The application from Manchester-based tracking services company Crystal Ball has been designed to help recession-hit businesses improve their customer service, productivity, efficiency and profitability. It also helps to protect vulnerable lone workers by continually monitoring their whereabouts.

The system, part of Crystal Ball's range of mobile and vehicle black box tracking solutions, requires employees to clock on and off using the touch screen on their mobile phone.

It feeds back live information, recording speed, journey time, distance and precise location through employees' mobile phones.

It also monitors incoming and outgoing mobile phone calls and the use of hands-free kits as well as allowing employers to see all text messages through a web-based system.

Through a series of prompts and acknowledgements similar to those on an in-car satnav, the new system asks employees to confirm that they have complied with both the law and company policy and, for example, that they have:

• Not received any endorsements since last driving their company car

• Ensured all the vehicle's tyres are correctly inflated and have the required tread

• Complied with road safety regulations such as ensuring the vehicle has working headlights and windscreen wash

In addition, if two employees are in the vehicle, the Crystal Ball system allows them to notify their employer who is driving.

Employers can also monitor the information in real time via their computer screen and it can be accessed anytime and anywhere in the world. At the end of the working day, the employee can activate a privacy button to stop recording worker movements.

The system has a comprehensive reports suite and the information is held for three months on the system so it can be downloaded and saved.

Raj Singh, managing director of Crystal Ball, said: 'The amount of legislation that exists out there is frankly scary and businesses are liable for so many things today and it's only going to get worse. Our technology can help them in the management and protection of their workforce as well as compliance with that legislation.'

The technology works on popular GPS-enabled smart phones which include for example BlackBerrys, Nokias and HTCs.