IT Contractors now Outside EU Agency Workers Directive Good News


Not For Us

Contractors with limited companies, which is 98% of the total, will not now be covered by the Agency Workers Directive after a vote in the European Parliament.

Most contractors will consider this to be good news. They want to be left in peace to get on with their small businesses and free from Government and EU regulation.

Help for Temps

According to Richard Herring of Atsco and Reed Technology Group:

‘The proposed Directive suggests that terms and conditions of agency workers should be determined in comparison with permanent staff in the company to which they are assigned. Currently, in the UK, pay and conditions of temporary workers are determined by the employment agency usually taking into consideration the terms and conditions of other comparable agency workers and market forces. Generally this results in many agency workers (particularly in the IT sector) receiving higher levels of benefits than a comparable worker in the user company.’

This will only apply to those that do not have limited companies. It‘s very nice of the EU to try to look after our interests, but most contractors would much prefer to be left to look after their own – as most small businessmen and women do, as opposed to ‘˜disguised employees‘ who could probably do with some protection.

Plenty of Good News

There‘s been a plethora of good news recently for contractors with the Lime-IT decision blowing a huge hole in IR35 legislation, and with the Fast Track Visa system being suspended and all IT Skills taken off the Skills Shortage list. This is just one more piece of good news.

Now what contractors would like to hear is that the economy is recovering and job vacancies are rising.

Share News

See also our Share News section which has the article Harvey Nash Profits Tumble – See No Sign of Market Improvement and an update to our Make a Million in Four Years series which showed that our portfolio of IT shares made 6 grand last week.

See also our General Forum for comments on this article.