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Business leaders say employment law moratorium is ineffective

Posted: 2nd February 2012   In: Business Employment

Business leaders have criticised the Government’s much publicised moratorium on employment law saying that it has done virtually nothing to reduce the regulatory burden.

The moratorium was introduced last April. The aim was to exempt start-up businesses and firms with fewer than 10 employees from new regulations for three years. 

The Institute of Directors say that while the intention was good, in reality very little had changed. 

Alexander Ehmann, head of regulatory affairs at the Institute of Directors, told the Daily Telegraph: "It's the Emperor's New Clothes. The moratorium exists but it hasn't been applied to anything. Unless it is applied to something it is meaningless."

The Federation of Small Businesses was equally scathing. Its chairman, John Walker, said: "The Government has talked a good game on deregulation. But small firms are still waiting to see action on the ground that matches the rhetoric. 

"Firms have still had to get to grips with big changes in employment law and the moratorium for micro-firms is still to take effect." 

Mr Walker said that to be effective, the Government needed to stem the flow of EU regulations, not just those emanating from within the UK.

Please contact Robert Bedford if you would like more information about the issues raised in this article or any aspect of employment law.