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(Answers from a DTI spokesman)
S99- Why does Alan Johnson, Minister of State for the Regions and Employment Relations and one of the primary people pushing for the passing of the Act, think contractors need protecting from mistakes they might or might not make whilst working for a client through an agency. Personal service companies are already limited companies, often with their own insurance cover, so why pass the responsibility onto the agent?
DTI- "We will be looking at how the Regulations impact on work seekers who operate through personal service companies, in response to points raised in the consultation.
"Suggestions that these are simply businesses and can look after themselves are misleading. Some people choose to operate in this way, but others are required to do so by agencies as a condition of retaining. Even though the worker in such cases is a limited company, in practice such concerns are usually micro-enterprises and represent the principal or only means by which an individual in need of work secures employment."
S99- What sort of feedback has Mr Johnson had from agents over the proposal that they should be liable for their contractors' mistakes whilst on project?
DTI- "The question of liability depends on the individual circumstances of the particular case and what is provided by the contracts agreed by the parties."
S99- What else does the Minister hope to achieve by introducing the legislation?
DTI- "Current regulations are 25 years old. There are many more agencies and temps now. We want to update regulations to reflect the changes in the market since 1976, clarify existing requirements and abolish those that are out of date whilst protecting those at risk by tackling abuses."
S99- How does Mr Johnson feel about the Prime Minster's recent call for Ministers to cut down on red tape for businesses and does he feel he is adding or lightening the regulatory burden being placed on British business?
DTI- "The Government is looking to promote a flexible labour market in which employers and workers work in partnership. This needs to be underpinned by a framework of employment rights that combine security and flexibility.
"Our objective is simpler, clearer regulations, which are relevant to the market of today and of the future. Most of the proposed new regulations are simply designed to be updated, streamlined versions or existing requirements and we propose to repeal those that now appear out of date and unnecessary."
S99- What does he think of Anne Swain's (Director of the Association of Technology Staffing Companies) recent comments that the legislation is not only inappropriate to the industry but also 'badly written'?
DTI- "The draft regulations are a large and detailed package. We have wanted to take the time to get it right as the new regulations are likely to stay in place for some time. That is why we have undertaken two consultation exercises on our proposals. We have also been in close contact with all the interested parties throughout the process."
S99- Does Mr Johnson understand why the Recruitment and Employment Confederation (REC) is unhappy about the legislation and what does he hope to achieve by meeting with them later in the year?
DTI- "It is important to meet with all the key players who have an interest in the regulations. We have met the REC and others as part of the consultation process. The REC has said that the proposals on transfer fees are a reasonable compromise that enables employment agencies and employment businesses to protect their interests, whilst recognising that the Government has protected the interests of temporary workers.
"Our proposals will ensure that individual workers should have the minimum standards of fair treatment to which we believe all are entitled. Hirers, and potential hirers, will gain from reduced recruitment costs. And firms in the recruitment industry will also benefit from increased confidence in the industry."
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Richard Powell, Shout99
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