How to become an IT Contractor - Becoming an IT Contractor

The recruitment industry has welcomed the delay in the implementation of the Agency Workers Directive (AWD). The final regulations for the UK implementation of the EU Agency Workers Directive rules were laid before Parliament yesterday.

The AWD, which will come into force in October 2011, aims to ensure that agency workers will receive the same pay and holiday rights as permanent employees after 12 weeks' employment.

However, although small businesses (including limited company contractors) will not fall under the new rules, agency workers working via umbrella companies will as things stand.

One of the major recent developments is the fact that the Government has agreed not to impose potentially damaging restrictions in the form of a 'reasonableness' test on the fees charged by agencies.

The Recruitment and Employment Confederation (REC) says that this would have been extremely difficult to enforce and therefore welcomes the decision to maintain the status quo.

Recruitment industry comment

Commenting on yesterday's outcome and on the implications for the UK recruitment industry, Kevin Green (REC's chief executive) commented:

"The positive outcome on temp to perm fees and the delayed implementation date are vital wins for the industry. We are pleased that a number of the practical recommendations from our Agency Work Commission have been taken on board despite heavy trade union pressure. There are a number of areas in the final regulations that give cause for concern and our priority now is to work with Government on the official guidance documents to influence the way that the new requirements on recruiters will be interpreted..."

Highlighting some of the ongoing areas of concern for the industry, Tom Hadley, REC Director of External Relations, said:

"There are some real positives for the industry in addition to the implementation date and temp to perm fees - in particular the exclusion for self-employed workers. However, a number of areas, give cause for concern such as a wider definition of pay and the issue of short-term repeat assignments which could result in temporary workers acquiring equal treatment rights with several hirers after 12 weeks of an assignment..."