New regulations announced by
the Government aimed at making it easier for temporary workers to become
permanent employees are potentially disastrous, claims the Association of
Technology Staffing Companies.
The ATSC warns that the reform
of employment agency regulations will stifle labour market flexibility and
damage employees and employers alike.
A firm will not be charged a
transfer fee by an agency if it recruits staff previously employed for more
than six weeks as a temporary worker, providing at least eight weeks have
elapsed since the original hiring finished.
Agencies will receive no fee if
a temporary worker transfers to direct employment on a temporary basis or if
their contract is taken over by another agency ñ providing four weeks have
passed since the original hiring finished.
Ann Swain, chief executive of
ATSC, said, "If implemented these regulations will herald an unprecedented
period of poaching and predatory tactics in the IT industry. Smaller IT
recruitment companies will be endangered, contractors will be bought and sold
and consolidation will drive out competition."