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IoD snubbed over changes to employment rules

Employment rules are clearly a ‘no-go’ zone for consultation after the government turned down more than 90 recommendations for changes in a study by the Institute of Directors.

The IoD polled members about regulatory red-tape that was making life difficult for businesses and came up with 269 ideas to improve day-to-day working. These included:

    * The Government ensured the Financial Reporting Council is not gold-plating EU requirements over accounting standards

    * Suggestions to simplify corporate tax returns, Intrastat reporting and money laundering regulations

    * A new look at planning requirements, marine and coastguard regulations and hazardous waste management

The Government has agree to move forward with 11 of the original 269 red tape improvement suggestions

Another 108 are agreed as resolvable through current consultations or updates of existing policy.

But all of the proposals about employment regulations were turned down, like parenting rights, dismissal, employment tribunals and redundancy.

Commenting on the report, IoD Head of Regulation Policy, Alexander Ehmann said: "The Government has compiled a comprehensive response to IoD member concerns on regulation. The process for consideration, quality of responses and effort which government has put into this exercise shows how seriously business concerns have been taken. We are also glad to see that a number of IoD member contributions have resulted in potential changes to the regulatory environment or have caused a significant rethink of existing burdens." 

"Despite this, we can't help but feel disappointed at the 'No Go' zone on employment law. The vast majority of businesses feel the burden of red tape most acutely when it comes to employing people and we had hoped that for more action on this important area.”

The IoD was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with more than 52,000 members in the UK and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.


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