Any such move would lead to large job losses among Rolls-Royce's 30,000 UK workforce.

Rolls-Royce's chairman Sir Ralph Robbins said the company could move to the US if the UK government adopted the labour laws.

He sounded the warning at a business conference in Australia where he said continental Europe was 30% more expensive for an employer than the UK.

Rolls-Royce plc is a major player in the in civil and military aerospace industry, technology for oil and gas exploration, and engines for ships.

Rolls-Royce cars are produced by a completely separate company.

Speaking for all

He said: "The last thing we want is some of the European labour laws appearing in the United Kingdom - and I'm not just saying that for Rolls-Royce, I'm saying that for every industrialist in the UK."

Sir Ralph said he believed "sense would prevail" in Britain, where Rolls-Royce employs 30,000 people, mainly at Derby and Bristol.

However he warned: "We have an out if it happens, and the out is that we have manufacturers around the world."

Rolls-Royce employs some 30,000 workers in the UK

He pointed out how high German social costs had forced a restructuring of the joint aero-engine venture with BMW, the German car manufacturer and Rover owner, to transfer most of the manufacturing to the UK.

Faith in the UK

Sir Ralph said he did not believe that the UK government would introduce more restrictive employment laws.

"But we will progressively move work to the United States if we find ourselves disadvantaged by that sort of social costs," he added.

Sir Ralph's warning came as details of the Fairness at Work Bill were outlined in the Queen's Speech.

The Bill includes new rights for maternity and paternity leave and time off for family emergencies, greater protection against unfair dismissal and new rights for part-time workers.

But it also comes a week after Chancellor Gordon Brown signed up to a left-wing manifesto with other EU partners on tax harmonisation and greater economic co-operation.