Historically, the relationship between IT contractors and recruitment agencies can probably be described as at best tense and at worst downright antagonistic. Both sides have been guilty of questionable behaviour but while they needed each other equally, a status quo was established.
During the downturn, it seems agencies have enjoyed unparalleled power over their supposed clients. Contractors claim they have had unfair restrictions imposed on them, including agencies not paying them in certain circumstances and charging large transfer fees to dissuade companies from offering them permanent positions.
However, legislation introduced in April this year appeared to have the potential to tip the scales back in the favour of the contracting community. Termed The Conduct of Employment Agencies and Employment Businesses Regulations 2003, it imparts various benefits to temporary workers, including more flexibility in moving between temp positions and permanent roles, and various payment guarantees.
"In the future, everyone who uses the services provided by agencies and employment businesses can have greater confidence in them - both those companies that use them to supply staff as well as the agency workers themselves," said employment minister Gerry Sutcliffe in a statement at the time. "The vast majority of agencies are well run but we are ensuring that they do not face unfair competition from those who abuse their workers."
But it has emerged that some of the more unscrupulous agencies are putting pressure on contractors to opt out of the regulations or face the consequences. Tactics include reducing the pay rate of contractors who opt in or offering them unreasonable contracts.
Full Article:ZDNet