KIRKLEES companies will be hit by “staggering costs” as a raft of new employment laws come into force over the next four years, a leading business group warned today.

The British Chambers of Commerce estimates that businesses in the Yorkshire region will have to pay out as much as £1.67bn between 2011 and 2015 – with the national bill totalling £22.8bn.

Some of the most costly regulations to come into effect include two measures to be introduced this year and a third to come into force in 2012.

Firms will be hit by seven major changes in 2011 alone, including the Agency Workers Directive, which the BCC said will cost business £1.5bn.

Giving workers the right to request time off to train will cost £174m a year, while pensions reforms will have an annual recurring cost of £4.5bn.

The BCC said it would be difficult for private sector businesses to create the jobs needed to mitigate the effects of public sector cutbacks if the Government continued to make it expensive to employ people.

Stephen Leigh, head of policy and representation at the Lockwood-based Mid Yorkshire Chamber of Commerce, said: “It is unfortunate that despite previous assurances from the Government that they would stem the flow of new employment legislation, they have in fact continued to add to it.

“We are disappointed that the coalition has so far been unable to match their rhetoric with some positive business-friendly measures which will create a business environment to help encourage investment and create new employment opportunities.

“While the proposed reform of the employment tribunal system is welcome news, the savings will be small compared to the potential costs of this continual raft of additional burdens on British businesses.”

BCC director-general David Frost said: “The Government claims business growth is top of the agenda, yet UK firms will be hit with huge costs once these new regulations come into force.

“Companies cannot generate growth and create jobs when they are facing a £23 bn bill just to implement new employment legislation. Unless the Government reduces this kind of red tape, we will continue to have high levels of unemployment and could end up derailing the recovery.”