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CBI COMMENTS AHEAD OF CHANGES TO EMPLOYMENT LAWS

CBI

30 September 2011

The CBI today (Friday) commented on changes to employment regulations coming into force from tomorrow (1 October), including new rules on agency workers and the removal of the default retirement age (DRA).
Katja Hall, CBI Chief Policy Director, said:
“At a time when we should be nurturing companies and helping them to grow and create jobs, these regulatory changes are simply counter-productive."
On agency workers, Ms Hall said:
“There couldn’t be a worse time to bring in this unwelcome Brussels Directive.
“A hard-won 12-week qualification period for each temp to be in a firm before the rules are applied should help control costs and minimise administrative burdens.
“But the new rules will still act as a brake on jobs. The Government must take the first opportunity to remove unnecessary gold-plating or reform the directive.”
The new rules on agency workers will cost employers an estimated £1.8bn a year, and affect over 1.6m workers.On the removal of the DRA, Ms Hall added:
“In the absence of a default retirement age, the Government must act now to spell out how employers can have a protected conversation about employees’ retirement plans without fear of tribunals.
“The Government has dithered too long on this issue. The DRA was valued as it helped employers to plan ahead and manage changes to the workforce. We urgently need an effective new framework for retirement planning.”