- New proposals on non-disclosure agreements and mourning leave could add 80 million pounds sterling to existing costs
The clauses recently added to the bill on employment rights are expected by the government to add an additional 80 million pounds per year of costs for British companies, according to the employment team at TWM SOLICITORS.
This occurs in addition to existing public forecasts of up to 5 billion pounds of costs for employers per year for the bill on employment rights.
One of the new additions to the existing legislation would prohibit the non-disclosure agreements in the event of harassment and discrimination in the workplace, and should cost companies 30 million pounds sterling per year *. Many lawyers have argued that the prohibition of non-disclosure agreements would make it difficult for employers to negotiate regulations with employees in cases where the employer does not think that harassment or discrimination has occurred.
The other proposal would extend the unpaid mourning leave to those who lose pregnancy before 24 weeks, which could add more than 50 million pounds sterling for businesses *.
Anthony Wilcox, partner and specialist in employment law at TWM SOLICITORS, said: “The costs of the bill on employment rights continue to set up.”
“It is already the most expensive and complex job legislation of a generation.”
“The bill continues to become more and more complicated and expensive, which is unlikely to increase employment across the country.”
“Employers are rightly very concerned about the cost of this legislation and the amount of new administrative formalities with which he will suffocate them.”
“The economy has grown considerably since these proposals were presented for the first time. Delaying their introduction until the conditions are improving would be a much more suitable approach to business. ”
Before the latest clauses, estimates put the cost of invoice to companies between 900 million pounds sterling and 5 billion pounds sterling, according to the form that the final law takes.
TWM lawyers warn that, as the bill becomes more complex and that costs exceed initial estimates, companies can refrain from making new hires due to the increase in employment.
Anthony Wilcox adds: “The reduction in the period during which employees can make claims for unfair dismissal will potentially prevent employers from hiring staff with whom they do not feel 100%.
* Source: government impact assessments and analytical documents concerning the bill on employment rights.
