Brussels threat to freelancing

Two small business groups have reacted with alarm at the publication of a European Green Paper, amid fears that under the new proposals, all working relationships would be treated as a form of employment.

The Professional Contractors Group (PCG) claimed that freelancers and the self-employed face an uncertain future as a result of the Green Paper and that it threatens to lead to restrictions on the flexibility that is vital to many workers' livelihoods. While the Forum for Private Business (FPB) greeted the measure 'with alarm' and expressed its concern that it could ignore the reality of many working relationships.

The aim of the European Commission is to promote a public debate, but it is feared that it could result in a proposal for a directive to restrict freelancing and self-employment.

The International Labour Organisation recommended in June that employment law should not interfere with commercial relationships - which is the kind of relationship freelancers and the self-employed have with their clients. But the European Commission has not been able to address this issue with similar clarity and common sense.

Instead, the Green Paper seems to treat all working relationships as a form of employment and advocates a model of 'flexicurity' to combine flexibility and security, which risks lumping commercial relationships and employment relationships together in a way that could confuse and damage both.

Flexibility

PCG's policy officer John Kell said: "Freelancers currently enjoy the freedom to go from client to client providing a flexible set of skills in a way that benefits all concerned.

"This flexibility is vital to maintaining the dynamism of the UK's economy, and that of the EU. This Green Paper talks about bringing this way of working within the scope of employment law - this could throw up all sorts of barriers to totally legitimate ways of working.

"We agree that flexibility and security need to be balanced, and certainly don't want to pursue flexibility at the expense of vulnerable workers. But any new legislation based on the vaguely-defined ideas in this Green Paper would probably sacrifice flexibility in the name of security. We hope the Commission will use the consultation to develop a clearer understanding of modern ways of working."

The FPB shared those concerns. Its Chief Executive Nick Goulding said: "Such a system would seriously restrict the ability of businesses in certain sectors from taking advantage of flexible working arrangements without being swamped by unnecessary amounts of employment legislation".

Part of the problem between the UK and the EU on these matters is that the UK has a much more mature freelancing community than the rest of Europe, where in the past, there have been moves to protect freelancers or temp workers from employers who are seen to be using a 'temp structure' to avoid employment rights.

The Green Paper is available online - pdf.