The Government put in steps that effectively made Agencies Abolished.
A late night bill last night, in the House of Commons, made it illegal for agencies to take money from clients for supplying IT Contractors.
It makes null and void every contract between IT Contractors, the agencies and the clients.
However, it doesn’t make clear what happens now. It suddenly invalidates tens of thousands of contracts up and down the land.
Renegotiate wiht Clients
It is likely that the vast majority of clients will simply renegotiate with IT Contractors. They’ll come to some kind of arrangement with the contractors.
Conractors should to do this immediately as their contracts become invalid on April 30th.
Agencies Abolished with Immediate Effect
The immediate effect is that it will simply allow the contractors to have all of the agency percentage, according to legal experts. That’s because agencies can no longer legally charge for this service.
So, will agents simply disappear?
The answer to that is No.
Changed Role for Agencies
However, the role will change.
Contractors don’t have time to look for jobs, so a future agent’s role will be more like agents for actors or foorballers. They’ll genuinely represent IT Contractors – taking cuts of 10% for getting them jobs or taking a fixed fee for it.
This is certainly a landmark day in the IT Contracting industry.