

BIS has responded to the results of its consultation last year on whether existing legislation sufficiently protects micro and small businesses (MSBs) buying goods and services for business use or whether MSBs should also enjoy some degree of the additional protection afforded to consumers. The consultation did not address regulated sectors, where the government could ensure focus on the needs of MSBs through policy guidance given to regulators.

 

Those supporting change to existing MSB protection felt that additional protection, equal to that enjoyed by consumers, was needed to address the unequal bargaining position of MSBs when dealing with larger suppliers, and that MSBs needed help to understand their existing legal rights and in seeking redress where needed. Those opposing it felt that change could increase cost and burdens on suppliers, for example in defining MSBs and identifying them at the point of sale, and might also adversely affect MSBs who themselves supplied other MSBs.

 

BIS noted that:
1. |  The difference in bargaining position between MSBs and large suppliers might lead to less favourable outcomes for MSBs. It noted, however, the absence of compelling evidence that large suppliers were in fact abusing their bargaining power.

2. |  Opportunity cost was proportionally higher for MSBs than for larger businesses both in buying goods and services and in pursuing redress where they were defective.

3. |  The consultation had produced little quantitative evidence as to the costs and benefits of current legislation. Cost/benefit analysis was needed before deciding whether or not to extend consumer rights to MSBs..docx

 

 

BIS concluded that more work was needed on whether additional protection is needed for micro businesses in unregulated sectors, and will consult further on this subject this year. In parallel, the UK Regulators Network will consider what protection they need in regulated sectors as part of its 2016 programme.