Beecroft report: IoD's Simon Walker on no-fault sacking
21 May 2012 Last updated at 14:26 BST
Business bosses have been "calling for a simplification" of rules to hire and fire staff, the director general of the Institute of Directors said of the leaked Beecroft Report.
Simon Walker said smaller firms had been frightened of taking on new staff - and the "complicated bureaucratic regulations" were a burden for firms with fewer than 10 employees.
Venture capitalist Adrian Beecroft was commissioned by Downing Street to come up with ideas to cut business red tape, which he delivered in October. His report was released on Monday.