Coalition presses ahead with more employment legislation

Friday, 1st October 2010

The Thames Valley Chamber of Commerce Group has raised concerns about the amount of employment red tape due to be implemented between 2010 and 2014, arguing that businesses need the freedom and flexibility to create as many jobs as possible during the economic recovery.

The warning comes as a raft of new legislation becomes law today, including two changes which will have a particular impact on business. The Equality Act 2010 has a one off net cost to business of £189.2 million, and the adult national minimum wage (NMW) will rise by 13p, to £5.93 per hour – with both the development rate and the youth rate also increasing. From today, apprentices will also be entitled to a NMW of £2.50 per hour.

With legislation still in the pipeline between now and 2014 expected to cost firms a staggering £11.3 billion, the Chamber has said that there should be a moratorium on any new legislation during the life of this Parliament.

Commenting, Claire Prosser, policy executive, Thames Valley Chamber of Commerce Group said:

“If private sector businesses are to replace job losses in the public sector, the significant costs of employing people must be reduced. As austerity measures start to bite, companies need the flexibility and freedom to boost employment and drive our economic recovery.

“While we have heard some good announcements from the Coalition about reviewing and scrutinising upcoming red tape, businesses are yet to see the benefits.

“The Government now has the chance to prove its commitment to reducing the substantial burden of regulation, by putting the brakes on any costly new employment law coming into force during the life of this Parliament.”

Ends

Notes to editors

The national minimum wage rise will cost business £42 million, according to the Government’s impact assessment.

The Equality Act 2010 has a one off net cost to business of £189.2m and a net annual recurring cost of £3.56m.

The Equality Act 2010 codifies discrimination law into one Act and makes several changes, most notably by banning secrecy clauses, banning pre-employment health questionnaires and expanding the definitions of discrimination by perception and association.

Enquiries to The Chamber Press Office
01753 870552