A survey published by the IT Division of the Recruitment and Employment Confederation (REC) confirmed the concerns of limited company contractors across the country regarding the Employment Agencies Act. If the EAA is implemented as currently drafted, it could make it increasingly difficult to meet IR35 requirements, and possibly lead to demise of many businesses.
The survey of 261 Limited IT Company Contractors carried out last month shows 88% of respondents overwhelmingly believe the current draft of EAA Regulations would jeopardise their IR35 status. 95% of respondents consider themselves to be independent businesses rather than ordinary ''work seekers''. And despite the DTI''s current consultation, which expires on 1st November 2002, 93% of respondents do not believe there are any benefits to being included in draft regulations.
This perception is due to a widespread feeling among ITC contractors that the EAA Regulations are wholly inconsistent with limited company contractor status and independent businesses. The consequences of which will in fact have a detrimental outcome for the industry rather than helping it.
Commenting on the survey, Marcia Roberts, External Relations Director at the REC said:
The survey supports the REC''s long standing position that higher paid ITC workers as limited companies neither want, nor should be afforded, the same type of protection that is offered to ordinary work seekers in other industries. This survey shows the strength of feeling among the IT recruitment industry. The DTI must listen and take note of their concerns.
EAA Threat to Ltd Company Contractors
Industry Survey shows widespread concern over IR35 for IT businesses