Vic Patterson, Assistant Director of the DTI's Employment Relations Directorate, asked agencies for their input over proposed changes to the new Employment Agencies Act (EAA) during its third consultation period.

The two focal points of the meeting were time sheets and whether personal service companies should be excluded from the regulations.

The agencies pressed Mr Patterson over the risks of exposing them to a ban on making payment to workers conditional on the provision of authenticated timesheets.

Mr Patterson said the DTI was currently reviewing this issue to see if it needed clarification.

Ann Swain, Chief Executive of ATSCo, issued a statement on the exemption of freelance businesses from the regulations. She said: "ATSCo, the Professional Contractors Group and the Recruitment and Employment Confederation (REC) IT Division are carrying out a joint survey of contractor views on this matter."

She added: "We still hold very serious concerns over the proposed regulations and will be making further representations."

Shout99.com broke the news of the DTI's proposed changes to the EAA in July.

Shout99.com invited readers to make their own submissions to the Government in the Conference Hall where the paper, complete with its amended proposals, can be viewed.

REC similarly urged freelancers with businesses to seize the opportunity to present their case to the DTI and explain why they should be excluded as businesses from the protection that is offered to ordinary job seekers.

It warned the regulations were wholly inconsistent with limited company contractor status and independent businesses and that if the Employment Agencies Act is enacted as currently drafted, it could increase the difficulty for businesses to meet IR35 requirements.

Toni Cocozza, Chair of the REC's IT & Communications Division, said at the time: "It is vital that contractors are made aware of the details and potential impact of this legislation. We are calling upon all limited company contractors to make their voices heard by completing surveys sent to them by their agency or representatives, and to express their concerns directly to the DTI. Time is running out."

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Richard Powell, © Shout99.com 2002