The Confederation of British Industry (CBI) has warned its members that impending changes to employment law could cause financial and logistical problems.
As previously reported, UK unemployment fell during the fourth quarter of 2009. According to the CBI this is partly attributable to the fact that the UK labour market is particularly flexible. The business group has said that changes to the law slated for 2010 will reduce this flexibility and jeopardise a recovery.
The early part of 2010 is expected to see a change to the regulations on union blacklisting, and a reduction in compensation limits for unfair dismissal cases.
In the Spring so-called 'fit notes' will replace sick notes for employees, although there is concern that GPs will not be able to handle the extra burden of work that this will entail. Crucially, though, statutory maternity, paternity and adoption pay will all increase - to £124.08 a week. Controversial new rules allowing mothers to give part of their leave to the father will also come into force.
There are further changes proposed for later in the year, but these are contingent on the result of the general election. It is thought that a Conservative government may roll back some of the proposals, despite the fact that preparations have already been made by industry.
You may wish to read the first in our series of pre-election articles, explaining the differences between the major parties' policies on business.
