06 January 2011
New businesses 'should be exempt from certain employment laws for two years'
Start-up businesses should be allowed to be exempt from certain employment law obligations for a short period, an expert has said.
According to Rebecca Burn-Callander, the government could help to stimulate the wider economy in the aftermath of the global financial downturn if it implemented such a measure for the first two years after a company has been established.
The specialist stated that this holiday period would be beneficial as "considerations like maternity leave, the new paternity laws, tribunals and new flexible working rights make hiring staff a legislative and financial burden", meaning that many firms are deterred from creating new jobs.
Ms Burn-Callander went on to note that this measure would encourage businesses to employ more people as the process would no longer require "expensive HR functions" to do so.
Elsewhere, Phil Orford, chief executive of the Forum for Private Business, noted recently that the government must fulfil its pledges to cut red tape in the workplace if it wants smaller businesses to replace the jobs set to be lost in the public sector.
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Posted by Daniel Stevens