The Institute of Directors (IoD) has claimed that the steady increase in employment legislation over the last decade has restricted business innovation and questioned the government's commitment to cutting red tape.
IoD spokesman Alistair Tebbit singled out staffing laws as one of the main hurdles facing UK firms across all sectors and claimed the Conservative-Liberal Democrat alliance is yet to deliver on its promises to simplify regulations.
"The current government, although it has said it is going to stop the increase in red tape, unfortunately appears to be doing the opposite," he said. "We've yet to see the government take the whole regulation [issue] seriously."
Mr Tebbit criticised the coalition's plans to create new flexible working initiatives and extend parental leave, adding that the current administration appears to be implementing as many new rules as its predecessor.
Last month, figures released by the Federation of Small Businesses showed that EU regulations cost British companies in excess of £100 million every year.
Posted by Cameron Thomson