Reduction in paperwork saves time and money

Businesses are saving an estimated £418 million a year from the costs of dealing with employment law, new research has found.

Free advice and simple online tools have helped firms cut the time and money they spend on compliance. More than a million small firms have been contacted by the Department for Business in a campaign to tackle the administrative costs of dealing with six key areas of employment law.

The estimated savings are a substantial increase on previous expectations of £365 million saved by May 2010.

Employment Relations Minister Pat McFadden said: “Our ambitious programme to cut the costs of regulation on business is already achieving positive results, but there is still more we can do.

“In the present economic climate we are focused on doing everything we can to help business, without harming rights at work.”

The impact of the Employment Guidance Programme, which started in 2005, was praised by an independent panel including the CBI, British Chambers of Commerce and Trades Union Congress, in particular its commitment to make a real difference for business on the ground.

Research firm ORC surveyed more than 1000 companies earlier this year. Their findings point to big cuts in the amount of money spent by business on administering:

• Maternity and paternity leave and pay
• Flexible working time applications
• Working time and 48-hour opt-out record keeping
• National Minimum Wage

The research also found that 74% of businesses found compliance easy, up from 51% in 2005. Just 8% still found compliance difficult.