A LAW firm is warning companies about legislation that could see them punished if staff are caught making work-related mobile phone calls while driving.

Latimer Hinks, of Priestgate, Darlington, says the Department of Transport legislation will bring in fixed penalties of between £30 and £2,500 for firms whose employees are caught using hand-held phones.

But the firm says there is a legal loophole that might make liability confusing and get companies off the hook.

Partner Nick Poole said the legislation made no provision for employees using their own mobile phones, which could have implications in areas such as insurance.

He said: "This has the potential to be massively confusing. It is unclear from this guidance whether an employer will be liable if the employee uses his or her own mobile phone for company reasons while driving and has not been expressly told that this is forbidden.

"Regardless of who provided the phone, this has potentially far-reaching consequences over insurance for instance. An employee involved in an accident while using his or her own phone may not be covered."