
Three in ten small business bosses do not comply fully with the Health and Safety at Work Act despite being obliged to do so by law, according to research by Bibby Financial Services (BFS).
Firms that breach the rules are open to heavy fines, temporary suspensions enforced by the Health and Safety Executive (HSE) and even permanent closure.
Despite this, the research found that only 21% of respondents felt they knew the rules inside-out, while just under a quarter admitted that they never carry out risk assessments on behalf of their employees.
BFS warns that apart from the risk to employees and the chance of being investigated by the HSE, employers are also more vulnerable to compensation claims from injured employees.
"It is imperative that small businesses have the proper health and safety measures in place," said David Robertson, the group's chief executive.
"The 'compensation culture' is now very much a reality of modern working day Britain, with record numbers of injured or ill workers prepared to fight their bosses in the courtroom for what they perceive as negligence."
BFS recommends that bosses register at least one member of staff with their local council or the HSE, depending on their industry, conduct regular risk assessments and write up a health and safety policy document.
It also says companies should provide safety training for staff and to make available first aid equipment.
The Business Europe website has further information.