At par benefits
Discussions between the government and the unions are underway and in every likelihood, the unions will bring the government round - to entitle the agency worker to the same benefits as permanent employees.
The big question, though is when these benefits will start pouring in.
The difference of opinion
While unions want these benefits to start right away, that is, as soon as an agency worker takes an assignment, the CBI would rather they kicked in after a year.
Agency workers feel a year on an assignment makes an agency worker a permanent worker anyway.
What effect will this have on IR35 and to what extent ?
One can’t help wondering what effect this legislation may have on IR35. If an agency worker really becomes permanent after a year, will that be used as the time period after which contractors become 'disguised employees?"
Holiday pay, pensions and sick pay are important benefits, but the PCG has never really favored it for want of a proper definition of a small business / contractors.
A word doing the rounds is that clients would refrain from taking on contractors due to the huge costs involved.