Agents 'dismayed' at DTI proposals for Agency regulations

Christine Little, responsible for lobbying the Government on behalf of the Agents' representative body, REC, said: 'We are more than disappointed. We are dismayed'

The new proposals concern the restrictive clauses contained in Contracts between Clients and Agents. This allows the Agent to charge a fee if the Client takes on the Contractor within typically a 6 month period of the contract being terminated (either as an employee – temp to perm, or as a direct Contractor, - temp to temp, or as a Contractor with another Agency on the same site – temp to third party)

The Government is proposing that following a 4 week 'Quarantine period' that no 'transfer fee' would be payable or if the Client gives a notice period (which is not defined, but may be longer than 4 weeks and must be in the Contract) then the change may take place without a 'transfer fee' being charged.

Many commentators are of the view that the Agency representative bodies have been concerned that any support of the Contractors in their Campaign against IR35 would damage their chances with the DTI proposals. This attitude has apparently got them nowhere with the Government and at the same time has caused a massive loss in goodwill amongst Contractors. Christine Little goes on to say 'What we have now is no better than the original proposals which mean that the industry has spent the best part of 10 months in consultation to get nowhere'

The DTI have invited comments on their latest proposals and given a closing date of 14th April.

More information can be found at DTI web site