A recent report from a leading Professional Staffing Recruitment Agency has said that strict employment legislation, such as IR35 and the Agency Workers Regulations, is restricting recruitment activity in some business sectors. Barclay Meade’s ‘Tracking UK Recruitment’ report revealed that low business confidence has been one of the main factors restricting medium and large businesses from hiring.
Following the news that the UK fell further into recession in the 2nd quarter of 2012, Barclay Meade reported that 58% of firms are calling on the government to relax employment legislation in order to help support business growth. 54% also agreed with some of the controversial proposals in the government commissioned Beecroft report from last year, which looked at exemption and reduction of some of the more restrictive EU regulations.
Barclay Meade managing director Nigel Lynn commented on the report, saying that an effort must be made to consider the potential long term impact of businesses reducing their hiring activity adding that “we are already seeing signs of permanent, significant changes to the way we are employed as a nation.”
Describing the next two quarters of this year as “a period which will be crucial in determining the long-term economic prospects for the UK”, Mr Lynn said, “The Government should be now be focusing on easing red tape for businesses, including relaxing employment legislation, which would help stimulate hiring activity if supported by greater periods of sustained economic prosperity.”
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