EDINBURGH South MP Ian Murray has said 230,000 people working in small companies in Scotland could be turned into a “second tier” workforce.
The Beecroft report proposed that firms employing fewer than ten people should be allowed to opt out of unfair dismissal, flexible working, parental leave and other regulations.
Labour MP and shadow business minister Mr Murray said: “Making it easier to fire rather than hire workers will do nothing for economic growth and analysis shows that a two-tier workforce will be created affecting 230,000 Scots.
“Businesses will also be affected by making it more difficult to recruit skilled workers who may opt for larger companies with more protection. There is also a risk that it would prevent small businesses from growing beyond ten workers.”