The Government suggests that the UK still has one of the most lightly-regulated labour markets in the world, and this helps to explain recent positive employment trends despite the difficult economic conditions. There has, however, been a steady flow of new employment regulation over the last two decades which has added complexity and, to a degree, undermined the overall efficiency of the labour market.

These changes have given rise to perceptions that employment law is costly, time-consuming and over-bureaucratic. These perceptions may often be misconceived but we have to address them and tackle real barriers, where they exist, to flexibility, effectiveness and fairness in the labour market.

The Government launched the Employment Law Review to take a systematic approach to testing our existing laws. Through the Review and other consultative processes we have listened. Two years into the Review, we have delivered significant improvements.

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