A pioneering tracking device that combines mobile phones with ID tagging is being hailed as the latest must-have technology by a Whittle-le-Woods businessman.

The controversial device, which uses radio frequencies to allow bosses to spy on their workers, is set to revolutionise working practices, according to Mike Lister, who has set up his own business marketing the product, from his home in Elder Close.

But the tagging system, dubbed as another ‘Big Brother’ scam by human rights groups, has sparked concerns over privacy.

A spokesperson from the human rights group Liberty, said: “Unfortunately this technology has developed faster than the regulations that protect our privacy, but safeguards must be in place to ensure that no one is being tracked without their knowledge or against their will.”

But Mr Lister believes that more than 500 million handsets will include this type of technology by 2010.

He said: “It’s like a clocking-on system for the 21st century, only it enables businesses to do far more than just record when staff arrive for work.

"A security company might want real-time evidence that their guards are checking every section of a perimeter fence, or a field service worker could use the system to record their business mileage and log jobs.”

The technology has been developed by Finnish company Reslink Solutions, which specializes in proof of attendance devices for business.

Holding a mobile phone against one of the small tags or chips proves an employee has arrived at a fixed point at a particular time. It can relay real-time information back to head office.

The 55-year-old, former solutions groups manager at Computer Applications Ltd in Chorley, has been selling the devices to businesses nationwide for nine months.

“The device provides a tremendous opportunity for businesses to improve services they provide to their clients,” added Mr Lister, who is one of only three suppliers in the UK.

“It allows them to check where their staff are and that they are doing what they are suppose to be doing when they are at work”.

But the Liberty group was also concerned about data protection.

The spokesman added: “Companies who chose to use this technology should be in touch with the Information Commissioner’s office to ensure that they are complying with data protection principles.”