|
The Government has launched a consultation on the Conduct of Employment Agencies and Employment Businesses Regulations 2003 which could have a significant impact on the day-to-day business of recruitment companies.
Whilst the document addresses some positive aspects, the principal area affecting supply recruiters is a proposal to remove the limited company opt out under regulation 32. The opt out has been widely used by many contractors including those operating through umbrella companies. It allows a significant benefit to supply recruiters wishing to avoid administrative procedures and to protect transfer fees since the fact of an opt out removes the need to comply with the Regulations.
Although the proposals in the consultation are “dressed up” as trying to solve the problem of low skilled workers being pushed through umbrella companies, the practical effect of one of the proposals would be to remove the limited company opt out altogether.
The consultation closes on 11th June. As with the Agency Workers Directive, the new proposals demand careful consideration. Most suppliers of limited company contractors will no doubt be highly concerned as will umbrella and service company providers.
Lawspeed's proposal of the opt out to government in 2002 was followed by its inclusion in the Regulations as Regulation 32. The government has already changed the original wording of Regulation 32 in April 2008.
Lawspeed will be holding a seminar in London on the 7th of May to discuss the consultation.
For more information call 01273 236236.
|