Member Article

New laws cost North East firms £730m

New data has suggested that North East firms are facing collective costs of £730m over the next four years as they implement new employment laws.

As the government prepares to bring in a mass of fresh employment legislation starting from April this year, the North East Chamber of Commerce (NECC) believes this will increase the burden on companies.

The organisation believes that the additional burden comes at a time when the coalition parties have put the onus on the business community to keep the economy growing amid major spending cuts.

NECC said that while the intention behind the new laws is well meaning, the Government needs to give greater support for companies faced with implementing the additional legislation.

Ross Smith, NECC head of policy, said: “Firms face no fewer than seven major changes to employment law in this year alone and yet the level of support from the Government to help companies through this transition is virtually non-existent.”

NECC is urging the Government to act swiftly to identify and remove unnecessary legislative burdens on businesses so that the latest law changes are, at worst, cost neutral.

It has welcomed the planned reform of the tribunal system and called for the Government to move forward faster with the changes.

It is also keen to see a more streamlined approach to employment law where politicians take the time to get it right rather than constantly tinkering with policy.

This was posted in Bdaily's Members' News section by Ruth Mitchell .