The Institute of Directors has joined the employers chorus of criticism currently focused on the Government's policy of extending employee rights.

"Family friendly policies sound seductive," says the IoD's Ruth Lea, "but are yet further regulatory burdens on business."

She adds: "Businesses, especially small businesses, are being strangled in red tape."

The IoD reports that the new Parental Leave Directive will impose, on Government figures, £35M in compliance costs on companies. In addition, the cut in qualifying period from two years to one for extended maternity leave will have the effect of increasing the take-up of this leave, the Institute argues, further increasing costs.

"We recognise and willingly accept that employees must have rights in the workplace," Lea says. "But the balance between employer rights and employee rights is increasingly being pushed in favour of the employee. This is simply unfair, and can only damage the business sector."

A case of can't-win?

Elliott Chase