The government should reduce employment legislation to boost small firms, according to one industry body.
In news which might be of interest to business insurance customers, the Forum of Private Business has called for things to be simplified so companies find it easier to appoint people when the current downturn ends.
Phil Orford, chief executive of the body, said: "Employment laws are supposed to protect workers, but are in fact a major factor preventing entrepreneurs from taking on new staff."
The economic crisis has revealed just how much of an adverse impact regulation has had on small firms, he added.
Employment law is also proving to be a barrier to firms who are looking at alternatives to job cuts, Mr Orford warned.
Recently, the FPB called on banks to pass on rate cuts to businesses.
It claimed that this is vital to ensure that firms struggling with short-term cashflow issues do not go bust.
