The agency workers directive could have an adverse affect on contractors working in the oil and gas industry according to the Aberdeen and Grampian Chamber of Commerce.
The oil and gas sector is in a transition period where flexibility is essential, Peter Sharp from McGrigors’ law firm, told the AGCC recently. This backed up the Chamber’s findings that there had been a marked difference in the effect the recession had on permanent and umbrella company workers
The AWD is due to be enforced in October 2011 and has already been the cause of much controversy. Many experts believe that the regulations were drawn up without taking into consideration the impact they would have on certain sectors.
The REC is also concerned that a review of the AWD will be delayed as a result of the political negotiations that are currently underway to form a new government. A spokesman from the REC said we were now in a “political twilight zone” that could affect the number of contractors working in the UK.
The chief executive of the REC, Kevin Green, says that short-term cuts are not the answer. Reducing the budget deficit and reforming the public sector should be prioritised and this would be best achieved by employing innovative ideas to improve productivity.
The REC will be concentrating on promoting the positive benefits of using contract workers to new MPs over the coming months.
APSCo has voiced their concerns that temporary workers and contractors will cost more once the AWD regulations come into force. Their chief executive, Ann Swain said she was disappointed that none of the main political parties had made commitments to improve employer flexibility.
However, she is encouraged by the news that both the Conservatives and Nick Clegg’s Liberal Democrats have not explicitly endorsed the AWD. She hopes this could lead to the regulations being amended prior to implementation.
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