Over 70% of brokers fear tribunals from tough new employment legislation

Brokers could be hit with high litigation costs for failing to comply with complicated employment law, according to a national survey.

And 82% think the situation is likely to get worse with new legislation due to be introduced next month, which will increase paperwork and red tape, said the Peninsula Research Agency.

Of 643 insurance brokers polled nationwide, Peninsula found 72% feared they could find themselves in an employment tribunal for failing to comply. The report revealed 41% of brokers failed to comply fully with employment legislation and 50% of brokers took short cuts to avoid lengthy paperwork.

Peninsula corporate development manager Russell Guest said: "Brokers take short cuts in order to avoid complying with the law. It's natural and a great percentage of businesses in the UK do the same, but they are opening the door to litigation claims from employees."

The Broker Network managing director Grant Ellis said: "MPs should be fighting the huge burden placed on employees on our behalf."

A Biba spokesman said: "We will look at offering training for our members on how to make employment law simple and effective."

CBI enterprise head Matthew Fell supported a plan for one date for all changes to employment legislation.