Quote:
Originally Posted by JeffreyC
How will it affect us? They are already employees with full employee rights (unless you treat yours any different)
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AWD is not only about rights - after 12 weeks (as currently drafted) a contractor (excludes
Ltd Co contractor) has to be compared with a permie equivalent and a number of terms adjusted (potentially). Let's imagine a support analyst on £13 per hour - after 12 weeks he/she could have salary adjusted and benefits changed. Imagine that the perm equivalent receives £15 per hour and a pension benefit.. who will fund that difference?
The draft also suggests that a break in contract (to get around the 12 week issue) would need to be 6 weeks and that paying in between assignments would have to be at least 80% of gross.
Expenses - if a contractor moves to a post 12 week environment - I can see HMRC pushing on validity of expenses on a deemed employment basis.
APSCo have suggested a three times Min Wage carve out should be used (£17 per hour) as an exemption but that would still catch a large number of Umbrella Contractors imo.
Get lobbying!