Magistrates, teachers, foster parents, doctors, and therapists have been disciplined, demoted, or sacked for living in accordance with their beliefs, the paper from think tank ResPublica said.
Compromises to religious freedom "seriously endanger" the contributions of faith communities to the common good, the study argued.
It called for the Government to press ahead with a British Bill of Rights, incorporating a duty to make a "reasonable accommodation" for religious beliefs.
A number of cases have attracted scrutiny in recent years, including legal battles involving the right of Christian employees to wear crosses at work.
An opinion issued by an adviser to the European Court of Justice earlier this year said employers may be able to ban Muslim staff from wearing headscarves to work - as long as it is part of a general prohibition on all religious symbols.
James Law, from Res Publica, told Premier: "The courts are developing a more hostile attitude to certain beliefs that Christians hold and seem to be protecting and prioritising what are plainly political positions.
"There's been an increasing concern that something's gone wrong with rights... So we think the Bill of Rights offers an important opening and opportunity for the government to take, particularly with respect to religious freedom.
And commenting on the idea of a potential "reasonable accommodation" clause within the British Bill of Rights for religious beliefs, James added: "The basic idea is to make employers and service providers think about the nature of religious beliefs... to create an environment that would encourage people to work out how these different beliefs can be accommodated, without running to the courtrooms."
Conservative MP and Christian David Burrowes welcomed Res Publica's report.
He said: "Religious liberty is a fundamental right, but recently we have seen it being downgraded compared to other human rights.
"Religious freedom is a universal human right which is foundational to a good society, and should not be shunned or marginalised."
Listen to Premier's Alex Williams speaking to James Law:
