The government could face an increased number of grievance cases from disgruntled companies in the future unless it acts quickly to simplify employment law in the country.
That is the view of Alistair Tebbit, spokesman for the Institute of Directors, who has said that the Conservative-Liberal Democrat alliance must take action soon on this issue to avoid alienating businesses further with the amount of red tape in the sector at the moment.
He said that the regulatory constraints of the UK's employment law act as a restriction to organisations of all sizes across the nation, something that is particularly problematic in the aftermath of the global economic downturn.
Mr Tebbit said that the previous administration had "encouraged" the gradual growth in this area, but added the current coalition "appears to be doing the opposite" from its pledge to reduce red tape.
Meanwhile, David Cameron last week appointed Lord Young as the government's new enterprise advisor.
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Posted by Richard Saunders