The Institute of Directors (IoD) has issued a raft of recommendations to the Government which are designed to cut the amount of red tape businesses have to handle and pave the way for increased growth.

The 24 "freebie" measures include the removal of the right to request flexible working and end the practice of collective bargaining in the education and health sectors. The IoD also recommended that workers should have to put down a £500 deposit before applying to an employment tribunal, in order to prevent frivolous or vexatious claims.

Director General of the IoD Miles Templeman explained: "Many of the measure we have proposed today are long overdue and would improve the UK's infrastructure and the functioning of its labour market. We urge ministers to seize this opportunity."

Perhaps unsurprisingly, the TUC has been quick to condemn the recommendations, rejecting the claim that they would help to stimulate growth. Brendan Barber, the TUC's general secretary, told the BBC's Today programme that: "We need decent, fair pay systems and collective bargaining is the way to deliver that."

Mr Barber also stated that performance related pay was not a magic bullet for boosting productivity, and added that in many circumstances it was actually counter-productive, encouraging competition between employees rather than fostering teamwork in the workplace.

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