EU Agency Workers Directive Could Put Freelancers At A Disadvantage

by Robin Pilgrim, LawAndTax-News.com, London

30 July 2004

Groups representing UK freelance workers have argued that a revival of the debate over the EU's Agency Workers Directive (which would afford temporary workers the same rights, pay and benefits as their permanent counterparts) is likely to have unwelcome consequences for contractors.

It is thought that the Dutch government, which currently holds the EU presidency, is keen to restart the discussions on the matter which stalled following disagreements between member states last year.

However, organisations such as Shout 99 and contracting service provider Giant Group plc have expressed concern that the European legislation, which the UK government pledged not to oppose in order to secure trade union support prior to the last general election, could sweep freelancers and contractors into its remit, thus increasing the cost to businesses of hiring such individuals.

Speaking this week, Matthew Brown, Managing Director of Giant explained that:

"The whole point of contracting is that you don’t want to be an employee but an independent business. People choose to contract because they want the freedom to decide how to manage their own affairs."

"They don’t want end-users being forced to provide them with the same working and employment conditions, ranging from benefits such as pensions to control over rest and holiday periods, as permanent employees. This Directive will undermine that flexibility."

Mr Brown went on to add that:

"If employers have to provide contractors with the same benefits as their permanent staff the cost of using contractors will rise. Employers may try to offset that cost by offering contractors lower hourly rates or simply by cutting back on the number of contractors they hire."

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