British businesses are increasingly confused by the growing complexity of the country's legislation governing employment, a study suggests.

According to data released by the Federation of Small Businesses (FSB), the number of queries received by the organisation over 2006 regarding employment legislation rose by eight per cent.

As a result of new or forthcoming legislation regarding discrimination on the grounds of age, religion or sex, the number of queries relating specifically to age discrimination has increased by 664 per cent since 2005.

"Employment law is vital to ensure that both employers and employees know where they stand and to protect both parties as they carry out their work," said Alan Tyrrell, employment chairman for the FSB.

"However, the complexity of these laws is placing an intolerable burden on smaller firms who are not big enough to have their own HR department," he added.

Among the other areas of concern for Britain's business community include retirement, pensions and discrimination on the grounds of religion or sexual orientation.

The FSB is a UK-based lobby organisation, representing its members from the small business sector.