Computer People admits wording was 'unfortunate'
Computer People and ATSCo have issued statements following UKTECH's breaking of the story of Computer People using IR35 to market their services to clients that directly engaged contractors.
Peter Searle, Managing Director of Computer People said, "The wording of the document in question was unfortunate and we intend to take steps to ensure that a similar incident does not happen again. It is important that we are seen to support the contractor community and our greatest disappointment has been the misunderstandings that have occurred."
Ann Swain, Chief Executive of ATSCo added, "ATSCo takes formal complaints against its members very seriously and this finding demonstrates the thoroughness of the formal and transparent procedures that we have in place."
Computer People claimed that potential clients could avoid employment issues surrounding IR35 if they put an agent between themselves and any contractors. This resulted in the PCG writing a letter of complaint to the Advertising Standards Authority.
Michael Trenchard, an independent non-executive director of ATSCo, of which Computer People is a member, also issued a statement having conducted an investigation into the complaints, saying:
"I have considered complaints received against Computer People regarding the document issued by them concerning the direct use of contractors. I have now received a reply from Computer People and have also had legal advice.
"The complaints referred to agencies trying to force contractors out of a direct relationship with a client and insert themselves as an intermediary.
"The document from Computer People pointed out the risks of engaging contractors directly. Computer People have stated that the document points out risks regarding the Working Time Directive and is factual.
"Following investigation we do not think that Computer People have infringed the ATSCo Code of Conduct but feel that the document in question could have been much more clearly written.
"It is correct that under certain conditions contractors can be considered to be employees according to the IR35 criteria. If a contractor is considered to be an employee then he/she can assert for various statutory rights including the requirements of the Working Time Directive. The document points out that with contractors working through an agency any assertion of employment rights would fall on the agency and not the client.
"It is reasonable for agencies to try and obtain new work by pointing out the advantages of using an agency.
"However, the document in question was not worded in a clear enough way and could be misconstrued. We have brought this to the attention of Computer People who have agreed with the findings. It is essential that ATSCo members word their documents clearly so that no misunderstandings can occur."