Social chapter welcomed, red tape criticised

While companies in general recognise the benefits of the social chapter, there is concern about the possible increase in bureaucratic red tape, according to a new survey by international law firm Lovell White Durrant, which explores the impact of new employment legislation on larger companies.

88% of respondents to the survey agreed the social chapter was important in safeguarding employee's rights and more than half were in favour of harmonising employment laws across Europe. However, criticism was levelled at the inflexibility, complexity and rushed implementation of the reforms, with eight in ten concerned about the increase in bureaucracy and business costs.

The report, based on the answers of interviews of HR directors of UK corporations, found that more than half of those surveyed said that the implementation of the new legislation - especially the Working Time Regulations - was one of the biggest challenges they had faced in the past two years.

The working time regulations which were introduced last October have caused controversy in the media, and workplace. Although nearly two-thirds of respondents welcomed the protection the regulations offered employees, 83% thought they created unnecessary red tape and 80% felt they were unclear.

It was also admitted that over two-thirds had to some extent opted out of the regulations and most companies still have some employees who exceed the 48-hour working week.

David Harper, employment partner at Lovell White Durrant commented: "HR directors appear generally to support the principles behind the Social Chapter, and demonstrate a growing recognition of employees' rights and the need to balance working and private lives.
"Harmonising employment law across Europe might well be a laudable goal, but our experience to date shows that the majority of large corporates would settle for the British system with its greater certainty, flexibility and absence of bureaucracy.

"The plea for greater clarity, flexibility and appropriate time for implementation of employment legislation cannot be ignored. It is directly related to employers' frustration at having to find extra resources to cope".

Julie Crisp