Could employment law hinder business?The UK’s economic recovery after leaving a prolonged period of recession this week could be hindered by the red tape of employment law, it has been claimed.

According to the Daily Mail, the British Chambers of Commerce has contacted MPs to urge them that many companies already struggling may not be able to cope with government and EU planned changes to employment law.

Indeed, it is estimated new red tape will cost UK businesses some £25 billion over the course of the next four years.

Among those proving more costly will be the Equality Bill – which will introduce gender pay reporting along with restrictions on age and disability discrimination – and moves to give agency workers the same rights as full-time staff.

Furthermore, planned pension reforms and an increase in National Insurance contributions could place further pressure on businesses.

The Chartered Institute of Personnel and Development and the British Chambers of Commerce recently urged the government not to introduce any more statutory rises in National Insurance contributions, as this could harm the jobs market.