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“Huge uncertainty” over employment law changes

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8th Jun 2011
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Employers groups have warned that the government’s continued tinkering with employment legislation is creating “huge uncertainty” and undermining its goal of encouraging businesses to take on new staff.
 
Business secretary Vince Cable and home secretary Theresa May recently launched the “modern workplaces” consultation, which outlined four key changes to current employment law.

Originally appearing in our sister title HRZone Cath Everett looks at proposals that will result in parental leave increasing by four weeks from 2015.

If desired, both parents could take their time off together and/or in blocks of weeks or months throughout the year rather than all in one go.
 
Flexible working rights would also be extended to all personnel, not just those with children or caring responsibilities, and firms would be expected to carry out equal pay audits if they were found guilty of discrimination at a tribunal.
 
Finally, following recent judgements by the European Court of Justice on the Working Time regulations, changes to which will have to be implemented into UK law, personnel who become sick while on holiday will be able to reclaim their annual leave dates. Those on long-term sick leave will also be able to accrue holiday entitlement.
 
But David Frost, director general of the British Chambers of Commerce, was highly critical of the proposed changes. “Our economic recovery is far from secure, but ministers are yet again tinkering with employment legislation. These kinds of laws create huge uncertainty for employers and prevent them from taking on more staff.”

While the government won praise last week when it pledged to streamline costly employment regulations, this latest move showed it was simply “giving with one hand and taking with the other”, he added.
 
For example, lengthening the amount of time that parents could take as paid leave and inviting them to negotiate on how time should be taken off work with their employers just created “more confusion and costs for business owners”. It was also likely to expose them to “endless appeals, legal challenges and grievances”, Frost warned.
 
John Walker, national chairman of the Federation of Small Business, agreed. He expressed concern that the government’s plans were an example of “a contradictory approach to regulation”.
 
“Freeing business from the shackles of regulation is meant to be a key government commitment. Yet only days after announcing the welcomed employment law review, a raft of new employment burdens were announced. It is precisely these types of regulations that will hinder rather than help small firms,” Walker said.
 

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By richardterhorst
10th Jun 2011 12:20

Surprise? No.

Sounds like typical wishy washy Libdems policy being implemented.

And the penny still has not dropped why any SME avoids employing people like the plague.

What idiots politcians are.

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By dbowleracca
15th Jun 2011 23:14

It makes you want to scream sometimes
It's obvious from this that none of these two have ever tried running a small business.

Most small business owners would love to hire more staff and grow their business but with legislation like this who would want employees at all?

You pay 13.8% NIC for the privilege and have to pay them and hold their jobs open when on maternity leave, which is a nightmare financially and logistically.

You can't get rid of poor performers without lengthy legal process, but they get extra holiday if they are sick when they are on their (paid) holidays! And then we have a royal wedding that they get paid for watching too!

It's hard enough to start a business, get finance and deal with all the other red tape - no wonder noone wants to own their own business it's better working for someone else,
Especially given the pension reforms that will cost employers a further 3% in several years.

Resign and give someone who knows what they are doing a chance you idiots!!!!!!!!!!!!!

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