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Students about to start their graduate jobs may be pleased to hear that almost half of the UK's small firms are scared to discipline their staff for fear of being sued, according to a new report.

Research from the employment law firm Peninsula has also revealed that 89 per cent of employers would be happy to discipline staff if they were confident about the issue legally.

David Price, head of employee relations at Peninsula, said: "Some businesses are so scared about being taken to employment tribunals that they are choosing not to discipline staff! Many businesses these days are so convinced that employment law is weighted on the side of employees, that they are afraid to tackle serious issues in the workplace."

He added that employers in the UK should not be afraid to use disciplinary and grievance procedures which when used properly can "provide a clear and transparent framework to deal with difficulties".

According to the research, 79 per cent of employers fear that the increase in employee rights has made it only a matter of time before they are taking to an employment tribunal.

Peninsula was formed in 1983 and offers expertise on employment law to companies in the UK. It is based in Manchester and boasts 24 hour services.

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