Green calls contracting loophole for illegal immigrants ''preposterous''

Contractors Handbook

In an interview with ContractorCalculator, Conservative Shadow Minister for Immigration Damian Green said that allowing illegals to work as contractors is ''preposterous.''

Contractors Not Included

''Here we have a Government that is announcing supposedly strong measures to combat illegal immigration, yet none of these measures addresses illegals who work as contractors. That is patently absurd,'' Green said.

ContractorCalculator reported on 11 January that the new proposals by the Government to prevent UK employers from working with illegal immigrants did not prevent them from signing up illegals to contracts for services. Several lawyers specialising in employment law and immigration affairs concurred that any such proposal was missing from the legislation.

Home Office Replies

So we asked the Home Office why this was so? And a Home Office spokesperson replied to our Jan 11 story:

''The current measures to prevent illegal migrant working in the UK, under Section 8 of the 1996 Act, will be replaced by sections 15 to 26 of the Immigration, Asylum and Nationality Act 2006 (the 2006 Act) on the 29 February 2008. These provisions will build on section 8 by implementing a civil penalty scheme for employers who knowingly employ an illegal migrant worker.''

Here we have a Government that is announcing supposedly strong measures to combat illegal immigration yet none of these measures addresses illegals who work as contractors and that is patently absurd

Conservative Shadow Minister for Immigration Damian Green

''The new provisions will include a new criminal offence for knowingly employing an illegal migrant worker. Employers will be required to check the ongoing work entitlement of their migrant workers and may face a two year prison sentence and/or an unlimited fine if convicted.''

''Where an individual enters into a contract for a service, there is no employment relationship between the contracting parties. We understand that to apply a requirement to check legal status on those who are not employers would be unreasonable and impracticable. For this reason, both the existing and the new provisions on preventing illegal work are directed at employers.''

''Migrants who undertake a contract of service in breach of their immigration conditions commit a criminal offence under section 24 of the Immigration Act 1971 and will face a criminal conviction, a six month prison sentence and a £5,000 fine. The Border and Immigration Agency will also look to remove or deport him or her.''

Circumvents Entire Effort

But as Green commented, it is simple enough to switch the status of illegal employees to illegal contractors and thus to circumvent the purpose of the entire legislative and enforcement effort.

This circumvents the purpose of the entire legislative and enforcement effort

Conservative Shadow Minister for Immigration Damian Green

Legal observers and experts agreed entirely with Green. ''It is difficult to see why the Government should leave contracting out if it intends to keep illegals from working,'' says Adrian Marlowe, managing director of Lawspeed, the Hove-based legal consultancy which specialises in recruitment affairs. ''Many businesses in our industry make a routine effort to check on the status of the contractors they work with. This could easily become a statutory obligation.''

Green intends to take the matter up with the Ministry in Parliament as the debate on the new immigration measures continues. Watch this space for further information.

Published on Thursday, January 17, 2008

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

ContractorCalculator: Contracting news in brief ContractorCalculator: Contracting news in brief

News this week includes a challenge to the Agency Workers Regulations and upswings in IT contractor demand plus mixed news about the UK’s recovery.

Contractor guide to completing a statement of capital Contractor guide to completing a statement of capital

What is a statement of capital and how should they be completed by limited company contactors?

What contractors need to know about investing through their contractor ltd company What contractors need to know about investing through their contractor ltd company

Contractors can build up large sums in their limited company, but James Abbott of Baker Watkin warns that investing this cash can mean higher taxes.

Contractor guide to new model articles of association Contractor guide to new model articles of association

As part of the changes introduced by the Companies Act 2006, limited company contractors should consider updating their articles of association.


  
     

  
  

Advertisers

ClearSky Accounting DarwinPay Hiscox ClearSky Accounting AM Limited ContractorCalculator Marketplace Contractors Handbook
  
IR35 Tax Contracting Special
  

Advertisers

Parasol - umbrella company

The UK’s favourite umbrella company. Award winning service, fast set up.

Darwin Pay - up to 88% Return

Contractors can take home up to 88% of the contract safely.

Tarpon – IR35 Umbrella Company

Increase your earnings today. Try our free salary calculator now.

Contractors Handbook

The expert guide for UK contractors and freelancers

Bedouin Group

No more IR35. Retain up to 85% of your earnings.

NA Bedouin Group D J Colom Accountants Contractor Financials NewsNow
  
Darwin Pay
IR35 Tax Contracting Special

  

The UK's leading contractor site. Independently audited traffic (ABCe) – 107,479 monthly unique visitors.