MILLIONS OF British businesses are unwittingly breaking the law by failing to keep up with EU regulations, and could be subject to huge fines, it was revealed today.
MILLIONS OF British businesses are unwittingly breaking the law by failing to keep up with EU regulations, and could be subject to huge fines, it was revealed today.
More than one million small and medium-sized businesses* admit they're not sure they are complying with up-to-date EU laws, according to independent research commissioned by leading insurer Norwich Union.
And three out of four bosses say they haven't made any changes to their business practices as a result of EU laws.
Businesses in the manufacturing industry are the worst offenders - almost nine out of ten revealed they have never made any changes - compared to businesses in the retail sector, where over a third have implemented changes as a result of EU law.
Norwich Union's 'EU Outlaws' research also reveals:
- Half of bosses have never made a risk assessment to identify and control safety hazards to their work force - although this is a requirement under EU law
- Three out of four businesses don't even bother to find out information about EU law or keep up with changes in legislation
- Of those, three quarters say they're too busy to do so or it's not a priority
- Three in five bosses (61 per cent) think the UK is more stringent at enforcing EU laws than other countries.
Peter Knowles, head of small commercial markets at Norwich Union, said: "Businesses are under increasing pressure to maintain their profits in an increasingly competitive world, as well as coping with the day-to-day running of their business.
"Hundreds of EU laws are passed each year affecting every area of business on every level. Legislation is constantly changing in areas such as employment, health, safety and fire regulations. If worrying about what's happening in the EU isn't a priority and businesses don't keep on top of these changes, they could be breaking the law, and putting their business and staff at risk."
Norwich Union has produced a free guide - called 'Unravelling European Business Law' - which outlines the main areas of legislation about employment, health, safety and fire, as well as giving information on how EU laws affect businesses. The guide also provides a list of website addresses where further help and advice can be obtained.
Peter Knowles added: "Three out of four employers told us it was very difficult, if not impossible, to get hold of information about changes to EU regulations.
"This guide gives businesses access to the information they need at their fingertips so they can find out how EU law affects them - and feel confident they are not breaking the law. "
Stephen Alambritis, from the Federation of Small Business, which has endorsed Norwich Union's campaign, said: "It's not surprising that research shows that British businesses place little priority on keeping abreast of the latest EU laws when it comes to the day-to-day running of their business operations. But, ignorance about developments in EU regulations may prove to be far more costly than imagined, with heavy fines up to Ł50,000, a distinct possibility for non-compliance.
"We support guides, such as the one produced by Norwich Union, which provides small businesses with plain English information and advice about EU laws and legislation."
For a free copy of Unravelling European Business Law ring Freefone 0800 0280939
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Notes to Editors
*Source: Department of Trade and Industry: Small and Medium Enterprise statistics (SME) for the UK, 1999 and independent research commissioned by Norwich Union.
Norwich Union commissioned an independent survey of 250 SMEs. The survey was carried out in May 2001
Norwich Union Insurance is the UK's largest general insurer - insuring 700,000 businesses across the UK. It provides a wide range of covers from commercial property to motor trade.
CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK's largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world's sixth largest insurer based on gross worldwide premiums.
CGNU's principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł210 billion.
From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
Norwich Union's news releases are available on this website
For further information or to arrange an interview contact Matthew Buchanan or Anja Kueppers at QBO on 020 7379 0304, or Liz Nicholson or Jenny Chapman at Norwich Union on 08703 666868