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Government Targets Loophole Allowing Agencies to Pay Contractors Less

Posted 27th November 2018 in News For Businesses For Workers

Prime Minister Theresa May has announced she will be continuing with plans aimed at increasing the legal rights of contractors and agency workers as part of a general overhaul on employment laws, focusing on how agencies pay contractors.


The prime minister intends to end a legal loophole that has historically allowed companies and agencies to pay contractors less than full-time staff for the same job.


The announcement comes after Labour promised an extension of worker’s rights, including greater representation on company boards, at its party conference this September.


The government’s proposals include new legislation to give agency workers the right to request a temporary or fixed-hours contract after a period of 12 months, and legislation to clarify the criteria determining whether an individual is classified as self-employed or not.


Business secretary Greg Clark announced that the proposals have been prompted by recommendations from Chief Executive of the RSA Matthew Taylor, in a review commissioned by the government last year.


“There is more work to be done to encourage the government to be bold in living up to its commitment to good work for all,” Taylor stated. “[But] it will make a difference to the lives of the most vulnerable workers and that is what matters.”

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