Nearly three-quarters of the country’s sole traders are in the dark about changes in employers’ liability legislation, new research shows.
Just over a year ago government updated the law requiring businesses employing seasonal and part-time staff to have adequate employers’ liability insurance, yet a study by MORE TH>N Business has found that 73% of sole traders admit they are unaware of this change.
Nearly a quarter said they do not understand what such insurance policies cover.
It is estimated that up to 50,000 sole traders are employing seasonal and part-time workers without adequate cover and are risking fines of £125m per day, MORE TH>N Business said.
Individually, these businesses are facing possible fines of up to £2,500 per day and are also liable for compensation and legal fees if an employee is injured or becomes ill at work.
“The summer is a peak time for taking on seasonal staff, and although sole traders are not required by law to have employers’ liability insurance, they must have it if they take on extra staff over the holiday season,” said Rachel Cotton, manager of MORE TH>N Business.
“Whilst we don’t wish to worry sole traders unnecessarily, we are urging them to re-evaluate their situation and insurance requirements. This is not only to protect their own livelihood but also safeguard their employees.”
