Businesses owners in the UK fear that the increase in holiday allowance that comes into force today will affect their profitability.

From today, full-time UK workers will be entitled to 24 days off a year, which will rise to 28 days in April 2009.

However, research from entrepreneur think tank the Tenon Forum has found that two thirds of small business owners believe the new legislation will have an adverse effect on their bottom line.

In addition, almost 50% think it will reduce workplace productivity whereas 70% think it will cause more work for them.

Furthermore, while around 60% think that more holiday entitlement will improve staff health, only a third believe that workplace culture will benefit.

However, despite these concerns, three quarters of owner managers believe in maintaining a good work life balance for their staff.

Michaela Johns, director of business services at Tenon, said: “Without doubt, the nation’s entrepreneurs will face some major commercial challenges with the government’s extension to annual compulsory leave entitlement taking place.

“UK [small firms] face considerable demands on their time and resources, making it all the more impressive to see so many embracing the importance of achieving a healthy balance between home and work life for their employees.”

© Crimson Business Ltd. 2007