An official body has warned against excluding any firms from the proposed roll-out of flexible working rights to all workers.
The Chartered Institute of Personnel and Development (CIPD) said that if small firms were excluded from the proposals it would create a two-tier labour market.
The CIPD's response to the government's Modern Workplaces consultation also said exclusion of companies of any size from employment regulation could discourage small firms from growing.
Flexible parental leave, equal pay and the Working Time Regulations were among the things discussed during the consultation.
Mike Emmott, employee relations adviser at the CIPD, suggested that all employees should be given the right to request flexible working.
He added: "Excluding business of any size from the application of employment regulation would tend towards the creation of a two-tier labour market and could be a perverse disincentive for employers."
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