Her comments come after business secretary Vince Cable this weekend repeated his opposition to proposed "no-fault dismissal" legislation, which would make it easier for company managers to sack underperforming staff.

"My personal view is that the issue has become too high profile," Woodward said. "At the moment it’s very much a culture of ‘we’re all in this together’ and most companies have sensible employment procedures. The implication that - [should the government change existing employment laws] - companies would go around firing people at will is nonsensical."

But the Chartered Institute of Personnel and Development (CIPD) dubbed no-fault dismissal as "objectionable" and "unnecessary". Speaking in June, CIPD employee relations adviser Mike Emmott said: "It is objectionable because it would be a licence for bad practice in managing people and damage the reputation of the whole micro-business sector.

"It is unnecessary because employers facing a possible tribunal claim can already offer the employee a compromise agreement, and tailor the level of compensation to the particular circumstances."

But Woodward said that there was a current lack of certainty on the issue of employment tribunals.

She added: "Employers want to be able to share their business challenges with their workforce and jointly work towards effective, speedy solutions that are in the best interest of creating sustainable businesses. It implies a degree of trust on both sides. Suggesting that managers will act in maverick ways towards their workforce might work in the short term for a small minority but is unlikely to build the cultures necessary for long term success."

The government’s no-fault dismissal system was originally proposed in the David Cameron-commissioned Beecroft Report.

Meanwhile, the government is today (Monday, 10 September) rolling out proposals and plans aimed at cutting red tape and costs, including new legislation that will exempt some businesses from health and safety inspections.

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