Britain's main business lobby group announced on Tuesday the sacking of Director General Tony Danker, following allegations of sexual misconduct that have rocked the Confederation of British Industry.

The CBI suspended three other employees and apologised to victims as it expressed "revulsion" over their stories and admitted "serious failings" in its handling of the matter.

The organisation said Danker "is dismissed with immediate effect following the independent investigation into specific complaints of workplace misconduct against him".

The CBI announced that Rain Newton-Smith, former chief economist at the group, had agreed to rejoin as its new director general just one month after starting a strategist role at Barclays bank.

Danker had stepped aside from his role in early March, allowing the probe by a law firm to occur.

He said he was "shocked" to learn of his dismissal, claiming many of the allegations against him were "distorted".

Writing on Twitter, Danker added: "I recognise that I unintentionally made a number of colleagues feel uncomfortable and I am truly sorry about that."

The CBI describes itself as an organisation representing 190,000 businesses, employing almost seven million people.

Tuesday's statement added that "three other CBI employees are now suspended pending further investigation into a number of ongoing allegations".

The CBI described the recent allegations as "devastating", while noting "there have been serious failings in how we have acted as an organisation".

It also apologised "to the victims... including those impacted by the revulsion we have all felt at hearing their stories."

Britain's Guardian newspaper had reported that more than a dozen women claim to be victims of sexual misconduct by senior figures at the CBI, including one woman who alleged she was raped at a staff party.

The newspaper reported that Danker was not subject to those complaints.

The revelations have caused member companies and the UK government to distance themselves from the lobby group. (AFP)