More confusion exists over the Agency Workers Directive (AWD), this time for limited company contractors.
Some people believe that the AWD will exclude contractors that are working through their own limited company, while many in the industry now fear that this is not the case.
Adrian Marlowe from the Association of Recruitment Consultancies believes that the real test of whether an individual is captured by the AWD will rest on whether or not they are truly in business in their own account, and hence operating outside of IR35.
He predicts that agencies will need to verify whether a contractor actually has their own business, rather than simply operating through a limited company. This of course is likely to cause further administration for agencies although the Government are expected to provide guidelines to assist them. Umbrella companies, used by thousands of interim recruiters, are almost certainly inside the scope of AWD.
Recruiters are already facing problems with the impending implementation of the AWD and the planned increase in NICs. Steve Huxham, the chairman of the Recruitment Society is calling on the Government to freeze new employment legislation. He believes that the proposed measures are not helping reduce the unemployment rate.
Mr Huxham has suggested that the unemployment problem could be resolved if every small business was able to hire a couple of extra members of staff.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
Image: Target by wili_hybrid
