Employment law review aimed at helping employers

David Cameron has announced plans for a comprehensive review of Britain's employment laws, with a view to making it easier for firms to take necessary actions to help economic growth.

Mr Cameron said the review would be aimed at "creating a climate in which [the private sector] can grow and develop". A key change would likely to be to the employment laws that govern dismissal procedures, making it easier for companies to dismiss people who are not seen to be pulling their weight.

Changes that are thought to be among those being considered are extending the period during which new employees are barred from resorting to an employment tribunal from one year to two. There is also the possibility that those who lodge an unfair dismissal claim may have to put down a deposit first, to prevent cases of nuisance litigation.

The review stemmed from a summit held in Downing Street this week, in which the country's top employers met with the Prime Minister to discuss how to grow the private sector and get more people into work.

News of the review has largely been welcomed by private businesses, although some have said that there is still a long way to go.

One employment law specialist said, "Employment law is a start, but only a start. Small businesses are over-regulated in many ways, including health and safety, planning, consumer protection and taxation compliance as well as employment."