Originally posted by tim123
Problem here is many companys are abuseing that section to cut their legal/financial obligations when the positions/temps really are for all intents and purposes "permanent".
Personally I think that there should be statutory protection in place for these workers.
and this is not helped by contractors taking action against employees for employment rights because they think it is the solution to IR35).
Goverment rightly stepped in, problem was because the companies and large consultancys (the biggest gainers from ir35 as before it they could not compete to well vs contractors cost wise) had more political clout than the contractors, goverment penalised the contractors instead of the companies.
Now contractors are classed as employee's with none of the benefits, but all the costs/regulations/overheads of permanent emploment have been lumped on solely the contractors side with no downside to the companys.
Now this would not have been so bad on the run up to 2000 as it was then a contractors market, they could have just raised their rates and passed some or all of that extra cost back to the clients by raiseing their rates, but it came into force around the same time as the downturn, thus forceing most contractors to absorbe all the costs themselves.
And now 5 years on, the situation is slowly getting worse, instead of working with contractors to make them not IR35 cought we now have companies doing the exact opasite, and why not? No matter how much a contract makes a contractor looks like employee (and thus how much protection it gives the company) they will still never be actually classed as an employee as far as the goverment (but not the tax man) is concerned, thus protecting the company with no downside.
The only way this will ever change is if there starts to be a downside for companies, aka a chance for a contractor to be deemed an employee with all the rights and benefits that entails, then and only then will we start to see companys eager to draw up IR35 compliant contracts, instead of the situation we have now where if they are doing such a contract they are doing us "a favor"
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