Should I stay or should I go? Changes that will affect small businesses in the public sector

Dispute Resolution - 1 minute read

Are you a small business?

(That is: a business with less than 50 employees)

The Enterprise Act 2016 will introduce legislation to further reduce regulation on small businesses.

One of the main changes that will be implemented (date not confirmed yet) is the cap on redundancy payments to public sector workers. 

This is in addition to the new requirement for workers in the public sector to repay exit payments (typically found in Settlement Agreements; formally Compromise Agreements) where they return to work in the public sector within one year, contained in the Small Business, Enterprise and Employment Act 2015.

This will cause many employees in the public sector to really consider their future employment plans when in a position where an exit payment is offered. 

Other elements of the Act are:

  • Giving shop workers extra rights to opt out of Sunday working;
  • Preventing the misuse of the term ‘apprenticeship’;
  • Compelling insurers to pay insurance claims within a reasonable period of time; and
  • establishing a small business commissioner to assist in resolving disputes between businesses (e.g. late payments).