Deregulation of employment law ‘vital for business’

Posted 24/05/2011

One organisation has hit out at critics of government plans to reform employment law in the UK, stating that such moves are crucial for the economy.

Miles Templeman, director-general of the Institute of Directors, stated it is good news that the coalition has promised to tackle bureaucracy in the system, adding this will be especially helpful for smaller firms that often cannot afford to employ human resources specialists and therefore struggle with legislation.

He said making it easier for firms to manage staff will help their productivity and make them more competitive on the global stage.

“Excessive employment regulation is one of the most damaging features of the current UK business environment and the coalition is right to look at how we can deregulate,” Mr Templeman claimed.

He was speaking in response to a piece that appeared in the Financial Times that quoted Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development, as saying deregulation may exacerbate problems in the labour market.