A group representing small businesses has called for a halt to new employment legislation.

Trade and Industry Secretary Patricia Hewitt wants to make it unlawful for employers to count bank holidays as part of employees' statutory four weeks' holiday.

She also wants the amount of time before a worker who strikes can be sacked extended from eight to 12 weeks, increased rights for temporary staff and protection for pensions when workers move jobs.

The proposed laws are likely to be included in the Labour Party's election manifesto.

But they have alarmed some business groups.

John Walker, policy chairman at the Federation of Small Business, said: "Small firms employ more than 50 per cent of the private sector's employees, a total of 12 million workers.

"Any increase in administrative burden can have an influence on their ability to create jobs."

Wednesday July 28, 2004