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Regulation exemptions need to be made clearer

A leading business group has urged greater detail on the Government's promise to exempt very small firms from new UK regulations.

The Government has pledged that micro-firms, those with fewer than 10 employees, will be exempt from new domestic regulations for the next three years as from 1 April.

However, the Federation of Small Businesses (FSB) has argued that there is a degree of confusion over the exemption.

It is already known that the new paternity leave rules do not form part of the exemption and will apply to small firms.

The FSB said: "At the moment, there is some confusion as to what regulations are included in the moratorium.

"There needs to be clarification as soon as possible so micro-firms know where they stand."

It is thought that the Department for Work and Pensions is preparing information on how the moratorium will take effect and what it will include.