The Recruitment and Employment Confederation (REC) has announced the establishment of a new commission aimed at advising the government over the implementation of new agency worker legislation.

To be comprised of recruitment industry specialists, employment law experts and business leaders, the independent body will serve as a half-way point between the government and private organisations, with parallels being drawn to the Low Pay Commission, which advises on minimum wage legislation.

Welcoming the new commission, CBI director general Richard Lambert stated: "There is much work still to be done to ensure that any new rules on agency work do minimal damage to firms and agency workers.

"The REC's new commission will provide a valuable contribution to that process."

Among the key issues to be addressed by the commission prior to the EU rules coming into effect in 2010 will be how the legislation will affect small employers with no formal pay bands in place as well as how best to see limited company contractors exempted from the initiative.