HUNDREDS of firms in Hampshire face fines of up to £75,000 from today if they fail to consult staff under new employment laws.

The warning follows a get-your-house-in-order letter sent by employment relations minister Gerry Sutcliffe, pictured, to all businesses in the county with 150 or more staff.

Regulations oblige employers to consult employees about important matters affecting the business.

Until now consultation obligations have been mainly restricted to redundancies and business transfers.

The new Information and Consultation of Employees regulations give workers the right to request information about a raft of issues relating to their employer, including the financial health of the business, redundancies, business transfers and contractual relations.

Mike Wilson, an employment expert at south coast legal firm Clarke Willmott, said: "The new regulations force employers to consult staff representatives on various business matters.

"With a penalty of £75,000 if employers breach this legislation, it is important that employers know what to do if the regulations apply to them."

From 2008, any business with 50 or more staff will be affected.

Ken Allison, head of human resources consulting at commercial lawyers Bond Pearce, which employs more than 200 people in Southampton, said: "This legislation has been drafted to be as flexible as possible, but companies will need a clear strategy in order to make sure that any consultation arrangements add value to the way they do business."

A typical example of the need for consultation emerged from a disability discrimination court case involving a teacher and her local education authority employer.

Gaynor Meikle successfully argued that Nottinghamshire County Council failed to help her with eyesight problems.

She said: "If my employers had consulted me properly it is unlikely I would ever had taken legal action."