If they really wanted to encourage startups, they should allow 'employment at will' (like one can do in the US). Theoretically, someone would be paid a little

If they really wanted to encourage startups, they should allow 'employment at will' (like one can do in the US). Theoretically, someone would be paid a little more for the risk that they could be fired at any time for no compensation. OTOH, small businesses would be able to hire 'frictionlessly', since the risk of each employee is dramatically reduced. In fact, that's a major factor in stopping my business opening an office in the UK.