By Jean Eaglesham, Legal Correspondent
Published: August 18 2000 19:09GMT | Last Updated: August 18 2000 20:28GMT

The UK government has bowed to industry pressure to change its draft rules on 
companies' monitoring of e-mails and phone calls being introduced under the 
controversial Regulation of Investigatory Powers Act, governing surveillance by the 
police. 

It is also "urgently discussing" ways of extending the four week consultation period 
on the rules beyond next Friday. The change now agreed will allow companies to read 
messages sent to employees who are on holiday or off work ill. 

The government had hoped to rush through the draft rules in time for the October 2 
implementation of the Human Rights Act. The existing law on police phone tapping 
failed a challenge at the European Court of Human Rights and the Home Office is 
adamant that the RIP Act should be in force on October 2. 

But the draft rules on business monitoring have attracted criticism from industry and 
employee representatives. The Department of Trade and Industry said last night it had 
identified some options for extending the "unusually brief" August-only consultation 
period, which it was "urgently discussing" with the Home Office. 

The DTI has also agreed to meet one of the principal industry criticisms. The rules, 
as they stand, would make it illegal for businesses to check up on employee e-mails 
and phone calls without the consent of both the sender and receiver. There are only a 
few, narrowly defined, exceptions to this "no consent" rule. 

This would make it impossible for companies to read e-mails received by people who are 
away from the workplace, since there would be no way of checking whether the sender's 
consent was required or had been given. 

The DTI said the regulations would be changed to "make it clear businesses are able to 
monitor communications such as colleagues' e-mail accounts in order to check whether 
these are business messages that need to be dealt with in their absence". Employees 
would have to be informed such monitoring might occur. 

The Confederation of British Industry, the main employers' organisation, on Friday 
night welcomed the news of the climbdown. But it still wanted to discuss with the DTI 
other issues arising from the rules. 

Industry groups have commissioned lawyers to look at whether the legal basis of the 
rules is flawed. The government claims European legislation - the Telecommunications 
Data Protection Directive - requires it to legislate on companies' surveillance. 
However, lawyers have questioned whether that directive extends to private, as well as 
public, networks. Lawyers also warn the regulations could trigger human rights 
challenges by employers and employees.




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