The not-for-profit organisation claimed that the cost of a single day of employee absence could reach £230m, as companies are hit by freezing conditions and heavy snowfall with the Met Office warning that minimum temperatures have dropped to their lowest in 15 years.

Tom Parry, FPB research manager, said: "Losing key staff because of the weather even for just a day is very damaging, particularly in the current economic climate.

"It is important that employees put in place contingency plans for these occasions and that these plans comply with employment laws."

According to Parry, the calculation was made using information from daily GDP figures, anticipated vehicle breakdown levels from the AA, average salaries and official data reflecting an expected fall in retail sales.

Employee absenteeism represents a "huge cost" for many small businesses, he said.

The FPB's recent Cost of Compliance survey found that small business employers in the UK annually spend £391m on absence control and management. This is more than any other aspect of employment law.