EU agreement a boost for smaller agencies, says REC

EU agreement a boost for smaller agencies, says REC

The Recruitment and Employment Confederation has welcomed news of an agreement by EU business ministers to reduce the amount of red tape facing small companies.

Under the proposals, small businesses classed within a new category of 'micro-entities' would be exempted from certain accounting obligations.  The move has been welcomed by. Employment Relations Minister Ed Davey, who was involved in the discussions.

Commenting, Gillian Econopouly, the REC’s Head of Policy said:

“We welcome the acknowledgement that micro-companies and start ups often struggle to cope with the administrative and financial obligations attached to running a small company, which can detract from their ability to grow a viable business.

“Our economy needs those with the vision and drive to start their own companies, and the fact that these entrepreneurs may not be accounting experts should not be allowed to deter real innovation.”

She added: “We need to strike a balance between ensuring that companies account for their activities without fettering entrepreneurial spirit through excessive regulation. Hopefully these proposed rules for the smallest companies will prove a positive step towards achieving this. 

"Many recruiters have direct experience of starting their own businesses, and of helping young companies deal with employment regulations as they expand. The REC will be happy to share this expertise with BIS ministers as they work with the European Parliament to take this sensible step forward."