The business community has rejected any proposal for a full national day of mourning to mark the Pope's death, but has welcomed the Taoiseach's announcement that the event will be marked by a period of mourning.
The Small Firms Association said it was strongly opposed to a national day of mourning, claiming such an event would cost the economy €600 million.
Director of the Association Pat Delaney said it would also set a dangerous precedent.
However, Mr Delaney said employers will make every effort to accommodate workers who wish to take a day's annual leave to reflect on the Pope's death.
The employers' body IBEC estimated the day would cost employers €360 million in wages. The body said individual employers should decide what measures to put in place for the funeral.
"Once it is voluntary and subject to the maintenance of production and services, IBEC believes individual companies should decide what measures should be put in place to facilitate staff requests to attend religious ceremonies this Friday. As religious ceremonies can be attended before or after work there should be no disruption to business," said Turlough O'Sullivan, director general of IBEC.
The Chambers of Commerce of Ireland (CCI) said it supported the Government's decision that Ireland will observe a period of official mourning rather than a full national day of mourning.
CCI chief executive John Dunne said he was confident that employers will facilitate employees who wish to pay their respects on Friday
The Irish Congress of Trade Unions, however, supported calls for a national day of mourning to mark the Pope's funeral this Friday.
Congress said it was clear that this option was favoured by the vast majority of Irish people.
"Economic considerations should not influence this decision," Congress said in a statement.
"The fact that schools are to be allowed to close could cause real difficulties for working parents, who were themselves expected to work as normal. Under the circumstances, a national day of mourning was the sensitive and appropriate response."
Announcing the period of mourning today, the Taoiseach said the death of Pope John Paul II was an "occasion of deep sadness in Ireland and around the world".
He asked that workers in the private sector be facilitated by their employers to participate in Friday's ceremonies.
A book of condolence has been opened at the Apostolic Nunciature in Dublin and churches throughout Ireland are preparing for remembrance masses in honour of the late Pope.
Taoiseach Bertie Ahern signed the book today before holding a minute's silence at Government Buildings alongside Minister for Foreign Affairs Dermot Ahern and Minister for Enterprise, Trade and Employment Micheal Martin.