Employment law campaign will save employers £418m a year in costs

Employers will save a combined £418m a year in the cost of dealing with employment law by May 2010, according to new government estimates.

A campaign that aims to reduce the time and money employers spend on compliance was originally expected to save £365m a year, but that figure has now been revised.

The Employing People campaign directs firms to Business Link’s online tools, calculators and interactive guides, to help them understand their legal obligations and reduce unnecessary duplication of materials and wasted effort.

Employment relations minister Pat McFadden said: “Giving businesses free and clear advice cuts their costs because if they are getting good advice free from the government they have to spend less on outside consultants. It also helps make sure workers’ rights are respected.”

Recent research by Personnel Today and law firm Pinsent Masons found that the amount of time HR professionals have spent dealing with employment law issues over the last two years has increased. Four in five HR respondents said they spend more time now on employment law issues than two years ago.

Chris Booth, head of employment at Pinsent Masons, said: “The government is trying to provide guidance on what businesses need to do to comply with the law. But what businesses want to know is how to work effectively within the law, and minimise the risk of getting into trouble.”

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