A representative body for British business has accused the Government of putting forward proposals in the Queen’s Speech that “will cost businesses time by imposing new employment legislation.”

The British Chambers of Commerce (BCC) has criticised the imposition of further red tape for employers at a time when many businesses are struggling to weather tough economic conditions. The Queen’s Speech outlined a raft of controversial, new employment legislation including the Equality Bill and flexible working laws.

The Equality Bill will enable the Gvernment to use its procurement power to promote fairness. It will force private sector contractors to disclose information about their gender pay gap and staff diversity that could affect their chances of winning government work.

The BCC has said it does not “accept engineering social equality through the tendering process for public contracts” and warned that “this could end up being a bureaucratic nightmare for small businesses.”

The Government had already come in for criticism for its proposed flexible working laws in the months leading up to the Queen’s Speech as Lord Mandelson suggested that they may be deferred for a more benevolent economic climate.

The new laws will extend the right to request flexible working to parents of children aged up to 16 from the previous threshold of five years’ old.

“This is not the time for employment legislation,” the BCC has said. “Employers are keen to keep good staff and most already offer flexible working.”

"This is a case of short term pain verses long term gain,” says Andrew Haywood of employment solicitors Dawsons LLP.

“The implementation of further employment legislation will undoubtedly be an unwelcome burden on employers, particularly in the current economic climate, but the Equality Bill should provide employers with clarity and a standardised approach to tackling discriminatory behaviour, which should only assist businesses in the long term."

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