High-tech contractors excluded from agency workers legislation

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  • Nearly 100% of contractors say they want to remain as contractors, not become employees
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  • Vast majority comment that contractor lifestyle is the best

The legislation before Parliament which would oblige all contractors to assume the rights of employee, the Agencies Workers' Bill, will exclude high-tech contractors.

According to Andrew Miller, the MP who is behind the bill, IT and engineering contractors will be able to continue business as usual. The change in the bill, which threatened to drive up costs for companies using contractors, was effected after intense lobbying by the London-based Association of Technology Staffing Companies.

Says Miller : “…we did not want to include providers of professional services who chose to work through agencies…” and that the Bill is “…designed to exclude professional IT contractors and similar people.”

We did not want to include providers of professional services who chose to work through agencies; the Bill is designed to exclude professional IT contractors, engineers, and similar people

Andrew Miller-Labour MP

ContractorCalculator Survey Shows Stiff Opposition

A survey by this website shows that a considerable majority of contractors do not want employee rights, feel they earn more money as contractors, and prefer being a contractor to being an employee. In a series of comments to the survey, contractors said that they love the contracting lifestyle, and don't need the kind of protection imposed by this legislation.

According to ATSCo chief executive Ann Swain, ATSCo has been in contact with Miller throughout the progress of the Bill, and also briefed the Government, backbench MPs and the Opposition front bench, who quoted ATSCo on the need to give special consideration to the technology staffing sector in a key debate on the proposed legislation.

Swain comments: “While ATSCo fully supports protection of vulnerable agency workers, we are pleased that Andrew Miller MP has publicly acknowledged that contractors in the technology sector should be excluded from this Bill. ATSCo has constantly pointed out that temporary workers in IT and engineering usually earn significantly more than their full time counterparts and choose to work as contractors because of the flexible lifestyle benefits. This message is finally getting through to UK lawmakers.''

Temporary workers in IT and engineering usually earn significantly more than their fulltime counterparts and choose to work as contractors because of the flexible lifestyle benefits. This message is finally getting through to UK lawmakers

Ann Swain-ATSCo

Paul Jameson, managing director, of Outsource, the recruitment consultancy which received the statement from Andrew Miller MP, says: ''This clarification was urgently required. There was huge misunderstanding in the technology staffing industry as to the scope of this proposed legislation, which could have seriously damaged the competitiveness of UK plc.''

While this is great news for all of us, the peril is not yet overcome. The Bill will be read in committee in the coming weeks, and we need to see its final form to ensure that this proposed exception will work for all of us. Keep watching this space for news.

Published: Friday, April 04, 2008

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