DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/292)
issued by COI News Distribution Service. 2 December 2008
Businesses are
saving an estimated £418 million a year from the costs of dealing
with employment law, new research has found.
Free advice and simple online tools have helped firms cut the
time and money they spend on compliance. More than a million small
firms have been contacted by the Department for Business in a
campaign to tackle the administrative costs of dealing with six
key areas of employment law.
The estimated savings are a substantial increase on previous
expectations of £365 million saved by May 2010.
Employment Relations Minister Pat McFadden said:
"Our ambitious programme to cut the costs of regulation on
business is already achieving positive results, but there is still
more we can do.
"For example, new changes to dispute resolution that will
cut costs further were approved by Parliament last month.
"Giving businesses free and clear advice cuts their costs
because if they are getting good advice free from the Government
they have to spend less on outside consultants. It also helps make
sure workers' rights are respected.
"In the present economic climate we are focussed on doing
everything we can to help business, without harming rights at
work."
The impact of the Employment Guidance Programme, which started in
2005, was praised by an independent panel including the CBI,
British Chambers of Commerce and Trades Union Congress, in
particular its commitment to make a real difference for business
on the ground.
Research firm ORC surveyed more than 1000 companies earlier this
year. Their findings point to big cuts in the amount of money
spent by business on administering:
* Maternity and paternity leave and pay
* Flexible working time applications
* Working time and 48-hour opt-out record keeping
* National Minimum Wage
The research also found that 74% of businesses found compliance
easy, up from 51% in 2005. Just 8% still found compliance difficult.
A key part of the Employment Law Guidance Programme has been
helping firms avoid unnecessary and costly over-compliance with
regulation.
As well as contacting employers directly with advice and support,
the programme has created new online tools and sample forms to
help show employers what they need to do quickly and clearly. A
direct mailing campaign has reached more than a million small
businesses, including 700,000 contacted last month.
Notes to Editors
1. Popular sources of free information for businesses include http://www.businesslink.gov.uk,
the Department for Business and ACAS.
2. The Employment Law Guidance Programme is part of
cross-Government efforts to reduce the costs of regulation on
business.
3. Departments and agencies across government have agreed targets
to cut the cost to businesses of administering regulation by 2010.
They will publish updated simplification plans later this month,
showing the amount cut from business burdens and progress towards
their 2010 targets.
4. The Employment Act, which gained Royal Assent last month, will
introduce a new statutory ACAS code on dispute resolution, helping
workers and businesses resolve complaints before needing to go to
a tribunal.
5. The government has also given ACAS up to £37m more in its
budget over the next three years to handle its increased role.
6. Examples of how individuals and businesses are benefiting from
changes to regulation can be found at http://www.betterregulation.gov.uk
.
The site also invites suggestions for what else can be done to
reduce red tape.