Employment laws 'cost businesses £37 million'

News Article - 02 October 2006
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Businesses have paid out £37 billion since the introduction of anti-discrimination employment laws, the Confederation of British Industry (CBI) has said.

The organisation has said that since 1998, the implementation of 35 new employment rights laws has resulted in a £37 billion bill for employers.

In a study, three-quarters of employers told the CBI that putting the rules into practice was damaging their business. Half said that the cost of labour had risen and a third believed the new laws badly affected their chance of competing in the market.

CBI's deputy director general, John Cridland, said: "It is little wonder firms lack confidence the government will deliver on its promises of better regulation.

"It has already failed the first test of its own 'one in, one out' principle by implementing the Work and Families Act without taking back administration of statutory maternity pay, as proposed."

According to the company, the government should establish a low-cost shared human resources (HR) facility to provide advice on employment issues for small and medium-sized companies that cannot always afford dedicated HR staff.

Mr Cridland called for the government to simplify the regulations where they were too complex and "remove the clutter".

The news follows the announcement by the company last month that the new age discrimination rules would represent the "most significant change in employment law for many years".

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