Employment contracts 'could be simplified'

The government could help small business owners by making employment contracts less burdensome, advice site Smarta.com has said.

In his New Year statement, Forum of Private Business chief executive Phil Orford said the government must fulfil its pledges to cut red tape in the workplace if it wants smaller businesses to create new jobs.

He added that a "long-overdue" simplification of the tax system would also encourage more companies to expand, as well as making employment contracts more attractive.

Rebecca Burns-Callander, deputy editor of Smarta.com, said the government should waive the bulk of employment law for start-ups for the first two years.

"This will encourage new businesses to create jobs without the need for expensive HR functions to manage things like pensions, as new employees become eligible from day one of employment," she added.

The Federation of Small Businesses agreed with the comments, saying new legislation such as the Agency Workers Directive and scrapping of the default retirement age will put pressure on firms in 2011.

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Published on: January 6, 2011

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