HR laws stifling UK competitiveness

16/03/2010

UK competiveness is being stifled by the sheer weight and complexity of employment law, it has been claimed.

The British Chambers of Commerce said ‘the relentless flow of complex’ HR regulation was also risking future jobs creation.

The lobby group argues that basic workplace protections have now been replaced with overbearing regulation such as rights to request, extended time-off provisions and ‘unreasonable’ health and safety restrictions.

“There is an emerging consensus that employment law is now weighted too far in favour of the employee,” said David Frost, director general of the BCC.

“Many rights come from EU legislation, which is informed by and aimed at labour markets very different to our own. The result is that the UK and the EU are becoming increasingly uncompetitive due to the rising cost of labour.”

The BCC has recommended a series of legislation changes including restricting the wait for a first tribunal hearing to 16 weeks – down from 20.

The organisation also said companies should not have the same responsibility for ensuring health and safety in a remote worker’s own home and firms should only be responsible for equipment they have provided staff with.

Frost added: “Encouraging job creation – and therefore wealth creation – must remain the government’s priority as economic recovery continues.”