Now that the consultation period on the draft Agency Workers Directive (AWD) has closed, it seems many in the industry are still unclear about it's potential impact on contractors, recruiters and umbrella payroll providers.
The latest group to hit the headlines are limited company contractors, and specifically those working on an 'inside IR35' basis.
The Association of Professional Staffing Companies APSCo rightly point out that the draft regulations currently propose that limited company contractors are excluded if they are working outside of IR35, but included if they are not.
According to APSCo, this will present a huge issue for paying clients, who may be forced to provide employee rights to a 'self employed' contractor if he or she is subject to an IR35 investigation mid contract. APSCo warns that if this issue is not properly addressed, it could have a serious consequence on the future of the interim worker in this country, as clients will be dissuaded from hiring them in the first place.
It seems that APSCo are not the only ones keen to clear up the ambiguity surrounding this area. Indeed, MP Andrew Miller has recently stated that the policy-makers "don't have an answer" to this issue. He also suggested that the draft regulations are still "very unclear". APSCo says that the policy unit for the AWD were willing to take these issues on board, but they were not able to answer specific questions relating to how it will affect self-employed contractors.
Ann Swain, Chief Executive of APSCo, comments: "The Government has been very receptive to our concerns so far. We welcome the delayed implementation of the Directive until October 2011, but there are still a number of aspects to the draft Regulations which could impose significant costs on recruiters and which we will continue to press the Government to amend."
© 2009 All rights reserved. Reproduction in
whole or in part without permission is prohibited.
Image: Not too
sure by CharlesFred