Bradford firms have been warned to take extra care when dealing with employee records.
The warning comes from Robert McGough, of West Yorkshire solicitors Last Cawthra Feather.
It comes after the new Data Protection Act extended its regulations to include manual records.
He said: "Changes come after a series of allegations about companies' data collection activities over the Internet. The Act was implemented to comply with the European Union data protection directive.
"The Act, which previously only covered computer records, aims to protect any information relating to individuals which is stored in a relevant system which can include a manual filing system.
"To ensure compliance with the new Act, businesses should check that all manual and computer files containing personal information are up-to-date, accurate and not excessive and dispose of anything which is not. Businesses must also ensure that there is adequate security to prevent theft, loss of disclosure of personal data and that employees who process the data are aware of the regulations,
"If businesses do not comply with the eight principles of the Act, companies could find themselves being substantially fined. Directors of the company are also at risk of facing personal liability if they are found to be in material breach of the Act."
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