The coalition government is aiming to make employment law simpler to understand for members of staff and companies through the founding of a flexible regulatory framework.

Business minister Edward Davey stated this would allow firms to grow successfully, as well as competing in their chosen field.

Over the course of the next three weeks, the Red Tape Challenge is set to look at more than 120 company law regulations, guidance and enforcement processes businesses have to deal with on a daily basis to see if employment law could be amended.

Mr Davey said: "The feedback we receive will allow us to build on the Companies Act 2006 to look at areas such as the audit regime to assist small and medium-sized companies."

The business minister recently told HR magazine that firms and members of staff should look to resolve disputes without having to go to court to do so.