Simon Walker, director general of the Institute of Directors (IOD), said that the coalition government needs to take urgent action to remove the obstacles preventing companies from increasing headcount, so the labour market can be stimulated.
It comes after the publication of Adrian Beecroft's independent report on employment law, which has called for the scrapping of restrictive employment legislation, in order to enable growth.
Mr Walker described Beecroft's recommendations as "encouraging", and said the government should back him strongly.
"The current system is so restrictive that it deters companies from hiring new staff, and in extreme cases firms are going under because redundancy procedures take too long. Less red tape means more jobs," the IOD representative added.
Phil McCabe, senior policy adviser at the Forum of Private Business, recently said the government needs to make further cuts to red tape hampering the nations' businesses if it is to free organisations from the shackles of legislation and enable them to create jobs and stimulate employment growth.
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Posted by John Oak and Wayne Bly
Source: The Sales Director News