Eligibility for unfair dismissal claims could be restricted to workers who have been employed for two years.
Lord Young, who last month published his report on health and safety laws, has now been appointed as the government’s advisor on small businesses.
Speaking on the BBC’s Today programme this week, he confirmed rumours that he is considering increasing the length of employment that must be served before an unfair dismissal claim can be brought.
“Back in the ‘80s when we did that, the result was that employment starting shooting up again,” he said.
“I want to find out what small-business people themselves think about this and then we’ll think about it.”