Almost three quarters of British bosses have reported a drop in productivity as a direct result of the smoking ban, according to new research.

Furthermore, around 5% of employers who took the survey admitted they break the law by allowing staff to smoke indoors to encourage them to work harder.

The findings released by Employment Law Advisory Services (ELAS) come almost a year to the day since smoking in confined spaces was outlawed in England & Wales.

The UK-wide survey of 1,100 company bosses and personnel managers found that 71% of employers believe there has been a significant drop in productivity levels since 1 July 2007 due to staff taking more frequent or longer smoking breaks.

There were some positive findings however, as 93% of bosses have seen a decrease in the number of employees who start smoking, while 82% of those surveyed noted a reduction in sick leave.

Peter Mooney, head of consultancy at ELAS, said: “We commissioned the survey after receiving mixed feedback from employers in response to the smoking ban.

“Many bosses feel that, while there are obvious health benefits for them and their employees, productivity has taken a real tumble due to more people spending longer away from their posts.

“Indeed, several employers have informed us that they have now decided to flout the law by allowing staff to smoke indoors again in a bid to encourage greater output.

“This is a criminal offence which carries a sever penalty and I would certainly advise any employer not to go down this route.

“One company boss told us that his workers had requested permission to smoke indoors and he thought it would be good for staff morale – and therefore productivity - to allow them to do so.

“However, the vast majority have stayed within the law and continue to see their output harmed by the smoking ban.”

For more information on this or any other employment law advice,  call Employment Law Advisory Services on 0161 785 2000 or visit www.employment-law.uk.com