Responding to the Government’s revised impact assessment of the Employment Rights Act on business, Kate Shoesmith, Director of Policy at the British Chambers of Commerce said:
“The revised impact figure of £1bn is likely to be a massive underestimate. We are sceptical that there is sufficient evidence to make a proper financial assessment of how much the Employment Rights Act will cost business.
“The impact figure doesn’t adequately account for the harder to quantify costs. Those include staff time for understanding and implementing new processes or explaining these to colleagues.
“Concessions such as introducing the 6-month qualifying period will reduce costs – but not on the scale this latest assessment suggests.
“We continue to hear from businesses every day who are deeply concerned about the cumulative financial impact of this legislation. Firms tell us it will have a direct impact on their ability to recruit, develop and harness a skilled workforce.
“With further consultations and secondary legislation to come, it’s crucial that the government works with business to minimise costs to employers.”