Independent advisers believe that employment legislation is holding back the growth and productivity of their businesses.
A survey by employment law firm Peninsula shows that red tape is the biggest gripe of 84 per cent of the 553 respondents while 93 per cent say an employment tribunal payout could financially damage them to the point of not being able to continue in business.
Sixty-seven per cent of IFAs have had experience with disgruntled employees and 36 per cent have taken part in an employment tribunal.
Eighty-nine per cent of respondents believe that employment law is too complicated.
Peninsula's survey found that most IFAs have human resources procedures and principles in place. It found that 98 per cent of those polled have sufficient human resources paperwork, including employee contracts and handbooks.
Senior employment law specialist Mike Huss says: “There are many positives to be drawn from IFAs' recent clean bill of employment law but the lesson that one learns is to follow and maintain what you introduce. Keep updated with the law and deal with workplace disputes as early as possible to avoid any chance of litigation.”