Recruiters and umbrella companies are drowning in employment red tape and bureaucracy after 13 years under a Labour government.
This is the view of the Association of Recruitment Consultancies (ARC) who have suggested that the over regulation of the employment market in this country has cost firms nearly £200 billion over the last ten years alone.
According to the ARC, the Liberal Conservatives should focus on delivering their pre-election promise of reducing waste and excessive administration in the SME marketplace. Small firms have literally been flooded with employment regulation and compliance, most of which places a time consuming and unnecessary burden on their business.
A spokesperson from the ARC said that the new Government should stand firm in the face of further EU regulation and guidance. The Agency Workers Directive is the biggest threat to the flexible labour market in this country and both the Tories and Liberal Democrats commited to ending the ‘gold plating’ of EU rules in their election manifestos.
As the way things stand, umbrella companies are seen to be captured under the Agency Workers Directive whereas contractors with their own limited company are outside of the scope. IR35 is still set to be reviewed later in the year.
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Image: The Small Hand that Kills by skippyjon
