BusinessPeople In BusinessContractors to get full employment rights

Contractors to get full employment rights

The EU Plans to give IT contractors the same rights as permanent staff, according to a draft directive leaked to the Financial Times.

The plans, which have already been dubbed as unworkable by IT employment agencies give contractors the right to have the same pay, pensions, holiday cover, health insurance, interest free loans, share schemes and other benefits as long-term employees doing comparable jobs.

Currently agency staff are only legally entitled to minimum wage and a holiday allowance and no other employment benefits.

One of the proposals most likely to become law would give temporary employees the right to demand equal pay to permanent employees doing comparable work.

While this is unlikely to affect IT contractors, who often earn more than their permanent colleagues, call centre staff could get much more money.

Job agencies have complained that it would cost them too much to manage because it requires them to allocate benefits pro rata for people who come in to do a day or an hour shift.

The directive also proposes to introduce collective bargaining between unions or professional bodies and employers to determine pay and conditions. Currently, most terms and conditions of employment are agreed between the employers and agencies only.

Employers have also attacked the plan. A spokesperson for the Chartered Institute of Personnel and Development said that ‘Agency workers allow employers to rapidly meet changes in business demands and staffing crises. The EU proposals are wholly inappropriate for the UK. They will restrict flexibility without significant benefit to anybody.’

Trade union groups have welcomed the proposal. A Trade Union Congress spokesman said: ‘Temporary workers in the UK not only face substantial job insecurity but they also often receive far less favourable treatment than those they work alongside.

‘Lack of access to training results in lower skills while lower pay damages the motivation and inevitably leads to lower productivity.’

Related Articles

Shortlist announced for British Accountancy Awards 2017

Accounting Firms Shortlist announced for British Accountancy Awards 2017

4m Emma Smith, Managing Editor
Pimlico Plumbers to take employment case appeal to Supreme Court

Legal Pimlico Plumbers to take employment case appeal to Supreme Court

4m Alia Shoaib, Reporter
HMRC appoints new director generals

HMRC HMRC appoints new director generals

5m Alia Shoaib, Reporter
Submit your entry for the British Accountancy Awards!

People Business Submit your entry for the British Accountancy Awards!

6m Emma Smith, Managing Editor
BDO appoints two non-executive directors as advisers to leadership team

Accounting Firms BDO appoints two non-executive directors as advisers to leadership team

6m Emma Smith, Managing Editor
Ex-HMRC chief to join ICAS council

HMRC Ex-HMRC chief to join ICAS council

8m Emma Smith, Managing Editor
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Settlement reached between Margaret May and CIMA

Accounting Standards Settlement reached between Margaret May and CIMA

11m Stephanie Wix, Writer