Calls for employment law to be simplified

The Institute of Directors (IoD) has called for employment law in the UK to be simplified to help UK businesses.

The burden currently placed on companies needs to be reduced, the industry body said in a statement, and highlighted employment law as "the main problem area."

The IoD's Alistair Tebbit highlighted the "thousands of different rules" businesses must abide by, which make compliance with employment law tough.

Tebbit said, "The current government, although it has said it is going to stop the increase in red tape, unfortunately appears to be doing the opposite.

"The area of regulation which has the most potential to hinder them, if you like, is employment. We'd like to see deregulation in that area.

"Employment law red tape is not just a narrow issue that pertains to particular sector; it affects all businesses, because all businesses, pretty much, employ people," added Tebbit.

Tebbit's words come following findings from the Federation of Small Businesses which revealed that the overall cost to businesses of EU regulation is £107.6 billion a year.

"Excessive and unnecessary rules and regulations serve as a barrier to growth and employment," added the FSB.