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Two-thirds of firms are opposed to paid paternity leave, according to a survey by the British Chambers of Commerce.
It claims proposals to introduce a right to reduced working hours for mothers following maternity leave and extending maternity leave and pay periods would impact negatively on business.
About 400 businesses surveyed were in opposition to the measures, and they believe that 85 per cent of UK companies would suffer as a result of the proposals.
The report, which included firms with over 50 employees, warns that the proposals could mean that new fathers working for companies that provide discretionary paid leave could be worse off. It claims that in some cases these firms offer greater provision than the Government.
Chris Humphries, director general of the British Chambers of Commerce, said, "The Government should seek to work with companies to build on good practice, particularly in the area of childcare provision. Businesses don't need regulation to change and improve their practices ñ they simply need support."
Julie Malpass, people support officer at West Bromwich Building Society, claimed the proposals, embodied in the Work and Parents Green Paper, could create fierce competition among employers to provide the best maternity packages.
She said, "More and more mothers with young families are wanting to return to work and will go to the employers offering the best package.
