Employment laws to cost West Mids £1.7bn, says chamber
New employment laws due to kick in over the next four years will cost UK businesses a staggering £22.87bn, with West Midlands firms out of pocket to the tune of £1.75bn. That’s according to the Coventry-based British Chambers of Commerce (BCC).
The BCC’s Employment Timeline, published today, shows a raft of new employment legislation which is set to come into force between April 2011 and April 2015.
Seven major changes are planned for 2011 alone including the right to request time off to train, pensions reform and the agency workers directive.
The constant threat of tinkering to employment law is “detrimental to business and has to stop”, according to the chamber.
The right to request time off to train will have an annual recurring cost to business of £174.96m, and the agency workers’ directive, which also comes into play later this year, will have an annual recurring cost to business of £1.5bn.
The pensions reform, which is set to be introduced in 2012, will have an annual recurring cost to business of £4.5b, the chamber warned.
Louise Bennett, the chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “We have fed our members’ views into the BCC’s work on this and we are whole heartedly behind this campaign to reduce the burden of employment law on business.
“The government wants business to take up the slack from the public sector but that means removing the restraints from employing more staff not adding to them.
“As we all know the economic recovery is fragile and the upcoming Budget must start to deliver on the promises to business that it will be free to deliver growth in 2011.”
