The Professional Contractors Group (PCG) has developed an Approved Contract scheme for recruitment agencies that specialise in supplying freelance contractors and consultants to their clients.
The aim is to facilitate the availability of standard, commercially sound, business-to-business contracts suitable for freelance businesses operating outside IR35.
In order to gain PCG approval, a standard agency contract must represent an acceptable model contract when reviewed by both IR35 and commercial experts and when it is deployed in standard form must also reflect the real contractual relationship between the parties and cannot be contradicted by other factors.
Richard Robson, PCG special projects director, says, “PCG’s Approved Contract scheme offers a win/win solution for agencies and contractors, and will allow both parties to get on with managing their respective businesses instead of wasting time and money on circuitous and wearisome contract debates.
....scheme offers a win/win solution for agencies and contractors....
Richard Robson - PCG
“Freelance contractors and consultants prefer to work with those agencies that recognise the implications of IR35,” he continues, “and supporting PCG in representing the freelance community and taking it seriously will be seen as a positive attribute for participating agencies.”
Since its launch, three major agencies have signed up for the scheme and passed PCG’s stringent tests.
Bernie Potton, managing director of SQ Computer Personnel, says, “It is a pleasure to work with PCG and Accountax in providing contractors with a pre-approved IR35-friendly and insurable contract. We believe that PCG’s Approved Contract scheme will be of great interest and value to PCG members and non-members alike.”
“Pendragon has been a member of PCG for many years and wholeheartedly endorses its dedication to championing the freelance community,” says Maxine Preston-Allen, managing director of Pendragon Information Systems. ”We are honoured to be one of the first employment businesses to carry the PCG logo on our contracts and are already promoting the scheme which we believe will be welcomed by our clients and sub-contractors alike as a reassurance of our integrity as a business adviser.”
According to Derek Wreay, managing director of Wreay International Ltd, “With this scheme, you can be assured that your agent has taken the time and trouble to ensure that its paperwork is balanced and fair to contractors, and not exploitative in any way. This has to be a promising start to what should be a long and profitable relationship, based on mutual professional respect.”
Source: PCG