Background information on election issues / policies affecting the knowledge-based sector

IR35
Obviously this remains at the top of the agenda. Members should use the opportunity to push on the continued uncertainty . Evidence of the time and cost expended to jump through the hoops to prove your business to be outside IR35 would also help push home the message. The PCG have already met with the IR and are planning more meetings in an attempt to maximise certainty. We have also lodged notice for leave to appeal to the JR judgement.

The Private Security Industry Bill and the review of the IT sector
The PSI Bill is an enabling Bill, much as IR35 had first to pass through Parliament in the Welfare Reform and Pensions Bill, before the main legislation was placed before Parliament.

We have been told by the Home office there is no intention to target IT security under this bill but that it would be impossible to specifically exclude it to definitional difficulties.

However, as we know, the DTI are planning a review of the IT sector. The Home Office are aware of this and would await the outcome of this review. So if the Home Office change their minds and decide the IT sector could come under this legislation any decision would be based upon the review of the IT industry.

We need to ensure we are key players in that review and the General Election gives and ideal opportunity for PCG members to put the issues across to prospective MP's so when it does happen, maybe next year or the following, MP's are fully aware of how essential it is that we are involved.

The Fixed Term Working Directive
This is a mandatory European Directive aimed at preventing workers on fixed term work being less favourably treated than permanent employees. It has to be implemented in the UK by 10th July 2001.

The definition of whom the directive will apply to has not been settled and there is a real risk that contractors may find themselves subject to the regulations. The potential effect would be to give contractors unwanted employment rights which would make it difficult for us to take on contracts without becoming employees of agencies. This could lead to employment rights which could lead to a contract being caught under IR35.

The PCG are making representations to the DTI before the May 31 deadline but members should ensure all elected MP's are of the threat to our industry as this issue is bound to rumble on .

More information on the Fixed Term Working Directive can be found in the Political Director's Strategy

 Forum Link (having problems?? have you read this...)

Employment Agency Regulations
We have made a detailed submission on this and are planning to follow it up with more meetings with the DTI.

The regulations, as currently worded, could threaten our ability to remain in business outside IR35, and all elected MP's should be aware of the affect this would have on the IT and engineering industries. The legislation is also opposed by the agencies themselves.

Full details of the effects and our submission can be found;

 Here

Submission

 Forum Link (having problems?? have you read this...)
(Explanation and problems of regulations as currently proposed by Gareth Williams)