MEPs voted recently in favour of a five-year plan to reduce accidents in the workplace by 25% through a range of measures, including financial incentives.

The UK government has to report back to the European Parliament on how it will implement the policy, which calls for tax and public sector procurement enticements.

Firms with poor safety records will face tougher sanctions.

Glenis Wilmot, the East Midland MEP who drafted the EU policy said: "This strategy calls for a carrot-and-stick regime, so companies with good health and safety records should have preference in state tenders, and member states should look at giving them tax rebates."

ALL companies, regardless of size, must comply with health and safety law; let the FPB guide you through the hazards of compliance.