New legislation 'to cost businesses £25bn'

New legislation 'to cost businesses £25bn'

New legislation 'to cost businesses £25bn'

Business may have to pay out £25 billion over the next five years as a result of new employment legislation.

According to the Daily Mail, the British Chambers of Commerce (BCC) has contacted ministers to warn them that firms will have to pay more if measures such as letting fathers share paternity leave with their partners are pushed forward.

A total of 13 pieces of legislation are due to be introduced in the next four years and director-general of the body David Frost said that the government needs to bring down the costs of employing people if it is to see the economy recover.

"What must not happen after a general election is that a new government - from whatever party - decides to add to this already sizeable burden," he remarked, adding: "From what employers tell me, they will get on with creating jobs and wealth, but they need [the] government to get off their backs."

The BCC said the forthcoming equality bill will cost businesses £190 million in one-off payments, while giving agency workers the same rights as their permanent counterparts will result in firms having to spend a further £1.5 billion.

Reforms of pension schemes are expected to bring £4.8 million more in costs, while the one per cent increase in National Insurance contributions - which is to come into effect next April - is to result in another £14 billion in payments.

Earlier in the month, Abigail Morris of the BCC said that the human resources departments of large firms will find dealing with the changes a "challenge", while smaller companies are likely to find it "almost impossible".

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