Employment Law drags the economy

This headline is probably not what you would expect from a company whose job it is to simplify employment law and regulations for clients. After all, more regulation (particularly complex regulations) is good for our business.

However, even we are starting to see a significant drag on the economy, productivity, and growth caused by excessive regulations and their growing complexity. For example, paternity leave and paternity pay are becoming increasingly difficult for many small employers to navigate.

We do not believe these regulations will encourage more people to return to work or stay in work, simply because many people are unable to afford to have children. The recent drop in the birth rate is evidence of this.

Tinkering with employment rights will not solve this.

The government needs to be far more ambitious; what is required is a huge national push for affordable, good-quality housing. Lower property prices and greater availability nationally will encourage greater workforce mobility and ultimately raise the birth rate.

There are some parts of the proposed changes that are welcome, such as removing zero-hour contracts. Workers on zero-hour contracts have greater difficulty renting or buying a property. They should be employees, not just workers.

A dramatic increase in house building will need a dramatic increase in apprenticeships. This would help employers, too.