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New Employment Laws Could Prove Costly For UK Industry

by Robin Pilgrim, LawAndTax-News.com, London

26 March 2003

New employment laws set to be introduced in the United Kingdom in April may increase business costs for UK businesses by up to 50%, leading employment, energy, insurance and technology specialist law firm, Morgan Cole suggested this week.

Speaking to the Personneltoday news service with regard to the Employment Act, set to come into effect on April 6, partner Helen Goss warned that new dispute resolution procedures, flexible working arrangements for parents, and increased maternity rights and paternity pay are likely to cause problems for UK employers.

'The new procedures will trip up uneducated managers, with dismissals in breach of the new minimum requirements resulting in automatically unfair dismissals and increased contract claims from staff with less than a year's servive,' she warned, continuing:

'More than ever a spotlight will be put on the steps employers put in place to deal with grievance and disciplinary procedures. If employers are not careful they could find their costs have increased by 50%.'

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