A group of Guernsey publicans is considering asking new bar staff to sign an agreement to show they are happy to work in a smoky atmosphere.
Some Licensed Victuallers' Association (LVA) members are worried about being sued if employees develop smoking-related health problems.
LVA vice president Peter Leigh said that it was the best way to prevent such legal action.
Health Minister Peter Roffey described the move as "despicable".
Deputy Peter Roffey said it was "outrageous to expect people to sign away their health".