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27/04/2009 - Directors criticise equality laws

The "mass" of employment law is causing huge problems for the UK's smallest firms, according to a report.

The British Chambers of Commerce (BCC) released the findings of a survey of 3,400 businesses ahead of the publication of the Equality Bill.

Already having been attacked by industry groups, the Bill will include measures forcing firms to conduct pay audits as part of a drive to cut the 17% gender pay gap.

Business groups have warned that at a time when firms are struggling to cope with the recession, the move will only add fresh burdens.

The BCC's survey also highlighted the importance of migrant workers to British firms, with around a quarter of businesses employing migrant labour because of a shortage in suitable local candidates with the required skills, experience and work ethic.

Miles Templeman, director-general of the Institute of Directors, said: "This is a further example of unnecessary regulation at a time when companies, particularly small and medium-sized enterprises, are struggling to survive.

"Directors take the equality agenda extremely seriously and would have been happy to co-operate with a number of more constructive measures, but this is a retrograde step that will do little to tackle the discrimination problem."

Copyright © Press Association 2009

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