The recent announcement that employers will have to offer contractors exactly the same basic conditions after just 12 weeks undermines the industryís drive for greater competition in turbulent times, according to Richard Lawrance, Managing Director, Resourcing Solutions Limited. Similarly, resourceful employees who are willing to exchange labour for favourable rates are also being challenged under the new rules.
Richard commented: ìThe fact is that this agreement is counter-productive and can be seen as a political own goal. The decision sees the government simultaneously reaching an outcome that neither favours the employer or employee. The proposal, which originates from pressures from the European Union, does not cover sick pay or pension rights which are the issues which matter to most contract workers.
ìThe new agreement means that small businesses, along with flexible contract workers, are most likely to suffer and represents a climb down on the part of the government, who previously wanted equal arrangements for contract workers from day one.
Richard continued: ìIt was Tony Blair that said that any law suffers from the Law of Unintended Consequence. Our concern is that if employers are put under pressure by a perceived change in the Law, will that then not lead to contract workers only receiving contracts for 11 weeks and 6 days?î
Competitive Britain falls foul of restrictive regulations
New UK employment rules spell misery for workers and employers alike
