The postponement of the implementation of the controversial Agency Workers Directive should be used by the Government to sort out its contradictory approach to contractors and agencies according to a leading IT Contractor Accountant.

Barry Roback, Chief Executive of JSA, says that while he welcomes the fact that the British government has managed to kick the controversial legislation into touch for the time being, he believes that it is too early to assume that the legislation is permanently dead in the water.

The proposed legislation, which was first floated in 2002, would have given temporary workers the right to the same pay, holiday cover, sick and maternity leave and other benefits enjoyed by permanent employees.

"While it is most welcome that our Government has become the champion of the self-employed" says Roback, "the fact remains that many of its policies over the last few years have been poorly thought out and contradictory. While there is no doubt that there has been serious abuse of the tax system in recent years by a relatively small number of contractors and their agents, and that the Treasury was right to take action, the fact is that much of the subsequent legislation has been poorly drafted and executed, making conditions for temporary and contract workers increasingly difficult."

Roback is unconvinced that despite its protestations in the European Union, the UK Government has a much better understanding of a genuinely free labour market than its fellow EU members. "While the origins of IR35, transfer of debt provisions and the Managed Service Companies legislation were based on a genuine attempt to close some serious tax loopholes, the fact remains that the legislative results have conspired to complicate life for contractors, agencies and end-users. The newly-created Department for Business, Enterprise and Regulatory Reform (BERR) must try and persuade The Treasury that a genuinely flexible labour market needs less rather than more legislation. On past experience, the omens don't look too good."