Many entrepreneurs are unaware of three significant pieces of legislation due to be implemented this year that could have a dramatic impact on their businesses, believes David Robertson, chief executive of Bibby Financial Services.

On 6 April, the Works and Families Act 2006 comes into effect, allowing women to take 12 months’ maternity leave, nine of which is paid, regardless of the length of time they have been with their company. In addition, employees who care for sick or elderly relatives will be able to request flexible working hours.

The much-discussed smoking ban will also come into force in England on 1 July and could result in fines of up to £2,500 for companies who fail to comply with the ban. Employees are able to smoke outside, except in designated non-smoking areas, and anyone caught smoking in banned areas will be fined £50 and spot fines of £200 will be given to businesses failing to display non-smoking signs.

The financial impact of this piece of legislation on small businesses should not be underestimated, warns Robertson: ‘Many businesses, especially those in the entertainment sector, will need to be prepared for potential losses immediately following the introduction of the ban. This, coupled with the need for investment to equip designated smoking areas for staff and customers, means it’s essential that businesses start thinking now about the possible implications of the ban.’

The final part of the Data Protection Act 1998will come into force on 24 October 2007. As a result, all manual filing systems that were set up before 24 October 1998 should be brought in line with the Act, including making sure data stored is accurate, processed in line with the rights of individuals and kept secure, with appropriate measures taken to protect the information. Under the Act, businesses can be fined up to £5,000 for using or disclosing information about people without their consent.