Businesses could benefit by investing more in the implementation of employment law changes

New research, published by people management experts, the Chartered Institute of Personnel and Development (CIPD) and leading law firm Lovells, shows that many employers find employment legislation helps to build trust and improve the motivation of their staff. However, many more are missing out on business benefits with almost two-thirds (62%) of employers finding lack of resources, such as staff, time and budget, a major challenge in the effective implementation of employment law.

The survey of 600 HR practitioners reveals the Government needs to do more to take into account the needs of business with more than half of employers believing that there is too much employment legislation and 43% believing that there is inadequate guidance from the Government.

Employment and the law reveals almost two thirds of employers feel that existing employment legislation has helped them earn the trust of their employees and ensure that they feel fairly treated. Meanwhile over half of employers believe that legislation can drive good practice and over four-fifths of employers believe it can drive change.

Specific examples of good employment legislation include the Disability Discrimination Act, the Race Relations Act, the Sex Discrimination Act and the Right to Request flexible working legislation, with the majority of employers identifying these as both necessary and as helping them to meet their strategic business goals.

Ben Willmott, CIPD Employee Relations Adviser, believes effective regulation involves the Government helping employers through improved consultation and better-drafted legislation and guidance. Employers also need to recognise the benefits that good regulation can bring and invest in introducing the policies, training and effective communication that will result in positive change in the workplace.

Ben Willmott says, ìClearly employers recognise the need for much employment legislation and in some cases they find it can actually benefit the business by driving the development of policies and practices that can help them recruit, retain and motivate employees. But debate remains over the amount of red tape and the need for the Government to simplify the legal duties facing employers.

ìIf employment legislation has a clear purpose, fits with the UKís flexible labour market and is well drafted it can act as an important lever for change. In order for this to happen the Government must consult with employers before legislation is drafted and showcase the business case for good employment practice. Only then will employers recognise how legislation ties in with good people management and development, and understand how central this can be to business success.î

Main obstacles to effectively implement changes in employment law

Too much legislation (63%)
Lack of resources, such as staff, time and budget (62%)
Lack of senior management buy-in (50%)
Inadequate guidance from Government (43%)
Lack of awareness of changes to legislation (39%)

More effort to involve line managers in the implementation of employment law is required with over one third of organisations lacking awareness of changes to legislation. However, almost two-thirds of employers (64%) recognise changes to people management policies as one of the best methods of making changes in employment practice and helping to implement employment law.

David Harper, Partner and Head of the Employment Group at Lovells, says, ìIn our experience, organisations that invest resources into the introduction and management of employment law gain a competitive business advantage. Line managers typically play a major role in this process. Providing adequate employment law training and support for these managers is a key driver to business success.

ìEmployment law issues can be dealt with effectively when managers understand the legislation and how it affects overall business objectives. Our survey also highlights the importance of communication with the general workforce. Employers have found that some legislation has encouraged greater communication both during and after implementation, which has helped to gain the trust and commitment of employees.î

Flexible working legislation ñ an example of good employment law

Employer perceptions of the flexible working legislation:

98% were aware of the new legislation before it was introduced 55% of employers feel it is a driver of good practice Only 14% feel it is difficult to apply
71% donít feel it is hard to meet the regulations
63% of those that did find it hard to meet the regulations believe managers find it hard to manage those working flexibly, however only 29% provided training for managers in understanding and implementing legislation
21% already had policy in place and 52% developed policies in response to the legislation

Business benefits of flexible working legislation:

27% state that their staff retention has improved
10% use flexible working as a recruitment incentive
11% believe it has reduced absence
20% believe it has improved staff morale

The CIPD and Lovells research will be launched at the CIPDís Annual Employment Law Conference and a free copy will be available to all delegates. It investigates employersí awareness of legislation, attitudes towards employment law and the challenges it can bring. It also examines issues surrounding the new rights to request flexible working and the working time directive.

The conference will provide an early opportunity for employers to consider the emerging legislative programme of a third term labour Government. It brings leading experts together to update employers on the latest developments in UK employment legislation and outline the practical implications of changes to the law.