Bisulfide

A moratorium on laws related to employment has been suggested by the British Chambers of Commerce (BCC). The BCC holds that the immense cost involved in introducing new regulations and tax might adversely affect the process of upturn of the economy after the recession and might become an obstacle to creation of jobs.

According to BCC’s latest calculations, the job regulations and imposition of taxes will see companies in the UK spending more than £25.6bn in the coming four years.

The BCCC says that half of this money (£25.6bn) is generated from National Insurance contributed by businesses. There will be an increase of 1% in such contributions from the coming year.

The BCC has calculated the costs of some other forthcoming regulations, which include:

The Equality Bill, to be launched in 2010, which will cost employers £190m

The Agency Workers Directive, to be introduced in 2011, where companies will have to bear yearly recurring cost of £1.5bn

Pensions Reform, which is scheduled for 2012, and which will see companies bearing £4.8bn as recurring cost yearly

Such additional costs have led the BCC to propose a suspension of employment legislations in Britain for three years. It believes that such a suspension would give space to the forthcoming regulations, foster economic upturn and growth, and result in creation of new jobs. The BCC is even urging the government to advocate a suspension throughout the European Union.

David Frost, Director General of the BCC, said in this regard that if businesses have to incur heavy costs on employing people, then they will not be able to contribute towards successful job creation or towards recovery of the economy.

The Chartered Institute of Personnel and Development (CIPD) is the professional body for those involved in the management and development of people. Workplace Law offers approved fast track CIPD courses suitable for anyone involved in human resources management, training and development.