FIRMS are being warned to make sure they don't fall foul of employment laws.

The warning comes as an increase in compensation from £12,000 to £50,000 is about to come into force for workers who win their cases at employment tribunals.

And recent changes in legislation including changing the qualifying period from two years to one has added to the risks posed to employers.

"Attending an employment tribunal can be traumatic, losing one can be catastrophic," warned John Malley, joint managing director of Rawtenstall-based business consultancy First Business Support.

"It is imperative that firms wise up to the threat. Crucially many employers fail to realise the importance of having proper employment procedures in place."

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