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Businesses 'tied up by red tape' in employment law

Tuesday 08 November 2011 by Gina Le Prevost

Companies looking to recruit people to finance jobs may be among those caught up in government over-regulation, as one body has criticised the amount of bureaucracy in employment law.

Alistair Tebbit, spokesman for the Institute of Directors, said legislation was an issue likely to hinder businesses across all sectors and his organisation would like to see rules relaxed in the area.

"There is a range of proposals … on the table at the moment which will add to red tape," he stated, despite the government saying it would like to stop the increase in regulation.

He suggested plans such as abolishing the default retirement age and extending parental leave as examples of proposals likely to increase the amount of administration employers would have to deal with.

Abandoning schemes such as these would be an "obvious stepping stone" towards cutting red tape, Mr Tebbit stated.

A report from the Federation of Small Businesses released last month estimated the regulatory burdens imposed by governments are a factor for over half of the 1.7 million companies in the EU that fail ever year.