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The Chartered Institute of Personnel and Development (CIPD) has given its response to the recent budget, in which it commets on the Government's proposed moratorium on employment regulation for small firms, expressing concerns that it might create a two-tier labour market.
Mike Emmott, CIPD employee relations adviser, said that: “We are concerned about the moratorium on all new employment regulation for small firms for three years. The onus should be on government to bring forward only light-touch employment regulations that do good, not harm – irrespective of company size. A moratorium for the smallest firms is a dangerous precedent that risks creating a two-tier labour market, and could even at the margins act as a perverse disincentive for growth amongst firms considering employing the extra staff member that would bring them into the ‘regulated tier’ of the labour market.”