Employment and The Law:: Burden or Benefit?

Survey report June 2005
EMPLOYMENT
AND THE LAW:
BURDEN OR BENEFIT?
Contents
Foreword
Summary of key findings
Attitudes to employment law
The impact of employment law on employment practice
How regulation is translated into practice
11
Training
15
How HR promotes the importance of compliance
16
The impact of employment regulation on strategy and business planning
17
Employment tribunals and the risk of litigation
18
Keeping up to date
19
The right to request flexible working
21
The Working Time Regulations
25
Conclusions
28
Survey methodology
29
Employment and the law
Foreword
Employers in the UK have had to implement a range
whether it is presented and promoted in a clear and
of new employment legislation from both the UK
accessible format. Just as important is how changes to
Government and Europe over the last few years. Some
employment law translate into changes in employment
estimates put the cost to UK businesses of meeting
practice and behaviour in the workplace.
regulation introduced between 1997 and 2004 as high

as 30 billion.
In what is thought to be the most comprehensive

survey of its kind, the CIPD and Lovells specialist
The new legislation has included the right to request
employment practice teamed up to canvass the views
flexible working for parents with young children,
of those on the front line the HR professionals who
extended maternity and paternity provision, new
are responsible for identifying new legislation, then
anti-discrimination laws and the Working Time
ensuring it is implemented within their organisations.
Regulations. Legislators explain these interventions as

being important to ensure increased fairness at work,
This Survey Report looks generally at attitudes to
to boost productivity and as a necessary response to
employment law and regulation, then goes on to
demographic and social change, such as an ageing
consider the impact of two specific pieces of law: the
population, changing family structures and shifting
right to request flexible working (introduced under
migration patterns.
the Employment Act 2002) and the Working Time

Regulations 1998.
However, there is a lack of agreement as to whether

employment legislation promotes efficient employment
The aim of the survey was to help us understand what
practice or creates an unnecessary regulatory burden
employers really think about employment law to get
on UK businesses. An important aspect of this debate is
behind the headlines and identify the issues and themes
about how well drafted employment legislation is and
that matter in the real world to real organisations.
Ben Willmott
David Harper
Employee Relations Adviser
Partner and Head of the Employment Group
CIPD
Lovells
Summary of key findings
General employment law findings

The CIPD and Lovells have surveyed HR
professionals in more than 600 UK employers

regarding their attitudes to and experience of
employment legislation.
The majority of employers see employment law
The survey shows that it is difficult to generalise
about employment law as a whole; each piece of

legislation receives a very different response.
Anti-discrimination and family-friendly legislation
are perceived to be the most necessary types of

legislation, with more than 50% of employers
as making a positive contribution to employee
welcoming these Regulations. Far fewer employers
relationships and as increasing employees sense of
feel the same way about statutory trade union
fairness and trust in their employer. Less than one-
recognition, freedom of information, statutory
sixth of employers see employment law as getting
dispute resolution or informing and consulting with
in the way, or detracting from the real issues facing

their business.
A significant proportion of employers believe
employees.
The two specific pieces of legislation explored by
the survey on flexible working and working time
employment regulation can have a positive impact
produced very different sets of results. Flexible
in supporting their strategic HR and/or business
working is generally viewed positively by employers,
goals. More than half of all respondents believe that
while the response to working time is more
the laws on disability, sex discrimination, equal pay,
guarded.
race relations, flexible working and parental rights at

work make a positive contribution to the business.
HR policies, demonstration of senior management
The right to request flexible working

The majority of employers see the right to request
buy-in and training for line managers are the main
flexible working as a driver of good employment
means of genuinely effecting change.
practice, with only 15% suggesting that the
The main barriers to the effective implementation
of employment law are, first, the perception that
legislation is unnecessary red tape.

A large majority of employers find compliance
there is too much legislation and, second, a lack
with the legislation relatively straightforward. Of
of resources within organisations to devote to
those who have had problems, the main barrier
translating law into practice.
to compliance is that managers find it difficult to
Over half of respondents believe employment
manage employees on different flexible working
legislation is too complex. Just under half rate the
arrangements. There is also concern about
available guidance as poor. These attitudes are
precedents being set in relation to future requests.
relatively consistent across the public and private

sectors, and across organisations of all sizes.
In encouraging compliance with employment law
at all levels, the threat of sanctions is not widely

perceived to be effective.
The threat of employment tribunal claims doesnt
The majority of employers indicated that they
had seen some direct business benefits from the

legislation. Among those benefits are improvements
in staff retention, improved morale and a reduction
in costs (for example, through hot-desking).
Less than one-tenth of employers have faced
drive employers to comply with employment law,
grievance or disciplinary proceedings, or an
nor do employers see threats of disciplinary action
employment tribunal claim, as a result of the new
as being an effective way of ensuring compliance
legislation.
by their employees.
Working Time Regulations

Although just under one-third of employers indicate
that they have introduced policies in the last few

years aimed at reducing working hours, four-fifths
of employers report that working hours have in
fact stayed the same in their organisation since the
introduction of the Working Time Regulations, with
one-tenth reporting an increase.
Only 22% of employers report that the Regulations
have had a positive effect on their organisation,

with the remainder reporting the effect as negative
or negligible.
Just 17% of respondents say they feel under
pressure to reduce working hours, when reported.
Attitudes to employment law

The survey reveals that the issue of employment
Over half of respondents identify legislation protecting
regulation and red tape is much more complex than
part-time workers, the Transfer of Undertakings
is often reported. HR professionals regard much
(Protection of Employment) (TUPE) Regulations, the
employment law as necessary and, in many cases, as
Data Protection Act, the forthcoming legislation on
helping to achieve business goals.
age discrimination and the Working Time Regulations

as necessary.
In terms of specific legislation (see Table 1), a

clear majority of organisations surveyed see anti-
Scoring somewhat lower are the new laws on
discrimination laws as necessary. More than 70%
statutory dispute resolution, informing and consulting
of respondents cite the Disability Discrimination Act
with employees, freedom of information, and statutory
1995, the Sex Discrimination Act 1975, the Equal Pay
trade union recognition, each of which are seen as
Act 1970, the Race Relations Act 1976 and the laws
necessary by less than 50% of respondents.
relating to maternity and paternity leave and pay as

necessary.
Table 1: Employers (%) regarding the specified Regulations as ...
Necessary
Well drafted
and easy to
apply
Disability Discrimination Act
85
23
Sex Discrimination Act
81
29
Equal Pay Act
76
22
Race Relations (Amendment) Act
74
22
Parental rights at work (maternity and paternity leave and pay)
70
41
Part-Time Workers (Prevention of Less Favourable Treatment) Regulations
69
29
Transfer of Undertakings (Protection of Employment) Regulations
69
Data Protection Act
64
11
Age discrimination legislation (2006)
60
na
57
20
Employment Equality (Sexual Orientation) Regulations
57
23
Employment Equality (Religion or Belief) Regulations
57
22
Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations
53
23
Right to request flexible working
52
51
Statutory dispute resolution rules
46
26
Information and Consultation of Employees Regulations
38
19
Freedom of Information Act
34
Statutory union recognition
26
11
A significant proportion of employers believe
main sectors.
employment regulation can have a positive impact in

supporting their strategic HR and/or business goals
The TUPE Regulations, the statutory dispute resolution
(see Table 2).
rules, the Freedom of Information Act and the

statutory union recognition rules are least likely to be
More than half of all respondents believe that the
seen as contributing positively to an organisations
laws on disability, sex discrimination, equal pay, race
business goals.
relations, flexible working and parental rights at

work make a positive contribution to the business.
The survey shows that employers many red tape
Public sector employers are significantly more
concerns associated with employment regulation
likely to identify regulation as contributing to their
are caused by the clumsy drafting of legislation and
organisations business goals than the three other
inadequate guidance.
Table 2: Employers (%) regarding the specified Regulations as supporting the organisations strategic HR and/or
business goals
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
Disability Discrimination Act
57
48
55
60
71
Sex Discrimination Act
55
49
52
55
68
Equal Pay Act
54
46
55
55
67
Right to request flexible working
54
42
56
62
65
Parental rights at work (maternity

and paternity leave and pay)
54
44
59
53
62
Race Relations (Amendment) Act
50
41
48
47
60
Information and Consultation of

Employees Regulations
47
52
48
43
40
Part-Time Workers (Prevention

of Less Favourable Treatment)
Regulations
45
36
45
45
59
Age discrimination legislation

(2006)
45
41
44
49
51
40
39
37
42
47
Employment Equality (Religion or

Belief) Regulations
38
26
40
45
49
Employment Equality (Sexual

Orientation) Regulations
37
26
40
45
47
Data Protection Act
36
33
35
34
39
Fixed-Term Employees (Prevention

of Less Favourable Treatment)
Regulations
32
24
30
32
34
Transfer of Undertakings (Protection of Employment) Regulations
28
23
27
28
37
Statutory dispute resolution rules
31
35
31
26
30
Freedom of Information Act
16
12
13
15
26
Statutory union recognition
13
10
13
26
For 12 of the 16 pieces of legislation on which we
carries very significant weight within their organisation.
sought views, less than a quarter of respondents

believe they are well drafted and easy to apply (see
Employment law is seen as an essential standard
Table 1).
by 50% of survey respondents, with less than 15%

believing that law gets in the way or detracts attention
Only the laws on the right to request flexible working
from the real issues (see Table 3).
and parental rights at work Regulations are seen

as being relatively user-friendly (51% and 41%
Managing regulation is seen as a time-consuming
respectively).
activity. More than 40% of organisations see

employment law as requiring a lot of administration.
A significant minority of respondents (29%) indicate

their feeling that none of the employment legislation
Those in the public sector generally have more positive
is well drafted and easy to apply. Interestingly, these
attitudes to employment legislation than those in the
responses are relatively consistent across both the public
other three main sectors, with employers in this sector
and private sectors and across organisations of all sizes
most likely to regard regulation as a driver of good
with small employers (less than 250 employees) and
practice (75%) and least likely to see it as requiring a lot
large employers (more than 10,000 employees) giving
of administration (29%) and getting in the way (6%).
broadly similar answers in relation to most legislation.

Manufacturing and production organisations are most
The survey asked respondents how employment
likely to regard employment regulation as getting in the
regulation was regarded within their organisation. Two-
way (19%), followed by non-profit organisations (17%)
thirds of respondents identify employment laws role
and private sector services (15%).
as a driver of good employment practice as one that
Table 3: Statements ranked to show how employers regard employment law
Respondents (%) Respondents (%)

ranking statement ranking statement
at number one
in top three
Employment law drives good employment practice
30
67
Employment law is an essential standard
26
50
Employment legislation requires a lot of administration
43
The existence of law helps to start change by getting buy-in at

the highest level
40
10
37
Regulation gets in the way
14
Law detracts from the real issues
14
Employment law is gold-plated (we do more than we need to do)
14
Law provides a helpful reference
Implementing employment law is seen by three-fifths
just 14% believing the opposite. Respondents were split
of respondents as making a positive contribution
over whether employment regulation contributes to an
to employee relationships and by around the same
increase (23%) or a decrease (24%) in the number of
proportion (59%) as increasing employees sense
formal disciplinary and grievance cases. This is likely to
of fairness and trust in their employer (see Table 4).
be because of uncertainty over whether the law acts as
An important subsidiary benefit cited by 41% of
a deterrent to unacceptable behaviour in the workplace
respondents is that complying with the law helps
or whether the standard set by law means that a
reduce the number of employment tribunal claims, with
breach of policies and procedures is more likely.
Table 4: Does implementing the law ...
Total (%) of
respondents who
agree
... make a positive contribution to employee relationships?
60
... increase employees sense of fairness and trust in the employer?
59
... help reduce the number of employment tribunal claims?
41
... contribute to a reduction in the number of formal disciplinary and grievance cases?
24
... contribute to an increase in the number of formal disciplinary and grievance cases?
23
... increase the number of employment tribunal claims?
14
Impact of employment law on

business
Employment law is seen by respondents as the
regarded as a strong driver of change, with 9% of
key driver of change in employment practice and
employers rating this as their number-one factor and
behaviour in their organisation, with 36% rating it
34% including it in their top five.
their number-one factor and more than three-quarters

rating it in the top five (see Table 5). Pressure to
How organisations are perceived externally among
improve business performance is seen as the next most
investors, employees and customers is also seen as
significant driver of change in employment practice,
an important factor behind changes in employment
perhaps reflecting the recognition among employers
practice. Customer expectations, skills shortages/the
that the creation of a positive psychological contract
need to become employer of choice, and corporate
is a critical factor in an engaged and committed
image/reputation are all ranked highly.
workforce.
The threat of liability for failure to comply with a law
The potential impact of a change of management
is not seen by many as an important driver of change.
such as a new chief executive or HR director is
Four-fifths of respondents fail to rate it in the top
Table 5: Question: What are the main drivers of change in employment practice/behaviour in your organisation?
Employers (%) ranking

this as the most important
driver of change

this as a top-five driver of
change
The introduction of new employment law
36
76
The need to improve business performance
25
72
Changes to the top management team
34
Customer expectations
33
Skills shortages/the need to become an

employer of choice
42
Corporate image/reputation
36
Staff turnover levels
29
Threat of legal costs for non-compliance
20
Marketplace competition
14
The Corporate Social Responsibility agenda
13
Employee attitude surveys
23
National standards awards
17
Changes to labour market demographics (eg

ageing workforce)
15
Trade unions
15
Staff councils/forums
* less than 1%
five factors influencing change in their business. This
to 18% of manufacturing and production employers,
suggests that the carrot may be more effective than
14% of non-profit organisations and 15% of public
the stick in changing business behaviour.
sector respondents.
Also seen as relatively unimportant by respondents
Respondents from non-profit organisations are most
in driving change in employment practice are
likely to regard change to the top management team
trade unions (not rated in their top five by 85% of
as a top-five change factor 52%, compared to the
respondents) and staff councils/forums (not rated by
average score of 34%.
91% of respondents).
Public sector employers, perhaps not surprisingly, given
Sectoral breakdown
typically higher levels of union recognition, are most
Private services employers are considerably more likely
likely to regard the trade unions as a major driver
to rate customer expectations (56%) and marketplace
of change in employment practice/behaviour, with
competition (20%) among their top five drivers of
30% ranking this as a top-five factor. Respondents
change than respondents from the other main sectors.
from this sector are also most likely to rate corporate
Respondents in this sector are also more likely to see
image/reputation as a top-five change driver 44%,
the risk of fines/compensation payouts as a change
compared to a survey average of 36%.
factor, with 24% ranking this in the top five compared
10
How employment law is

translated into business practice
The survey asked two questions:
in employment practice (see Table 6). It is also the

factor most likely to be ranked highest by respondents
What are the best methods of translating changes
in employment legislation into changes in
(see Table 7) when considering how change is

implemented within their organisations.
employment practice/behaviour at work?

How does your organisation translate changes
However, below this there are some interesting
in employment legislation into changes in
differences between what respondents consider the
best ways of translating changes in employment

regulation into changes in employment practice and
Respondents were asked to rank their top five most
how change actually happens within respondents
effective methods for both questions.
organisations.
The results show that making changes to people
Demonstration of senior management buy-in is
management policies is regarded as the best way of
regarded as the second most effective way of
translating changes in employment law into changes
implementing changes in employment law, with 17%
Table 6: Question: What are best methods of translating changes in employment legislation into changes in
Employers (%)
ranking this as the
most important method
Employers (%)
ranking this as a
top-five method
Make changes to people management policies
24
64
Demonstration of senior management buy-in
17
57
Training for managers
11
68
Identify business benefits of meeting new

Regulations and raise awareness at board level
11
37
Effective internal communication
10
61
Consultation with managers before implementing

change
48
Identify risks of not complying and raise awareness

at board level
34
Strong leadership
31
Training for staff
37
Work with trade unions
22
Work with staff councils/forums
18
Champions role/models
Threat of disciplinary action
* less than 1%
11
of respondents ranking it as the key change factor and
intervention and 43% ranking it in their top five. But it
57% ranking it in their top five. But when considering
is regarded as only the seventh most effective change
how employment regulation is actually implemented
method 5% rank it at number one and 34% place it
within respondents organisations, it is ranked seventh,
in their top five.
with only 6% citing it as their number-one ranked

method and 34% including it among their top five.
Effective internal communication is seen as critical both

in theory and in practice. In both cases, the results show
Training for managers is ranked as the third most
10% of respondents regarding this as their number-
effective way of translating changes in employment
one method of implementing changes in employment
law into changes in behaviour in the workplace,
regulation and 61% ranking it in their top five.
but it is only seen as the fifth-ranked method

of implementing change within respondents
Training for staff, working with trade unions and staff
organisations.
councils/forums, and using champions/role-models are

among the factors that are less likely to be used within
In practice, respondents are more likely to highlight
respondents organisations to implement changes in
the risks of not complying with regulation and
employment Regulations or to be ranked as effective.
then to raise awareness at board level as a way

of implementing change in their organisation
The threat of sanctions is not widely perceived to
than they are to rate it an effective method of
be a successful way of implementing changes in
implementing change. This is the third most likely
employment law, with more than 90% of respondents
method of implementing change within respondents
failing to rank threat of disciplinary action in their
organisations, with 10% citing it as their number-one
top five effective methods of implementing change or
Table 7: Question: How does your organisation translate changes in employment legislation into changes in
Employers (%)
ranking this as the
most important method
Employers (%)
ranking this as a
top-five method
Make changes to people management policies
38
78
Effective internal communication
10
61
Identify risks of not complying and raise awareness

at board level
10
43
Identify business benefits of meeting new

Regulations and raise awareness at board level
10
37
Training for managers
66
Consultation with managers before implementing

change
38
Demonstration of senior management buy-in
34
Strong leadership
21
Work with trade unions
25
Training for staff
34
Work with staff councils/forums
18
Champions role/models
Threat of disciplinary action
* less than 1%
12
Table 8: Question: How well does your organisation generally implement changes in employment law?
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
Meets the minimum standard
57
71
61
45
35
Goes beyond what is required
41
27
38
49
65
Fails to meet minimum standard
Not stated
identifying this as an actual method of implementing
Obstacles to implementation
change used in their organisations.
Four important barriers to the effective implementation

of employment law are cited by over half of the
When implementing employment law, perhaps
employers surveyed (see Table 9):
unsurprisingly, the vast majority of employers say that

they meet the standards imposed by the law, with
too much legislation ranked as a barrier by 63% of
some 41% indicating that their organisation goes

beyond what is required (see Table 8). The public sector
respondents
lack of resources (staff/budget/time) ranked as a
is most likely to go beyond what is required by law,

with nearly two-thirds (65%) of respondents claiming
barrier by 61% of respondents

entrenched attitudes among managers ranked as a
to do so. Respondents in the manufacturing and

production sector are least likely to go beyond the basic
barrier by 58% of respondents

lack of senior management buy-in ranked as a
requirements of law; just over a quarter (27%) indicate
barrier by 50% of respondents.
that they do.
Table 9: Question: What are the main obstacles to implementing changes in employment law effectively?
Employers (%)
ranking this as the
most important
obstacle to change
Employers (%)
ranking this as a
top-five obstacle
to change
Lack of resources (staff/budget/time)
19
61
Lack of senior management buy-in
18
50
Too much legislation
16
63
Entrenched attitudes among managers
13
58
Lack of awareness of changes to legislation
10
38
Inadequate guidance from the Government
43
Entrenched attitudes among the workforce
33
Entrenched attitudes in society as a whole
19
Inadequate consultation over proposed employment law
31
Apathy
32
It is cheaper to be reactive and settle out of court/pay

compensation
* less than 1%
13
Some interesting sectoral differences arise in response
250 employees) and large (over 5,000 employees)
to the question answered in table 9:
employers in relation to their attitudes to: lack

of resources; the feeling that there is too much
An entrenched attitude among managers is almost
legislation; inadequate consultation on the legislation;
twice as likely to be a problem for organisations with
and inadequate guidance from Government.
less than 250 employees than for organisations with

over 5,000 employees.
Nearly two-thirds of respondents agree that
Respondents in the manufacturing and production
employment legislation is too complex and 45% believe
sector are most likely to cite entrenched attitudes
that the available guidance to help employers meet
among the workforce as an obstacle to effectively
their obligations is poor (see Table 10). These problems
implementing changes 43% rank this as a top-five
are compounded by the lack of time available to devote
obstacle, compared to the survey average of 33%.
to employment law issues 56% of those surveyed
Lack of resources is a bigger problem in the public
identify this as an issue.
and non-profit sectors than in the private sector. This

is in spite of the fact that the results show that the
Line managers inability to implement changes to
public and voluntary sectors are more likely to have
employment regulation in the workplace is regarded as
a training budget to ensure employees are aware of
an issue by a third of employers. Almost a quarter of
their obligations under employment law than those
respondents agree that a lack of interest in employment
in the private sector (see Table 11).
regulation at board level undermines the effective
There is little difference between small (under
implementation of new legislation.
Table 10: Employers (%) agreeing with the following statements
14
Statement
All
Manufacturing
and production
Legislation is too complex
59
66
58
55
53
There is not enough time to devote to

employment law issues
56
61
49
55
65
Available guidance is poor
45
41
48
58
44
Our line managers dont implement changes

in employment law effectively
33
30
31
47
33
A lack of interest in employment

regulation at board level undermines
effective implementation of new legislation
23
25
24
36
17
Private
Non-profit
Public
services organisations services
Training
Nearly half of all organisations dont have a training
In cases where training is provided, the HR department
budget to ensure their workforce is aware of their
is most likely to receive it, with 84% of respondents
obligations under employment law (see Table 11).
reporting that members of this function are trained
Manufacturing and production organisations are least
to ensure changes to employment legislation are
likely and the non-profit sector is most likely to have a
understood and implemented across the organisation.
training budget for this purpose.
Line managers are the next most likely to receive

training (72%), followed by senior management (54%)
and all employees (26%).
Table 11: Question: Does your organisation have a training budget to ensure employees are aware of obligations
under employment law?
Respondents (%)
All
Manufacturing
and production
Private services
Non-profit
organisations
Public services
Yes
51
46
47
60
59
No
47
52
51
34
38
Not stated
15
Promoting the importance of

compliance
HR professionals are more likely to promote the
Just over a third of respondents encourage compliance
importance of compliance within their organisations in
by emphasising that it will ensure that employees/the
a positive manner before highlighting the dangers of
organisation keeps out of trouble, and just under half
breaching employment law.
of respondents highlight the fact that it is a necessary

obligation.
Four-fifths of respondents promote compliance with

employment law as a way to encourage line managers
More than 80% of HR professionals find employment
to adopt good practice. Complying with employment
regulation helpful when attempting to influence
regulation is seen by nearly half (48%) of respondents
managers in the organisation to adopt positive
as being an important step towards becoming an
employment practices.
employer of choice (see Table 12).
Table 12: Question: Does HR promote compliance with employment law within your organisation as
Employers (%) considering the requirements of meeting forthcoming

employment regulation in their business planning
16
All
Manufacturing
and production
Private services
Non-profit
organisations
Public services
a way to encourage line

managers to adopt good
practice?
80
79
77
75
86
an important step to
becoming an employer of
choice?
48
42
49
51
54
a necessary obligation?
47
52
48
38
45
a way of keeping out of

trouble?
36
35
36
47
34
The impact of employment

regulation on strategy and
business planning
Complying with employment law is regarded as a
manufacturing and production employers least likely
strategic issue by half of all respondents, with a third
(45%) to regard employment regulation compliance as
reporting that compliance is sometimes a strategic
a strategic issue.
issue and 16% that compliance with employment

regulation is never categorised as a strategic matter for
More than a quarter of employers always consider the
their organisation.
requirements of meeting forthcoming employment

regulation in their organisations business planning, and
Public sector employers (66%) are most likely and
55% of respondents sometimes do so (see Table 13).
Table 13: Question: Is meeting the requirements of forthcoming employment law included in your organisations
business planning?
Employers (%) considering the requirements of meeting forthcoming

employment regulation in their business planning
All
Manufacturing
and production
Private services
Non-profit
organisations
Public services
Always
26
17
27
34
35
Sometimes
55
61
55
43
56
Rarely
14
15
15
15
Never
17
Employment tribunals and the

risk of litigation
A large majority of respondents indicate that that the
Just over a quarter (26%) of employers have never
risk of employment tribunal claims has an influence on
faced an employment tribunal claim and 40% have
management behaviour, with 51% stating that it has
had no claims in the past 12 months. These statistics
a strong influence and 37% a marginal influence (see
rise to 50% and 65% respectively when looking at
Table 14). Manufacturing and production employers
employers with less than 250 employees. Nearly 70%
and non-profit organisations are less likely than
of organisations have received one or no claims in the
employers in the other two main sectors to see the
last year, with only 10% receiving six or more.
risk of tribunal claims as having a strong impact on

management behaviour.
Most organisations consider each tribunal claim on its

merits in deciding whether to contest it or not, with
Table 14: Question: How much impact does the risk

of employment tribunal claims have on influencing
management behaviour?
Employers (%)
Strong influence
51
Marginal influence
37
Little influence
12
a significant minority (12%) contesting every claim

as a matter of principle. Organisations in the nonprofit sector are most likely to settle every case, with
manufacturing and production employers most likely
to fight.
The level of tribunal claims has remained relatively
static in the last 12 months, with 16% of respondents
reporting an increase, 19% a decrease and 51%
reporting no change. The average number of
Organisations surveyed were asked a number of
employment tribunal claims in the last year per
questions about the amount of employment litigation
respondent organisation was 2.5.
faced by their organisations and their attitudes

towards it.
18
Keeping up to date
Nearly all (93%) of respondents indicate that they
The secondary sources of advice and assistance
have someone (either internal or external) who is
disclosed by the survey responses are perhaps more
responsible for ensuring that their organisation is aware
surprising (see Table 15). Very few organisations (less
of forthcoming legislation. Again, in nearly all cases
than 5%) indicate that they use the Equal Opportunities
(92%) the HR department takes responsibility. In all, 6%
Commission, the Disability Rights Commission, the
of respondents organisations have a senior manager
Commission for Racial Equality or the Employers
who takes responsibility for ensuring the organisation is
Forum on Age as sources of advice. More commonly
prepared for forthcoming legislation, 10% draw on the
used are the CIPD, regarded as the top secondary
services of an in-house lawyer, and 16% of respondents
source, followed by in-house expertise within the HR
use an external law firm.
department, the Advisory, Conciliation and Arbitration

Service (ACAS), external employment law firms, and the
HR trade press.
Case study: Keeping up to date

Paul Atkinson, Employee Relations Manager at Wood Group Engineering (North Sea) Ltd, a company
that provides engineering and operations support expertise to the oil and gas industry, attributes the low
usage of equality commission websites to poor advertising and promotion. He also thinks the websites
themselves are not particularly user-friendly for business users.
Atkinson has a strong involvement in employers groups, such as the Offshore Contractors Association
(OCA), where he chairs committees that produce bulletins to help members keep up to date with
developments in legislation and case law. He also takes part in consultation exercises, and therefore makes
use of government departments websites and publications.
The equailty commission websites would be much improved, Atkinson suggests, if they were all
amalgamated into one comprehensive site, with a stronger emphasis on the needs of employers. While
his active role in employers groups makes it relatively easy for him to understand new developments in
employment law, he finds the guidance issued with new legislation of little use, and believes it would be
more helpful if it were written by authors with greater experience of the problems faced by employers
when implementing new requirements.
Overall, Atkinson believes there is too strong a focus on social needs over business needs and feels that
the genuine need for legislation that existed in the early 1990s has now been resolved. He worries that
increasing the burden on employers will make them more and more cautious about employing.
19
Table 15: Question: What organisations/resources do you use to seek advice on new legislation and on how to meet
any new obligations? (respondents were asked to rank their top five choices)

this as the most important
information source

this as a top-five
information source
CIPD
12
57
In-house expertise within the HR department
21
50
Employment law firm
16
48
ACAS
46
HR trade press
44
Government departments websites/publications
44
Legal helplines/directories
26
Employer organisations
19
In-house employment lawyer
13
Courses/conferences
20
Colleagues/peers
24
Employer networking groups
19
HR consultants
Business Link
Equal Opportunities Commission
Disability Rights Commission
Commission for Racal Equality
Employers Forum on Age
* less than 1%
Case study: Keeping up to date

At Interbrew UK, a subsidiary of InBev, the worlds largest brewer by volume, Employee Relations Manager
Bob Stannard feels that the intricacies of employment law often make it difficult to take a totally confident
position on an issue. He also finds that on occasions expert advice taken can be too qualified to be of real
use in clarifying the confusion surrounding difficult pieces of law, where case law is continually changing
the legal landscape.
In order to stay up to date with changes in employment law, Bob relies on personal research using
specialist publications like the CIPDs People Management, as well as general news sources and more
detailed investigation when and where required, including government websites such as those of the DTI,
the DWP and ACAS. For advice on specific problems, he will call Croners Employment Law telephone
helpline and/or refer to Interbrew UKs legal advisers for advice on more complex issues.
20
The right to request flexible

working
This section considers how employers responded to
The majority of organisations (52%) had developed
one recent piece of legislation: the right to request
new policies before the legislation came into force to
flexible working. This law came into force in April
ensure compliance, and a significant minority (21%)
2003 as part of the Employment Act 2002 and gave
indicated that they already had policies in place which
parents with young children the right to request
met the requirements of the new legislation.
flexible working. Respondents were asked to consider

how the Regulations came to their attention, how they
Attitudes to the new right
responded to them, and the impact the Regulations
The survey asked about attitudes towards the right
have had on the organisation and the workplace.
to request flexible working (see Table 16). The right is

seen as a driver of good practice by over half (55%) of
Awareness of the new right before its implementation
respondents, but attitudes vary significantly between
was high, with 98% of respondents aware of the
the sectors. Almost three-quarters (74%) of public
proposed law prior to April 2003. However, in follow-
sector respondents see the right in this way, whereas
up interviews, some respondents indicated that,
only two-fifths (41%) of manufacturing organisations
although the existence of the law was well publicised,
agree.
there was confusion about what it would mean in

practice. In particular, some believed that the law gave
Only 14% of respondents feel that the legislation is
employees the right to work flexibly, rather than simply
unnecessary red tape, but, again, there is sectoral
the ability to make a request. The most common
variation, with only 5% of public sector respondents
sources of information about the new law were the
seeing it in this way, compared with 23% of
HR trade press (cited by 69% of respondents), the
manufacturing respondents. Most employers (71%),
CIPD (67%), government departments websites/
however, say that they have found it easy to comply
publications (47%) and employment law firms (43%).
with the Regulations, with only 26% indicating they
Table 16: Question: Do you regard the right to request flexible working legislation as ...
Respondents (%)
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
a driver of good practice?
55
41
56
51
74
well drafted and easy to apply?
18
22
16
23
16
unnecessary red tape?
14
23
12
15
complicated and difficult to apply

in practice?
14
16
15
11
21
Case study: Attitudes to flexible working

An HR professional working for a chain of retail stores comments that, while recent changes to
employment law are based on sound principles and address a definite need, some of the changes have
been impractical to apply, especially in the retail sector. In particular, it has been hard to balance the need
to provide staffing during set hours when stores are open, against a right to request flexible working
hours.
had had some difficulty. These results are relatively
Regulations is that managers find it hard to manage
consistent across all sectors and organisations of
employees on different flexible working arrangements.
all sizes. The main reason cited by those employers
Setting precedents for the future and resentment from
experiencing difficulty in complying with the
co-workers are also concerns (see Table 17).
Table 17: Question: If it has proved hard to meet the Regulations requirements, why was this?
Respondents (%)
Statement
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
Managers find it hard to manage employees

on different flexible working arrangements
63
65
65
70
58
There is resentment from workers who dont

have young children that they are not entitled
to request flexible working arrangements
57
56
53
80
58
If you say yes to one request you have to say

yes to many more
50
40
62
40
42
Shift system means its hard to build on

flexibility over individuals hours
44
63
34
50
33
Managers dont trust staff to work flexibly/

independently
26
17
28
30
39
10
10
Other reasons
22
Impact of the new right
of employers have faced employment tribunal
Respondents were also asked about the business
proceedings arising from the flexible working
benefits brought about by the new right (see Table
legislation. Employers in the services sector are
18). Divisions by sector are apparent in response
proportionately more likely to have faced disciplinary/
to this question. Overall, 38% of respondents feel
grievance proceedings or an employment tribunal than
that there has been no business benefit from the
employers in other sectors, although non-profit and
legislation, with the figure reducing to 29% among
public sector workers are the most likely to make a
public sector employers and increasing to 48% among
request.
manufacturing organisations. However, the majority

of respondents indicate that at least some benefit has
Table 19: Question: How many requests have you
received under the right to request legislation?
resulted from the legislation. Among benefits felt by

respondents were: improvements in staff retention;
improved morale; and a reduction in costs (eg through
hot-desking).
In practice, most employers have received less than ten
requests under the new legislation (see Table 19).
The Regulations have led to disciplinary or grievance
Number of requests
Respondents (%)
No requests
18
110 requests
57
1150 requests
10
50100 requests
More than 100 requests
cases for only 9% of employers and only 2%
Table 18: Question: Have there been subsequent business benefits to the introduction of the right to request flexible
working?
Respondents (%)
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
No benefits
38
48
35
38
29
Improvement in staff retention
27
23
31
26
26
Improved morale
20
19
21
23
23
Reduction in costs eg through hot-desking
15
17
15
21
10
Reduced employee absence
11
17
18
Recruitment incentive
10
27
Other
23
Case study: Help the Aged

Tracey Huckfield, HR manager at the national charity Help the Aged, became aware of the right to
request legislation well in advance of its implementation. She was alerted through update emails received
from external law firms and the CIPD.
Historically, Help the Aged had taken an ad hoc approach to flexible working requests. However, the
introduction of the new legislation created a need for a more formal policy to be put in place.
The policy was drafted in-house, using as a key resource the information and sample forms provided on
the DTI website. It very much mirrors the statutory requirements of the right to request legislation and
is restricted to parents with young children. The policy is accessible to all employees on the organisations
intranet site.
Since the legislation came into force, the organisation has received around a dozen requests, the vast
majority of which have been accommodated. When its not possible to accommodate an employees
exact request, the organisation works with the individual to try to reach a compromise solution which is
acceptable to both employee and employer. Most requests have been from women, although there have
been two requests received from male employees, and most have been for a reduction in working hours.
Huckfield says that, for parents working in the organisation, the legislation has had a very positive effect.
While there has been little impact on recruitment, it has helped significantly with staff retention. She
notes, however, that there has been some resistance from the non-parents in the organisation, some of
whom have commented that its unfair that the right to make a flexible working request under the formal
policy is not open to them.
24
It is timely, with the European focus on the future of

the 48-hour working week, to consider how employers
Table 21: Question: Since the Working Time

Regulations were introduced in 1998, have working
hours in your organisation...
in the UK have responded to the Working Time

Regulations since they were introduced in 1998. This
Respondents (%)
section explores the impact the Regulations have had on

employers and on hours worked within organisations.
Impact of the Regulations
... increased?
10
... decreased?
... stayed about the same?
80
Just under one-third (29%) of employers say that they

have introduced policies in the last few years aimed
at reducing working hours for a significant number
Of the employers that have tried to reduce working
of employees (see Table 20). This figure rises to 64%
hours, less than half (45%) have done so as a result of
of employers with more than 10,000 employees and
the introduction of the Working Time Regulations. The
41% of those with more than 5,000. Despite this, 80%
remainder have been driven by other concerns.
of employers report that working hours within their

organisation have stayed roughly the same since the
The survey asked respondents to rate the impact of the
introduction of the Working Time Regulations in 1998,
Working Time Regulations on their organisations (see
and 10% of organisations report an increase in working
Table 22). A negative impact was more widely reported
hours (see Table 21).
among non-profit organisations and those employing
Table 20: Question: In the last few years, has your organisation adopted policies or practices designed to reduce the
working hours for a significant number of employees?
Respondents (%)
Number of employess
All
Less than
250
251500
Yes
29
21
No
70
1
Not stated
5011,000
1,001
5,000
5,001
10,000
More than
10,000
28
30
37
41
64
77
72
69
63
59
32
Table 22: Question: How would you describe the influence of the Working Time Regulations on your organisation?
Respondents (%)
All
Manufacturing
and production
Private services
Non-profit
organisations
Public services
Positive
22
18
21
11
31
Negative
57
58
59
66
51
Negligible
20
23
19
23
17
25
less than 250 people, whereas the most likely to report
from respondents organisations are not affected by the
a positive effect were those in the public sector.
48-hour working week because they have opted out.

In all, 60% of respondents provided information on the
Use of collective and workforce agreements
proportion of their employees who are not affected by
The survey shows that collective and workforce
the 48-hour working week because they have opted
agreements are not widely used by UK employers.
out, with 31% indicating they did not know and 9%
Only 11% of employers have a collective agreement
not responding to the question (see Table 24).
with a trade union and 9% a workforce agreement.

The primary purpose of the collective and workforce
Sectoral differences
agreements that do exist is to extend the averaging
Employees in the manufacturing and production
period for the 48-hour working week.
sector are most likely to have signed the opt-out, with

an average of 65% having done so. Almost 30% of
Monitoring working hours
respondents in this sector indicate that between 91%
Over four-fifths (84%) of employers record the working
and 100% of their employees have signed the opt-
hours of at least some of their staff, with employers
out. Just 9% of employers in this sector report that no
in the manufacturing sector the most likely to record
employees have signed the opt-out. Among private
the working hours of their employees. Of those who
services organisations, on average just over 50% of
do record working hours, self-completion of records is
employees have signed the opt-out. A quarter of
most popular, except in the manufacturing sector where
respondents in this sector reveal that between 91%
clocking on/off by machine is (perhaps unsurprisingly)
and 100% have signed the opt-out, with 17% of
the method of choice (see Table 23).
organisations indicating no employees have signed the

clause. Among non-profit organisations, an average
Use of the opt-out
of 20% of employees are likely to have signed the
Across all sectors, an average of 50% of employees
opt-out, with just 4% of respondents indicating that
Table 23: Question: If you record the working hours of employees, how do you do it?
Respondents (%)
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
Self-completion of record
48
30
47
67
72
Clocking on/off by machine
42
72
30
14
26
Fixed hours of work
23
16
28
26
23
Some other means
16
19
24
20
Table 24: Question: What proportion of your employees (as a percentage) are not affected by the Working Time
Regulations because they
Average percentage of employees in respondents organisations
26
All
Manufacturing
and production
Private
services
Non-profit
organisations
Public
services
have opted out?
50
65
52
20
18
are autonomous workers?
10
11
12
10
are excluded from the scope of

the Directive?
12
10
11
19
15
between 91% and 100% of employees have done
and from trade unions in the public sector (see Table 25).
so and 23% reporting that no workers have signed

the clause. The opt-out has been signed by 18% of
Of the 17% of employers that feel under pressure to
public services employees, according to respondents,
reduce working hours, some 54% consider that they
with 18% indicating that no employees have signed
are quite likely to take steps to do this in the next 18
the clause and 3% reporting that between 91% and
months, with the figure rising to 69% in the public
100% of workers have.
sector (see Table 26).
The future
However, given the overall employer attitudes to
Respondents were asked whether they feel under
working time regulation as disclosed by the survey,
pressure to reduce working hours for their employees.
and the seemingly minimal pressure being exerted by
Only 17% indicate that they do, with the public sector
employees and trade unions to reduce working hours,
and employers with over 1,000 employees most likely
it will be interesting to see how the law develops over
to feel such pressure.
the next few years. Working time is an area that has

recently been given specific attention at the European
Among the employers that feel pressure to reduce
level, where the debate over the future of the opt-out
working hours, the pressure was most likely to come
is set to continue. The survey suggests that this will
from employees or other sources in the private sector,
not be warmly received by UK businesses.
Table 25: Question: If you feel under pressure to reduce employees working hours, is this pressure from ...
Respondents (%)
All
Manufacturing
and production
Private services
Non-profit
organisations
Public services
... employees?
44
41
47
56
38
... trade unions?
28
22
17
11
55
... other?
47
52
44
33
48
Table 26: Question: If you feel under pressure to reduce employees working hours, how likely is it that you will make
some move in this direction in the next 18 months?
Respondents (%)
All
Manufacturing
and production
Private services
Non-profit
organisations
Public services
Quite likely
54
44
42
56
69
Not likely
22
26
28
33
17
Dont know
23
30
28
11
14
27
Conclusions
The survey findings support the CIPDs position on
Our research finds that HR policies are an effective
employment legislation, emphasising that regulation is
way of implementing employment legislation and that
not regarded by organisations as all good or all bad.
many employers already go beyond the minimum

requirements, showing that good people management
The results show that regulation has had a significant
in areas such as flexibility is good for the business as
effect on employment practice and that HR
well as employees.
professionals feel that the impact is generally more

positive than negative.
It also has to be recognised that there is a limit to what

employment regulation can achieve in practice. Areas
Many organisations find employment legislation can
that need to be addressed if changes to employment
help them achieve their business goals and build trust
legislation are to be translated into changes in
and positive relationships with employees.
employment practice are line manager abilities and

training to support implementation.
The survey reveals that negative attitudes are mostly in

response to badly drafted and poorly communicated
The Government, as well as bodies such as the CIPD,
legislation, with inadequate guidance often stemming
can play an important role in helping to encourage best
from inadequate consultation.
practice, rather than using the threat of legislation to

impose change.
Employment regulation is seen to be more effective

where there is an element of flexibility eg the right to
request flexible working, rather than through the use of
a one size fits all model.
28
Survey methodology
This survey was conducted by the CIPD and Lovells in
In all, 601 organisations responded by the deadline, a
March 2005.
response rate of 5.8%. Follow-up calls were then made

to a small sample of respondents who had indicated
A total of 10,300 survey questionnaires were sent out
that they were happy to discuss their answers in more
to a representative cross-section of organisations of all
detail. This further information was used to help explore
sizes (ranging from those with fewer than 25 people in
and clarify trends highlighted in the survey data.
their workforce to those with more than 25,000) and all

industry sectors across the public, private and non-profit
In presenting the statistics in this report, the results have
sectors.
been rounded, which, in some cases, may mean the

total responses dont always add up to exactly 100%.
29
Notes
30
Notes
31
Notes
32
We explore leading-edge people management and development issues through our research.
Our aim is to share knowledge, increase learning and understanding, and help our members
make informed decisions about improving practice in their organisations.
We produce many resources on people management and development issues including guides,
books, practical tools, surveys and research reports. We also organise a number of conferences,
Issued: June 2005 Reference: 3404
events and training courses. To find out more please visit www.cipd.co.uk
Chartered Institute
of Personnel and
Development
151 The Broadway London SW19 1JQ

Tel: 020 8612 6200 Fax: 020 8612 6201
Email: cipd@cipd.co.uk Website: www.cipd.co.uk
Incorporated by Royal Charter Registered charity no.1079797
Chartered Institute of Personnel and Development 2005

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Survey report June 2005

Summary of key findings

Attitudes to employment law

The impact of employment law on employment practice

How regulation is translated into practice

How HR promotes the importance of compliance

The impact of employment regulation on strategy and business planning

Employment tribunals and the risk of litigation

The right to request flexible working

The Working Time Regulations

Employment and the law

Employers in the UK have had to implement a range

whether it is presented and promoted in a clear and

of new employment legislation from both the UK

accessible format. Just as important is how changes to

Government and Europe over the last few years. Some

employment law translate into changes in employment

estimates put the cost to UK businesses of meeting

practice and behaviour in the workplace.

regulation introduced between 1997 and 2004 as high

In what is thought to be the most comprehensive

The new legislation has included the right to request

employment practice teamed up to canvass the views

flexible working for parents with young children,

of those on the front line the HR professionals who

extended maternity and paternity provision, new

are responsible for identifying new legislation, then

anti-discrimination laws and the Working Time

ensuring it is implemented within their organisations.

Regulations. Legislators explain these interventions as

This Survey Report looks generally at attitudes to

to boost productivity and as a necessary response to

employment law and regulation, then goes on to

demographic and social change, such as an ageing

consider the impact of two specific pieces of law: the

population, changing family structures and shifting

right to request flexible working (introduced under

the Employment Act 2002) and the Working Time

However, there is a lack of agreement as to whether

The aim of the survey was to help us understand what

practice or creates an unnecessary regulatory burden

employers really think about employment law to get

on UK businesses. An important aspect of this debate is

behind the headlines and identify the issues and themes

about how well drafted employment legislation is and

that matter in the real world to real organisations.

Employee Relations Adviser

Partner and Head of the Employment Group

Employment and the law

Summary of key findings

General employment law findings

professionals in more than 600 UK employers

The survey shows that it is difficult to generalise

about employment law as a whole; each piece of

are perceived to be the most necessary types of

as making a positive contribution to employee

welcoming these Regulations. Far fewer employers

relationships and as increasing employees sense of

feel the same way about statutory trade union

fairness and trust in their employer. Less than one-

recognition, freedom of information, statutory

sixth of employers see employment law as getting

dispute resolution or informing and consulting with