Businesses concerned by employment law changes – report
BUSINESSES are becoming increasingly concerned by the recent and upcoming changes to employment legislation, according to a new report.
Law firm Irwin Mitchell’s Employment Law Survey 2011 suggests that the majority of businesses are confused by the default retirement age (DRA) legislation.
The survey, conducted over a number of seminars presented by Irwin Mitchell for business and HR leaders across Yorkshire revealed that 84% of businesses support the introduction of an employment tribunal fee in order to reduce the number of perceived spurious claims.
Fifty-nine per cent said they were concerned that there will be an increase in the number of employment tribunal claims this year while over half of businesses believe there will be a rise in the number of employment tribunal claims as a result of the removal of the default retirement age.
Just 19% say that new employment legislation planned for this year will have a positive impact on their businesses.
Liesel Whitfield, from the employment law team at Irwin Mitchell, said: “Businesses in Yorkshire are clearly worried about the volume of changes in employment law over the past few years and the impact that this will have in relation to tribunals.
“There is also a concern over how much businesses know about the upcoming changes – which could land them in hot water if they fail to comply.”
The survey also found that 63% of business leaders believe that the government has not clearly communicated the changes to DRA.
Whitfield added: “There are mixed feelings about whether their businesses will be affected by DRA this year, but the communication of the law is a factor in these results.
“Almost half of businesses do not agree the default retirement age should be abolished and over half believe it is being phased out too quickly.
“Businesses are worried enough coming out of the recession without having to deal with new legislation. They need to ensure they are fully aware of the changes to avoid being caught out.”
