In particular, contractors are increasingly finding it difficult to go direct to clients, or to stay in their existing direct contracts, as the new regulations could require the client to be responsible for the contractor's PAYE and National Insurance, and would also give the contractor certain employment rights that the client is not prepared to accept - forcing the contractor into using a Resourcing Agency".

How wrong can you get, but unless you are a lawyer, who is to say that it does not sound right (Can you understand IR35? 2 years on and after reading the Anne Redstone 400 pages plus book I would rather have a go at solving Fermat's last theorem !)

Also some evidence for the agency bodies fighting the draft agency regulations. Assuming that the offer of consultation from the Dti is a sham ( Not a bad assumption) and that the draft regulations will not be changed, ASP Resourcing have started to count their chickens with regards to taking business off agents who have done all the hard work.

Q: What if I am already contracting through another Agency:
A: New regulations coming into force will limit Agencies to a 4 week clause in which you, the contractor, cannot approach your existing client for work after finishing your contract. Simply exercise your notice period, take a 4 week holiday, and then go back to your client through Easy Team.

Double "whammy"; for Contractors and Agents all in one email.

Sign of the times I fear. I am sure many readers will be critical of ASP Resourcing, but they are only fulfilling a market need created by a meddling, "nanny knows best" Government. I noted a lawyer making the statement that "Regulations bring clarity". The only clarity they appear to bring are to the bank balances of Lawyers to advise on the morass of red tape and to large businesses who will be able to feed off the back of the hard work of the smaller, hungrier agent.

It is not as if the Government were not warned this would happen:-

From the PCG submission to the DTi in January 2000:

However, we are concerned that increasing agency legislation will tend to work to the
disadvantage of smaller agencies and will result in consolidation of the industry into fewer but larger players.

Our members' experiences suggest that frequently it is the smaller agencies who prove to be better at working with contractors to meet both their needs and those of the end user.

We are especially concerned at the growth in managed agency agreements, which effectively give one agency a monopoly in supplier work seekers to a client, and the worst abuse; the in-house agent. This is an agency set up by the client company. It is often cross subsidised. Developments such as these cannot be in the best interests of the work-seeker. They reduce choice and, we would argue, are further evidence that Clients often use Agents primarily to shelter from employment risks rather than as a means of sourcing the best expertise for a particular task of relatively short duration.

It is but a short step for the larger client to pick up on the idea promulgated by ASP Resourcing. Use the small, hungry agent to find the resources. Check out the contractor, if OK lay them off for a 4-week break and then bring them back via the in house agency (or employment rights firewall!).

Increasing Government regulation has created an environment, so uncertain and with such large penalties for getting it wrong, that no client will engage direct with contractors, even though the Internet has provided the means by which this can happen and to add insult to injury, will create a situation where these "employment rights firewalls" are in the hands of the big companies. Unable to survive in the transparent market conditions created by the Internet they (Big Co) rely on their links with Government to "slip and let loose the dogs of red tape" (AKA civil servants) and hobble their smaller, hungrier competitor.

No wonder those young enough or hungry enough are sailing for distant shores. As for me, I have just bought myself a boat and plan to spend much more time sailing. I would rather tie my own knots than spend any more time untying those made by faceless civil servants from the "nanny knows best" school (Memo to Politicians. "No" is a valid response to Sir Humphrey when he states "Regulation brings Clarity")

I subscribe to the ethos instilled in the famous Inventor; Thomas Edison;

There ain't no rules around here.
We're trying to accomplish something"

Happy sailing

Andy White

Copy of email from ASP Resourcing

ASP Resourcing today announced its new "Easy Team" packaged solution for contractors who already have a client and a contract but need to work through an Agency.

Discover now - how easily Easy Team from ASP Resourcing can add benefit to your existing or to your next contract.

Antonella Spada, from ASP Resourcing, said "New regulations coming into effect from the Inland Revenue are having a big impact on Resourcing Agencies, Contractors and Clients.

In particular, contractors are increasingly finding it difficult to go direct to clients, or to stay in their existing direct contracts, as the new regulations could require the client to be responsible for the contractor's PAYE and National Insurance, and would also give the contractor certain employment rights that the client is not prepared to accept - forcing the contractor into using a Resourcing Agency".

Why should the Contractor lose up to 25% of their income when they already have the client AND the contract...?

ASP Resourcing has recently been approached by clients that have asked us about the feasibility of placing their "direct" contractors within our payroll and contract structure. This has prompted us to develop a packaged solution that is both suitable for our clients and is also fair to the "direct" contractors - The Easy Team Solution.

Q: Who can benefit from Easy Team:
A: You can benefit from Easy Team if:
· you are a contractor, currently in a "direct" contract, and your client now wants to place you through an agency
· you are a contractor and have found your own contract and need to use an agency
· you are a contractor in an existing contract and wish to use another agency to increase your margin
· you are a client with "direct" contractors and want to place them through an agency to eliminate your employer's risks
· you are a client that has found your own contractor and want to use an agency to eliminate your employer's risks
Q: How much will it cost to benefit from Easy Team:
A: The Easy Team solution costs just £200 for each month that you are in a contract, which is deducted from the amount transferred to you, the contractor. You pay nothing in between contracts.
Q: How long does it take to get my money:
A: We can reduce the cost of the Easy Team solution to £200 per month by cutting out the factoring process, which is the biggest cost for agencies. This means that you, the contractor, will be paid immediately after we are paid by the client.
Q: Some clients take a while to pay - what if I can't wait:
A: No problem. We can build in the factoring step as an optional extra and will only charge you for the cost of this.
Q: How can I use this service without my own Company:
A: We can place you with your client using an umbrella service that we are affiliated with. There is no need for you to set up your own company at all.
Q: What if I am already contracting through ASP Resourcing:
A: Any contractors already working through ASP Resourcing are automatically upgraded to the Easy Team solution after their first contract extension.
Q: What if I am already contracting through another Agency:
A: New regulations coming into force will limit Agencies to a 4 week clause in which you, the contractor, cannot approach your existing client for work after finishing your contract. Simply exercise your notice period, take a 4 week holiday, and then go back to your client through Easy Team.