Good communication is key to fostering better relations in the workplace rather than imposing further legislation, business leaders have said.
Good communication and "flexibility" had improved relations in the workplace between staff and employers and had helped to prevent job losses during the economic downturn, the CBI said.
It called on the government to "build" on this success by changing its approach to employment law.
It urged them to consider more codes of practice and guidance instead of imposing further legislation or EU directives.
John Cridland, Director General, said good communication had helped businesses and staff to work together to make difficult changes to working patterns to get them through the downturn.
He said the lessons were particularly important now the public sector was facing similar pressures as a result of the government austerity cuts.
A spokesperson for the Department for Business, Innovation and Skills said: "Where we can make legislation easier to understand, improve efficiency and reduce unnecessary bureaucracy we will."
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