Umbrella Companies | ACR changes need to cover umbrella workers, says REC

ACR changes need to cover umbrella workers, says REC

The Recruitment and Employment Confederation says that there needs to be protections for umbrella company contractors in the Agency Conduct Regulation overhaul.

The Red Tape Challenge instituted by the Government in 2010 in an effort to reduce the number of hoops firms need to jump through in order to do business in he UK has settled its eyes on the ACR rules, opening a consultation the subject that runs until 11 April. Reforming regulations, trimming them down, and outright eliminating them altogether in order to replace them with less restrictive ones are all possibilities under the consultation, and the REC says that the Government needs to take steps to ensure that umbrella companies reap the benefits of any regulatory reform.

According to the REC’s mot recent online poll, an overwhelming 97 per cent of respondents said that it was a priority to have any regulatory changes affect umbrella company contractors in a positive light. The current proposals are, according to the language, set to re-regulate ’employment businesses and employment agencies,’ but with umbrella service contractors occupying a unique, sometimes amorphous space between freelancer and permanent employee, recruiters are keen to ensure that any relaxed or reformed regulations will impact umbrella contractors in a positive manner.

I really can’t agree more with the REC, as umbrella workers definitely need as much help as they can get. Contractors and freelancers are oftentimes left out in the rain when it comes to regulatory protections, so their inclusion in what could be very important reforms may offer them a serious leg up when it comes to seeking work and keeping it – and with the economy being in the state that it is, this is incredibly important right now.

yes, it’s true that interim workers do have some small advantages in the recruitment and employment sector, especially because a large number of firms are keen to use a contractor for a project instead of taking on an additional permanent employee. It’s more cost-effective for an employer to use the flexibility of a temporary worker to his or her advantage, and it makes contractors happy by generating revenue, but even this advantage is obviated by the fact that more and more employers are being so hard-pressed by the current economic environment that they can’t necessarily afford to keep their doors open without struggle, let alone take on a contractor or two to finish up some projects for them!

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