Employment law changes 'will cost businesses dearly'

19 January 2010



The country's businesses will be footing large bills to cope with changes made to employment law over the coming years, the British Chambers of Commerce (BCC) has stressed. It suggested that the new measures to be brought in between 2010 and 2014 will provide a regulatory burden, with next year in particular likely to be problematic.

Eight major legislative changes are due to come into force in 2011, the BCC clarified, which will put businesses under more pressure and strain their finances. This year alone, the Equality Bill will lead to a one-off cost of £190 million for UK firms, it said. Meanwhile, it also believes the Agency Workers Directive planned for next year will also have high annual recurring costs.

"What must not happen after a general election is that a new government - from whatever party - comes to power and decides to add to this already sizable burden on business," emphasised the BCC's Director-General David Frost.

Nicola Nicolaou, associate in the B P Collins employment law team, comments: "Whatever the extent of the legislative changes coming into force over the next few years, it is essential that employers ensure that they comply with the obligations placed on them. Despite the expense they may incur in doing so, non-compliance could cost them much more in the future. Taking advice at an early stage is therefore imperative."

Contact our employment law practice group on 01753 279029, complete the online enquiry form or email employmentlaw@bpcollins.co.uk if you would like advice on any employment law matter.

Posted by Jo Davis

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