Speaking to businesses across the United Kingdom, there is an emerging consensus that employment law is now weighted too far in favour of the employee. Basic protection of employment rights has now been replaced with rights to request, extended time off provisions, and complex laws that neither employers nor employee can understand.

Many rights come from EU legislation, which is informed by and aimed at labour markets very different to our own. The result is that the UK, and the EU, are becoming increasingly uncompetitive due to the rising cost of labour. This report presents a number of ways that employment legislation and the Tribunal system can be rebalanced, resulting in reduced costs, less bureaucracy and improving the competitiveness of the UK economy. Encouraging job creation – and thus wealth creation - must remain the Government’s priority as the economic recovery continues.

A three year moratorium on the implementation of new employment regulation is crucial to achieving this, as is cancelling the planned 1% rise in employer National Insurance Contributions scheduled for April 2011. Over the lifetime of the next Parliament, the new Government must commit to less regulation, and crucially, they must also review current employment regulations and the burdens they impose. This report is being launched at our Annual Conference to highlight the importance of employment regulation to British business - and we call on the next Government to act on its clear policy
recommendations in 2010 and beyond.