A new year will bring new protection against worker exploitation

Businesses which exploit their staff face unlimited fines under a raft of new legislation set to become law this year.

The Employment Bill 2007-2008, is intended to offer workers more protection and will include severe financial penalties for those businesses found to be exploiting workers, for instance by failing to pay the national minimum wage.

It includes changes to dispute resolution in the workplace, and tribunals, and the Government also hopes it will benefit employers, trade unions, individuals and the public sector, and bring together the legislation designed to protect workers ñ but also lighten the load of red-tape for businesses.

Steven Meyerhoff, employment lawyer at Backhouse Jones Solicitors, Clitheroe, Lancashire, said: ìBusinesses which follow the rules and act within the law have nothing to fear ñ but those that donít could face unlimited fines.

ìEssentially it will do two key things. It will provide protection for vulnerable workers by not only giving investigators greater powers when investigating complaints of exploitation but also toughening up penalties for those businesses breaking the law.

ìSecondly it is likely to repeal the strict obligations currently placed on businesses who are contemplating disciplinary action against employees and implement a non prescriptive set of rules which should promote internal resolution of workplace issues.

ìThis will cut the amount of red tape and paperwork which has been a constant burden to small businesses especially, and is to be welcomed.î

However, Mr Meyerhoff urged the Government to back up the new rules with guidelines to ensure it is easy for businesses to comply.

He added: ìNow that these plans are in place, it is important that the Government backs them up with further plans to encourage and support businesses and workers who want to take advantage of the new rules.î

The Employment Bill is expected to receive Royal Assent by the summer, but legislation may not come into force until next year.