BUSINESSES in the south could be losing up to £200,000 a year through "cyberslackers".

The term is used to describe office staff who waste time exploring the Internet for personal use.

According to experts, the coming months will see the problem at its worst as employees keep up to date with the latest sporting news, such as Euro 2004 and the impending Olympics, and book last-minute holidays online.

Southampton law firm Warner Goodman & Streat says bosses should consider reviewing their Internet usage policies now to minimise the vast sums they face losing through Internet-related time-wasting and security issues.

Employment law partner Sarah Whitemore warns the problem is posing a serious threat to companies of all sizes.

She said: "Internet monitoring at work is still a grey area as legislation in this field of employment law is still developing.

"However, bosses can avoid confusion by adopting clear rules on what workers can and cannot do on the Internet at work."

Sarah advises firms to establish a clear policy of workplace "netiquette" and to ensure that staff are all fully aware of what this allows and prohibits.

She said: "Employees are more likely to comply if the rules are seen as reasonable and not arbitrary."

Sarah's top five tips for workplace 'netiquette' are:

1. Have a clear policy on internet monitoring

2. Provide staff training to ensure staff understand company policy

3. Provide advance warning of the possibility of monitoring to take away the 'expectation of privacy'

4. Supply company policy in writing

5. Treat offenders fairly - assess the nature of the offence and an appropriate penalty, and establish an opportunity to appeal.