The plans outlined by Deputy PM Nick Clegg earlier in the month would turn the scheme, which many employers promote informally, into a "tick box exercise".
The FPB’s head of policy Alex Jackman said: "Employers will need to jump through hoops in order to reach the same decisions they currently make without such processes, but with an added threat of being taken to a tribunal.
"We don’t think it’s sensible to add another cost tier to business in the current economic climate."
The FPB's lobbying came as the Institute for Fiscal Studies predicted the UK is set to miss the Chancellor's key fiscal target to eliminate the structural deficit by the end of the current parliament.
As a result of the weakening of the UK economy since the 2012 Budget, the IFS has predicted that Osborne may have to abandon his supplementary fiscal target for debt to fall between 2014 and 2016, and that he may also need to impose more tax rises or spending cuts in next week's Autumn Statement.
Meanwhile, The BPIF has supported the FPB in its request for a fuel duty stabiliser by the end of current Parliament. The BPIF’s Andy Brown expected that the Chancellor would again delay the increase to fuel duty planned for January 2013.
He added: "It does not just have an impact on transporting printed products, but also raises raw material costs."
Brown also revealed that the BPIF was a co-signatory of an open letter led by the Engineering Employers’ Federation and the FPB asking for an increase in capital allowances.
The BPIF requested a two-year 100% capital allowance limit in its pre-March budget submission, but is now taking a "broader brush" with a wider number of organisations in the statement which is to be published in this week’s Sunday newspapers, according to Brown.
In its March submission, the BPIF asked for a freeze in business rates, a claim which is backed up by the FPB’s request for a 2% cap to be established in George Osborne's Autumn Statement.
Brown said: "There is a growing consensus that we need to be kickstarting investment and something needs to be done to help small business invest.
"Lending is still relatively tight despite new schemes being introducing recently, such as Funding For Lending."
The FPB has also asked for further incentives for private lenders through alternative sources of finance to encourage less reliance on mainstream lending, which it claims would reduce SMEs’ "addiction to shrinking levels of traditional lending schemes".
It asks the Chancellor to build on schemes such as the recently proposed Small Business Bank to five businesses credit required for growth and survival.
Jackman concluded: "The Autumn Statement is a chance for the Chancellor to make amends for the disappointment that was the March Budget, and really show he understands the challenges the economy faces."
