According to the FSB, over 6% of small businesses plan to shed staff in the first three months of 2012.

Ahead of the government’s report on its ‘Modern Workplaces’ consultation launched in May 2011, the federation said the government needs to do more to help small firms.

The consultation proposed measures such as flexible parental leave, an extension of the right to request flexible working and the requirement for firms to conduct pay audits to promote equal pay.

However, with small and micro businesses expected to cut jobs in the coming months, the FSB has outlined a number of measures intended to incentivise job creation at smaller businesses.

It is calling for micro firms to be made exempt from the extension of the right to request flexible working for all.

It also suggests that micro business should be exempt from the proposals on pay audits. The FSB said these could potentially be costly, time-consuming and complex.

Federation of Small Businesses national chairman John Walker said: "The government has a good chance to make a real difference to the livelihoods of small firms when it reports on the Modern Workplaces consultation. Tinkering and increasing existing employment laws will only serve to worsen this situation.

"But by putting simple measures in place, such as excluding micro firms from the right to request flexible working for all, will help free businesses from the shackle of red tape so they can grow, innovate and take on new staff."

However, while BPIF’s Brown says anything to cut complex paperwork and legislation within the print workplace is welcome, he believes there are more pressing concerns.

"While I believe many of our members would like less paperwork and audits to complete, access to finance and the ability to grow through investment would be more of a priority," he said.