Small businesses and start-ups in the UK are said to be ‘struggling’ to invest in permanent members of staff, law firm Rocket Lawyer suggests.

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Its survey reveals that 82 per cent of Britain’s smaller businesses are choosing not to hire full-time recruits due to the cost associated with complying with legal documentation. The firm has questioned 2,000 smaller businesses and some 56 per cent say that cost is the main barrier to hiring permanent staff.

Additionally, 42 per cent identify legal compliance as the biggest factor from completing the HR move. Obstacles to hiring include compliance such as the National Employment Savings Trust (NEST) for pensions issues. Only 21 per cent of those interviewed feel ready for NEST, with 89 per cent calling on more support from the government on dealing with the legal requirements.

Rocket Lawyer founder Charley Moore says that there has never been more employment legislation to navigate.

Mark Edwards, vice president and general manager UK of Rocket Lawyer, adds, ‘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.’