BUSINESS owners and managers have been urged to bring their employment policies into line with the Human Rights Act, which came into force last week.

Businesses as well as public bodies will be affected by the legislation, according to the Association of Chartered Certified Accountants (ACCA).

Head of business law John Davies said the new law could have a significant impact on small and medium-sized businesses: "It gives all individuals a series of rights, including the right to privacy of correspondence, freedom of association and freedom of expression.

Employers need to ensure that policies on, for example, monitoring of internet and e-mail usage do not conflict with the Human Rights Act.

Dress code is another case in point.

Individuals are allowed freedom of expression: the European courts have held that this extends to the way a person dresses."

A recent survey showed 75 per cent of all businesses were unaware of the Act and its implications.

ACCA says ignorance of the law could prove expensive because in some cases, there is no limit on damages payable for unfair dismissal.