A SMALL firms’ champion has welcomed Government plans to reform employment law, claiming the current system hampers growth.

The coalition Government says current legislation is weighted against employers.

And the Forum of Private Business (FPB) says that much of the existing employment legislation is a costly barrier to recruitment, as well as to small business growth. FPB research manager Tom Parry insisted: “When we are talking about small business growth and job creation driving a private sector-led recovery, employers must be given greater freedoms to make staffing decisions based on aptitude, attitude and performance, without the fear of huge bureaucratic costs and being taken to a tribunal.

“At present, much of the employment law that is supposed to protect workers is a significant barrier to job creation for many small firms.

“For too long, the balance of legislation has unfairly favoured individual employees at the expense of smaller employers – and often the rest of the workforce.”

He added: “This imbalance must be redressed.”

Meanwhile, FPB research has revealed that 38% of calls made to its employment helpline in the third quarter of 2010 concerned redundancy or discipline matters, grievance, dismissal and employment conduct, making it the biggest staffing headache for small businesses.

However, a first-quarter level of 41% of calls on the same subjects indicates that employment issues are becoming less pressing as fewer entrepreneurs are seeking help in an improving economy.

A further sign of better conditions among small firms was revealed when 358 small business members on the FPB’s Economy Watch panel said they had made of 30 redundancies in October.

Although this was double the number of job cuts made in July when the previous panel survey took place, during the same period there were 125 vacancies, which was up from the 71 opportunities created in July.