And the biggest trade union in the Island will lobby the States to ensure that workers’ rights are protected when thousands of businesses change from being companies to limited trading partnerships in 2009.

Nick Corbel of the Transport and General Workers Union said he will be seeking assurances that companies that become partnerships will not renounce union recognition agreements and seek to reduce employee benefits and terms and conditions.

‘We are referring these proposals today to a specialist employment lawyer in the UK for comment.

We will be looking at the proposals and making submissions to the consultation exercise,’ said Mr Corbel.

The new zero-ten system will see the introduction of a £500 charge per employee that will raise about £5 million from non-resident companies who will not pay tax in Jersey under the new system.However, local businesses will still pay the charge but their shareholders will get a full rebate on it from their taxes.

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