Contractor Calculator, the largest independent website specialising in the contacting industry with 80,000 viewers, has calculated that labour costs for UK business will rise from 10-20 per cent if the Agency Workers Directive is passed today.
Our expert, Dave Chaplin, has broken down the costs as follows:
For a contractor who is paid 10 pounds per hour, and who works 47.2 weeks per year, the additional cost of holiday alone adds 10% to what the employer paid previously.
If the worker is sick for a week, the total cost goes to a 13% increase per year to the employer (£2,370).
This makes the extra cost to UK business based on 1.3 million workers averaging £10 per hour: £3,081,281,385 (3 billion).
Dave Chaplin is a former IT contractor in the City of London, and is founder and CEO of ContractorCalculator, and author of the Contractors' Handbook.
Started in 1999, ContractorCalculator (this site) is the leading independent website for the UK contracting industry – most of whom are highly skilled knowledge workers.
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A dedicated Agency Workers Directive Impact Calculator for cost breakdowns under the directive has been put up on our site. Please consult it, and cite Contractor Calculator if you use our statistics.
Or contact Dave Chaplin on Tel. 0871 218 5152 for comment on this issue.
Published: Wednesday, December 05, 2007
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