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Employment legislation has cost £70bn since 1998

The CBI warns employment regulation in the UK has reached a “tipping point”, after adding £70bn to business costs since 1998.

The business organisation points out that laws added in the last ten years could have added 215,090 people on an average wage to the country’s work force, and future legislation should only be passed if it will help create sustainable jobs.

The CBI also recommends the government implement an Alternative to Redundancy (ATR) scheme, which would see employers match jobseekers allowance for six months, giving the employee the chance to look for work, or return to the company if conditions improve.

John Cridland, CDI Deputy Director General, said: “The worst of the recession may be over, but businesses still face a long convalescence and the dole queues will continue to grow.

“The ATR scheme could save jobs by giving businesses more leeway as the economy recovers.”

He added: “Businesses will be more able to cope with sharp drops in demand and prepare for recovery, while workers benefit from improved financial support and a door that is kept open for six months.”

CBI Assistant Regional Director Liz Mayes said: “Companies on the region have worked hard to maintain employment throughout the current downturn in a variety of innovative ways.

“As businesses in the North East have grown over the last few decades they have built up a highly skilled talent base, and with skills shortages being an issue prior to the recession, companies have been reluctant to let good people go.

This was posted in Bdaily's Members' News section by Ruth Mitchell .