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Abstract: This paper extends the Hille–Phillips functional calculus and rational approximations results due to R. Hersh, T. Kato, P. Brenner, and V. Thomée to generators of bi-continuous semigroups. The method yields error estimates for rational time-discretization schemes for such semigroups, in particular for dual semigroups, Feller semigroups such as the Ornstein–Uhlenbeck semigroup, the heat semigroup, semigroups induced by nonlinear flows, implemented semigroups, and evolution semigroups. Furthermore, the results provide error estimates for a new class of inversion formulas for the Laplace transform. [Copyright &y& Elsevier]