The BCC argues basic workplace protections have been supplemented with burdensome rights to request, extended time-off provisions and unreasonable health and safety restrictions.
The report also found the average waiting-time for a first hearing at an employment tribunal is 20 weeks.
According to the BCC that employers have ‘the same responsibilities for ensuring the health and safety of home workers as they do for staff based at their own premises'. This includes carrying out a risk assessment and an assurance that lighting and glare within a worker's home is safe.
And employees are allowed to make claims against their employer without taking any advice on the merits of their claim.
The BCC has recommended an urgent overhaul of the UK's dysfunctional tribunal system. These include:
Employers should not have to wait more than 16 weeks for a first tribunal hearing.
The law should be changed to allow employee dismissal if an employer ‘reasonably believes' that a member of staff's actions constituted gross misconduct.
Employers should only have responsibility for equipment they have provided to a remote worker; otherwise remote workers should be responsible for health and safety in their own home
Employees making claims must receive advice from either a solicitor or Acas, the workplace dispute advisory service, before submitting a formal claim or complaint.
David Frost, director general of the BCC, said: "There is an emerging consensus that employment law is now weighted too far in favour of the employee. Many rights come from EU legislation, which is informed by and aimed at labour markets very different to our own. The result is that the UK and the EU are becoming increasingly uncompetitive due to the rising cost of labour.
"Encouraging job creation - and therefore wealth creation - must remain the Government's priority as economic recovery continues. A three-year moratorium on the implementation of new employment law is crucial, as is cancelling the 1% hike in employer National Insurance contributions, planned for April 2011."
