Employers groups are urging businesses of all sizes to step up their contingency plans against a swine flu pandemic, following a government forecast that there could be as many as 100,000 new cases daily by the end of August.

Health secretary Andy Burnham said last week that the incidence of new cases means that the government can no longer contain swine flu. Firms have been told that one in five of their staff could be affected by the autumn, although there is no evidence to suggest that the virus has become any more virulent than before.

"Many firms already have contingency plans in place to deal with emergencies, including a flu pandemic," said Johhn Cridland, deputy director general of the Confederation of British Industry.

"All firms need to ensure they are prepared if swine flu becomes more serious in the UK as the year goes on. This may involve introducing measures such as remote working in order to deal with possible disruption to normal operations."

According to the Forum for Private Business, which represents 23,000 small businesses, firms need to make plans to cover essential roles.

"It is imperative that firms plan ahead now, to get ready for the impact this could have," said a spokesman. "If you are one of the smallest firms you must plan to make sure people get paid and invoices get paid. It is essential to form project teams as soon as possible and make sure you comply with the law."

Forecasting group Oxford Economics warned last month that global economic recovery could be set back by swine flu and ''companies that are already fragile after the recession may succumb to this new shock.''

It calculated that if a six month pandemic would cut world Gross Domestic Product by £1.5 trillion, or 3.5%. ''Increased uncertainty would also have a negative impact on financial markets,'' it added.

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