BDO Transitions: Regulation strangles job creation
REGULATION is becoming a barrier for businesses looking to create jobs, according to a new report from accountants and business advisors BDO.
The latest report in the Transitions series, ‘Transition to a New Regulatory Environment’, identified employment law as a minefield for many businesses, particularly small employers.
Faced with an increasing mountain of regulation, the report says, some employers are inclined to give up.
Many only face up to the devil in the detail when something goes wrong – for example when an employee sues for constructive dismissal, often on the basis of a sin the company never knew it had committed in the first place.
Tim Clarke, partner at BDO, recognises the fears faced by many businesses.
“The new Equality Act generated a storm of comment when introduced in October,” he says.
“Stories circulated about the banning of office banter, and the heavy hand of Europe weighing down on UK employers. But now, even the Government concedes that the cost to UK plc of simply understanding the new legislation will amount to nearly £190m.”
Against this backdrop, BDO believes the drive for growth will lead to lower barriers in employment regulation, making it simpler for employers to navigate and understand their rights and obligations.
