UK businesses face a bill of £23bn as new employment laws come into force over the next four years, a leading business group has warned.
Research by the British Chambers of Commerce (BCC) has revealed that the new employment laws, due to be implemented over the coming four years, will cost British companies almost £23bn.
The group has criticised the government for going back on a pledge to tackle the burden of red tape for small and medium sized enterprises.
New employment legislation is due to take effect between April 2011and April 2015, with the most costly regulations for businesses including: the Right to Request Time off to Train (2011), which will cost £174.96m a year, the Agency Workers Directive (2011), which will have an annual recurring cost of £1,548m, and the Pensions Reform (2012), which will cost £4,526 per year. The non-EU migrant cap is also expected to affect business growth.
David Frost, director general of the BCC, said: “The government claims business growth is top of the agenda, yet UK firms will be hit with huge costs once these new regulations come into force.”
With seven major changes planned for 2011 alone, the BCC is urging the government to match its rhetoric with reality – by starting the deregulation process and scrapping costly employment laws which are a burden on business, particularly smaller firms.
Frost added: “Companies cannot generate growth and create jobs when they are facing a £23bn bill, just to implement new employment legislation. Unless the government reduces this kind of red tape, we will continue to have high levels of unemployment and could end up derailing the recovery.”
© Crimson Business Ltd. 2011