Jersey Chamber of Commerce says that the financial burden of the proposed family-friendly employment laws will be too great for business.
Jersey's Minister for Social Security has proposed changes to the Employment Law which aims to give new parents the option of taking one year off work, with 6 weeks full pay.
The body that represents Jersey businesses supports the provision of good and fair employment for its member's employees, however it says it is not without its challenges.
The Chamber says under the planned changes its members will find it even more difficult for employers to fill gaps in their workforce.
The organisation say employers will face an increase in costs due to the longer payment period.
Jersey Chamber of Commerce highlights that in the UK employers are able to seek funding from the government to cover some of the costs, and is calling on the island's government to consider doing the same.
It also highlights that in the UK employers can seek government funding to cover some of the costs, and wants the island's government to consider doing the same.