12. “ Britain’s Brain Gain” What do you get out of it? www.britainsbraingain.com
13. Thank you Working for yourself doesn’t have to mean working alone www.pcg.org.uk/join
Editor's Notes
Expressing his admiration for people that give up the comfort of a regular wage and strike out on their own
Our membership is circa 20,000 and growing 96% Ltd 2% ST 34% Members working in London and a further 22% in South East 9% working overseas Rest spread across UK with 8% in Scotland and North west
Campaign to highlight value of freelancing continues
We seek Fairness, Clarity etc in the following broad areas, which form the basis of our work ICTs We have been concerned that “intra-company transfer” (ICT) work permits have been used to displace UK contractors. These ‘ICT’ workers may be underpaid, causing undercutting. This practice is against the Government’s immigration rules. Large outsourcing companies have been using these permits, which were designed to bring in specialist workers, to bring in 1000s of low skilled IT workers for supply to companies. It is alleged by some contractors that these workers can be paid less than the equivalent UK contractor. PCG has been lobbying for many years on this issue. The Government has significantly tightened the rules on ICTs with effect from April. Workers on these permits must earn more than £40,000 if they wish to stay in the UK for more than 12 months. This will make it less likely that undercutting will occur. Further changes are expected. The Government is constantly reviewing the rules, and has stated it is unlikely to get any easier to engage such workers. It will be increasing enforcement of the rules. Freelancers are better protected than they have ever been. AWR The Agency Workers Regulations are new laws coming into force in October 2011. They provide for “equal treatment” between “agency workers” and their permanent colleagues with regards to pay, holiday, and working time. PCG lobbied extensively to ensure freelancers were out of scope of the legislation – as it is clearly intended to apply only to low paid “temps”. It was successful in doing so and limited company contractors are effectively out of scope. Umbrellas however will be included The way LTD Cos are excluded could be clearer. The Govt is expected to issue guidance to make the AWR easier to understand in the next few weeks. EU Above is evidence of EU focus on vunerable workers. Employment Committee report to the commission on Atypical Contracts and Flexicurity (headed by Pascale Gruny) fought to have a caveat to get freelance workers removed from atypical/vunerable definition in report.
Recommendations: Suspend IR35 with the intention of permanent abolition, using the period of suspension to investigate behaviours and costs Keep IR35 legislation unchanged, but improve the way it is administered by HMRC To consider the introduction of a new “business test”
Proposals to “improve” administration – e.g. Time limit on investigations, putting in place and enforceable code of conduct, mechanisms for identifying whether in or out of scope
IR35 on the ropes, down but not out PCG continues to lobby on the fairness and for recognition PCG continuing to grow and work hard for you
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