The maximum recursion 100 has been exhausted before statement completion

Specify the maxrecursion option at the end of the query:

...
from EmployeeTree
option (maxrecursion 0)

That allows you to specify how often the CTE can recurse before generating an error. Maxrecursion 0 allows infinite recursion.

it is just a sample to avoid max recursion error. we have to use option (maxrecursion 365); or option (maxrecursion 0);

DECLARE @STARTDATE datetime; 
DECLARE @EntDt datetime; 
set @STARTDATE = '01/01/2009';  
set @EntDt = '12/31/2009'; 
declare @dcnt int; 
;with DateList as   
 (   
    select @STARTDATE DateValue   
    union all   
    select DateValue + 1 from    DateList      
    where   DateValue + 1 < convert(VARCHAR(15),@EntDt,101)   
 )   
  select count(*) as DayCnt from (   
  select DateValue,DATENAME(WEEKDAY, DateValue ) as WEEKDAY from DateList
  where DATENAME(WEEKDAY, DateValue ) not IN ( 'Saturday','Sunday' )     
  )a
option (maxrecursion 365);