Speaking to The Guardian earlier this week, Matthew Taylor, who was appointed last year by Prime Minister Theresa May to lead the review into modern employment practices, including temporary contracts and the gig economy, revealed that some of the changes he was looking at included allowing agency workers on variable hours the right to request a permanent contract after a certain period of time.

This proposal would have a “significant impact” on recruiters with temp workers on their books, according to Christopher Tutton, partner at law firm Constantine Law.

Tutton told Recruiter: “The details are not yet clear, but presumably it would be the client that is obliged to offer the agency worker the permanent contract. If so, the impact of this would be to reduce the number of temporary workers a recruiter maintains on its books. The temp-to-perm fee rules would need to apply here to ensure recruiters received some compensation for this.”

Some of the other proposals under consideration Taylor told the paper include:

• Enabling workers to directly contact government to find out whether their employer’s classification of them as self-employed is legitimate and ensuring hiring companies are responsible for proving workers are genuinely self-employed
• Ensuring temporary workers are provided with written terms and conditions within the week they start a role
• Ensuring companies make the number of temp workers they employ public 

In a statement, released today, the Association of Professional Staffing Companies (APSCo) revealed it has provided evidence to Taylor’s review, appearing alongside a number of other stakeholders, including trade unions Unison, the GMB, BECTU and the Institute of Directors (IOD).

In her submission, APSCo general counsel Tania Bowers pointed out that while much media attention has focused on the gig economy, characterised by a perceived lack of job security, employment rights as well as the tax advantage benefits of self employment, the experience of workers in professional sectors such as IT, banking, finance, engineering and life sciences is “very different”.

Bowers also pointed out to the review:

• The benefits of the contractor limited company route, known as personal services companies (PSC), as a route to market offering limited liability to the worker and a means of working in businesses independently. 
• That data shows independent professionals are not driven to become self-employed due to tax incentives but rather a willingness to exchange traditional job security for flexibility and control 
• That contractors in professional sectors are experts in their respective fields that need to be sourced on a ‘just in time’ basis delivering specific services over a limited period for an agreed price enabling employers to manage budgets and workforce numbers as demand dictates.  
   

Bowers also claimed HM Revenue & Customs is increasingly seeking to tax PSC contractors as employees, citing the off payroll rules in the public sector with no allowance by HMRC for the lack of dismissal rights, continuity of assignments, workplace entitlements or employment protections, meaning the determination of employment status is being driven by tax law which she argues is “wholly inappropriate”.

“We want to promote a more positive narrative around responsible recruitment practices and the established routes to market which they offer,” Bowers said. 

“We strongly feel that the benefits that PSC workers bring to the economy makes it critical to both differentiate them within the gig economy and also to broaden the conversation from a solely taxation shortfall perspective.”

Yesterday, The Freelancer & Contractor Services Association (FCSA) called on Taylor to take a considered approach to any new legislation for the self-employed.