A BUSINESS group has called on the Government to stop constantly changing employment laws and regulation.

The Forum of Private Business estimates that last year small and medium enterprises spent £18.2bn complying with red tape – an average cost of £14,800 each.

It has now suggested the Government should only regulate once in any one area of employment law every parliamentary term.

Employment law accounts for £4.7bn of the overall cost of compliance, and while firms have been happy with government action to cut the red tape burden on SMEs, concerns remain around the constant change in their duties.

The Forum says rules around parental leave have, on average, changed, every 18 months since 2002. Every time a law changes, businesses have to make sure their staff are trained up, or outsource the administrative burden, involving significant costs. Next year, a change allowing shared parental leave is also likely to cause further upheaval and cost.

Phil Orford, Forum chief executive, said: “The coalition government intended to be the first government in history to reduce – not increase – the overall burden of regulation.

There have been some very positive changes to the way regulations are made, tested and implemented, but to date businesses are not feeling the benefits.

“This suggests there is a clear mismatch between the positive deregulatory work of the government and the increasing cost of compliance for businesses. This is undoubtedly down to the continuous flux of regulatory change.”

The Forum is calling on the government to stop the constant change of employment law.

Mr Orford said: “This is not a business group being antiparental leave or anti-flexible working, it is a business group that is against the constant change in the law and is standing up for the needs of small businesses. There have been eight changes to parental leave since 2002 – one every 18 months.

“Businesses want clarity, consistency and certainty. At the moment too many deregulatory measures are focused within Whitehall processes, rather than addressing the impact at the coal face.

“Small businesses often lack HR departments to keep on top of changes, so we are proposing a new approach to employment law that is both proportionate and fairer.”