Businesses in the UK are sceptical over the effect new employment legislation will have on their companies, according to data released by the Chartered Institute of Personnel and Development (CIPD).

The survey also revealed that business owners view the Working Time Regulations and the Agency Worker Regulations - due to come into force October 2011 - as of most hindrance to business. Only 28% and 13% respectively believe they will be helpful to their firm.

Only one in four businesses in the UK offer fathers two weeks pay at or near the full rate of pay and 24% offer no paid paternity leave beyond the two week statutory level.

"While employers are supportive of the national minimum wage and a plethora of equality rights, they are yet to be convinced about the merits of the Agency Workers Directive and the Working Time Directive," said Mike Emmott of the CIPD.

"The CIPD believes that the Working Time Regulations in particular have negligible value in limiting unhealthy workplace behaviour. We are therefore calling for its repeal in the context of the review currently being undertaken by the European Commission."