A SOUTHAMPTON firm of solicitors has released guidelines to employers over the use of national flags on company cars during Euro 2004.

Warner Goodman & Streat says it has had inquiries from businesses concerned over the legal implications of staff displaying flags on their cars.

"We've had calls from worried bosses asking if the flags could cause race discrimination issues in the workforce, and whether staff are likely to be offended by what may be perceived as displays of nationalism," said Sarah Whitemore, employment law partner for Warner Goodman & Streat.

Sarah said concerned employers should consult company car and disciplinary policies to establish where they stand.

"However, firms should also be aware that coming down too hard on workers could damage staff relations and adversely affect productivity" she warned.

"We don't want to spoil everyone's fun. Flags could be good for morale and the tournament only lasts about three weeks."