Employers believe age and sex discrimination legislation, along with other employee rights have given staff too much power.
Some 70% of 600 UK SMEs questioned by think tank The Tenon Forum believe the balance of power shifted too far in favour of employees. As well as age and sex discrimination legislation, the findings of The Tenon Forum Report found government initiatives around paternity rights and sexual orientation also added to employees’ power.
Michaela Johns, director of business services at Tenon, said: "Entrepreneurs are broadly in favour of measures which protect employees, but our findings show they feel under pressure from increasing workplace legislation."
She added that the government should be careful not to over-regulate business. "The government must be wary of developing the kind of stringent employment laws which have strangled many businesses on the Continent and instead build a climate which enables enterprise to flourish."