Agency rules could disenfranchise limited company contractors, reader warns

I agree with you completely, my letter, published in raising the level of debate, was aimed at the principle that: "The price of freedom is eternal vigilance", against any particular group which may hold power in a democratic system of Government.

I have recently completed a contract in the Netherlands, what has taken place since is of major concern.

The details of my problem are of minor interest to this forum. It is what has transpired since, that stands as a stark warning to all of us, affected by IR35, and any person in this country concerned with Democracy, and fundamental human rights.

If you have worked as a self employed contractor, as a limited company, on contracts of less than two years' duration you are now about to become disenfranchised. The much vaunted rights proclaimed by this administration will not exist for you.

I quote below an extract from an email received by an agency.

THE REC (Recruitment & Employment Confederation) - IT DIVISION

PROPOSED AMENDMENTS TO THE EMPLOYMENT AGENCIES ACT REGULATIONS

The Agency Name, as a member of the REC IT Division, are writing to you to inform you of the government's proposed regulations changes that we believe place particular restrictions on contractors in that the term "temporary worker" now includes

Limited Company Contractors, a business relationship that is prevalent within the IT & Telecommunications sector of the recruitment industry.

The REC has taken issue with the Minister Alan Johnson over this point and has pointed out that limited company contractors should be treated differently from individual temporary workers because they have chosen to operate through a more dynamic business model; a model where they are free and competent to negotiate their own terms and conditions on a business-to-business relationship and not be treated as an employee of the agency or the restrictive practices that this could impose on them.

The REC has sought counsel's opinion on the possibility of challenging these

Regulations on the basis that their effect will be disproportionate to the alleged problem it is intended to resolve, namely the restriction of limited company contractors' freedom and ease to find work. Counsel has advised that there may be grounds to mount a challenge but that evidence will need to be collated to support this argument from our Contractors.

As I stated before, there is a much bigger issue, surely there are grounds here for a joint effort. The principle is one of freedom and human rights.

Listed below is a brief outline history of what has happened to me, and can happen to all of us when IR35 takes hold.

After reading this you may wish to revise your opinion as to whether this administration is unaware of the consequences of its actions, or is pursuing a completely consistent agenda, which is the real third way.

1/ I signed as an agency employee, a temporary worker. In the Netherlands it is difficult to work as a Limited Company, as there is already a system similar to IR35 in operation.

2/ After some 40 days work I left having received no payment of any kind, in expenses or salary since the start of my contract. (I was not the only person in this position, but I could effectively afford to cut my losses.)

3/ Altercations with this agency are in progress, and ARE NOT THE BASIS OF THIS, THAT IS BELOW.

4/ I resigned from this agency, citing constructive dismissal, and breach of contract.

5/ Despite the client's wishes, which were to retain my services, the agency had threatened the client with an injunction, should I continue working, under another agency. The client did not wish (correctly) to become involved in a legal action over this, and reluctantly let me go to fight my battle under what we falsely believe to be UK employment rights.

BELOW ARE LISTED YOUR FUTURE NON RIGHTS.

1/ You cannot go to an industrial tribunal, on constructive dismissal grounds if you have been employed for less than two years. MOST CONTRACTS ARE STATED AS BEING FROM THREE TO SIX MONTHS.

2/ ACAS are specifically prohibited from addressing issues which are restrictions to future work.

3/ Although allowed in other countries. People in our position cannot join the TUC. The Human rights act allows us to form a union, but you would not be affiliated to the TUC. Each individual would have to join the union which best represents their skill set. The TUC may take concerted action on an issue, but this is a matter for the council.

4/ To get back any monies owing, the individual employed on the conditions above has to take legal action at their own expense.

5/ There is an effective Agency Standards Inspectorate. However, this agency does not have the power to get back any monies owed. However, in extreme circumstances it can withdraw a licence to operate.

In summary: This administration has produced a situation where at least 66 000 working people are to lose any rights. The flexible and independent workforce will have been taken back to the early days of employment legislation, without the power to form an affiliated union.

Please view the following set of revealed circumstances:

IR35, which removes irritating people who wish to be self employed.

The situation in the Countryside (Please note that on Wednesday, as the foot and mouth epidemic was starting to reveal the full potential crises, Parliament continued to debate the bill on Hunting with dogs).

The New Agency regulations, which now form an integrated employment policy, preventing the freedom of movement of labour.

The Human rights act, which can be suspended by the European Parliament, as it deems fit (without specifying the circumstances in which this may be legally permitted).

There are so many more that it is pointless to list them, the above will suffice as a flavour.

It becomes obvious that this administration is indeed New Labour, it does not share the concerns with justice that gave impetus to the formations of unions. Nor does it share the concerns of those wishing to create new businesses through self reliance.

We have a much bigger fight than we realised, against an administration which is expert at camouflage and deception.

When viewing any group in power it is always wise to remember that power corrupts. The objective, speed, and extent of this corruption should concern us all.

Fundamental Rights, disenfranchised. castillo 2/03