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On Monday (November 20) the Daily Mail ran an unconfirmed story that the Government was considering a proposal to give employee rights to up to four million self employed people whom, the DTI Secretary of State, Stephen Byers, allegedly felt could be abused by big business.
It was reported that the Government would issue a consultation paper before Christmas. However there has been no official confirmation of the story.
It is reported that the plans would cover the IT profession, construction workers, management consultants, university lecturers and seasonal staff such as farm hands and could 'kick in' on contracts longer than a three month duration.
The proposals were criticised by the Institute of Directors who thought they would lead to a flood of tribunals and by the Consertvative Party who said it would lead to more red tape and bureaucracy on an already overburdened business sector.
If the report is accurate, then employment laws including the right to a tribunal for unfair dismissal and redundancy and holiday pay could be extended to self employed people working on contracts.
However, in the absence of confirmation, this could be speculation or the tried and tested Government ploy of 'kite-flying' - by floating an idea and gauging reaction to it before committing to an announcement.
A PCG, spokesperson said: "This is another example of the confusion and uncertainty the Government has created by interfering with the market. In the past contractors and clients were able to come to an agreement with clear understanding on both sides. Now if this is to be believed, the Government wants to create a relationship between the client and the contractor which neither party wants. The contractor wants to be able to operate as a small business on equal terms with his or her large competitors; and the clients want to be able to contract with whoever they wish without uncertainty and confusion.
"Once again this seems to be another Government initiative which only benefits the large consultancy firms who are watching their smaller competitors be put out of business by a Government which professes to support small business."
Meanwhile, on the other side of the Atlantic, Time Warner has reached a settlement with the Department of Labour for $5.5 million
The law suit which was filed in 1998 concerned a claim by the Department of Labour that alleged the media giant illegally denied full-time workers pensions and health benefits by classifying them as temporary or contractors.
Labour Secretary Alexis Herman said the settlement 'compensates misclassified independent contractors and temporary employees for their failure to be properly recognized as eligible participants under these plans' and 'sends a clear message that workers who are asked to perform under the same criteria should also be treated fairly through coverage by a company's benefit programme.'
Time Warner has not admitted any wrong-doing.
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Susie Hughes
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