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Stock up with tinned peaches and powdered eggs!

September 29, 2011 in AWR, Contractor News, Freelancing, Industry comment, Life, Recruiter News

It’s almost the 1st October and the end of the world is nigh! I have already sent the wife down to Morrisons to clear the shelves of tinned peaches and soup.

For those of you who have been blissfully unaware (e.g. not in recruitment or in the service industry that supports it) then 1st October sees the formal start of the Agency Workers Regulations (AWR) (and you can go here if you need the basics). In very simple terms it means a clock has started ticking, not as some might think, as precursor to doomsday but to the 12 weeks hence (24th of December!) where a vulnerable agency worker can potentially receive equal pay and conditions of a full time counterpart (if one exists). I may sound a bit cynical but the amount of work that has gone into preparing for this has been quite substantial and for the vast majority of Parasol and Clearsky users it won’t make any difference, it will be business as usual. As a very sensible and safe business we were already doing 90% of what the regulations require so most of our work has been in trying to educate and inform in a market which has very interesting views.

So the boring message is that it’s very much carry on as normal at Parasol House and Clearsky towers. We have shiny new payslips for Parasol employees and some changes in terminology but for contractors it won’t be much different. For Agencies, it’s just as dull, were open for business, a model of operation for all those interesting views and primarily a nil cost, no hassle approach to the legislation.

I suspect I will have to write some more as the dust settles in October and the first potential claims emerge (probably in Union backed environments) after December but in the meantime I shall put the peaches in the garage next to the peas that we bought in December 1999.

The murky world of Agency umbrellas

August 24, 2011 in Business Expenses, Contractor News, Industry comment, Recruiter News

It’s been a while since the last post and high time I wrote about the “grey market”. No, not some dodgy Apple kit, in this context it relates to a number of “Umbrella Companies” that are actually owned by recruitment businesses but pretend they aren’t.

Some are relatively overt about it and exist to perhaps serve their own contractor base and/or use group structures “imaginatively”. Others are far less so of course and also have a history of offering very high referral fees to build contractor volumes. Why would a recruitment business send it’s contractors to a potential competitor related business? I’m not saying that there any data protection breaches but is it best practice? I also believe that clearly masking the relationship tells you something, why hide something if it’s a genuine stand alone business? It is difficult to tell at times and any decent Agency would want to look at group structures and associated companies as part of preferred supplier due diligence.  I have seen Umbrella operations bring down related Agencies and vice versa. This happens as a result of one simple fact, it’s not a core focus for the Recruitment business and is a tad harder than you might imagine.

Here at good old Parasol we are quite proud of our independence and I really don’t mind competition, it keeps you sharp. I do mind a lack of transparency and practices in an industry that needs to remain friendly with our legislators. Surely we should all play to strengths and if you are an Agency boss thinking of entering this “easy” Umbrella life then give me a shout, happy to explain how and why you should to do it properly.

Real Umbrella Company feedback

July 14, 2010 in Contractor News, Freelancing, Industry comment

First of all, thank you so much for getting back to me so quickly..I really do appreciate it.
I would just like to say (again!) how impressed I am with Parasol. Although I’ve ‘temped’ on and off for years, it’s the first time I’ve signed up with an umbrella company, and I have to admit I wasn’t sure what to expect! I checked out a few companies first, and the thing that really struck me about your company was how you seemed to be dedicated to providing a great service to your customers. So far I haven’t been disappointed…in fact, the exact opposite! You seem to offer a friendly, helpful, yet entirely professional service…and based on my experience so far I’d be more than happy to recommend you to other people in my position.

When you look after over 10,000 contractors on a daily basis, you don’t always get things 100% right but the thing with Parasol is that we aim for 100% and if it’s not perfect we do all we can to make it so. Sometimes things are outside of our control but we always take ownership, sometimes we do get things wrong but we will put our hand up and rectify it. We got lots of really positive feedback and in 2010 it might seem that “testimonials” are old hat or quite often written by marketeers with little basis in truth. I can hand on heart say that all we have ever published is good honest genuine reaction to what we do and I am proud of our record and the dedication of our teams to consistently deliver service excellence. Here is a real example from today and says so much (I think) about our attitude to peoples livelihoods:

“First of all, thank you so much for getting back to me so quickly..I really do appreciate it.

I would just like to say (again!) how impressed I am with Parasol. Although I’ve ‘temped’ on and off for years, it’s the first time I’ve signed up with an umbrella company, and I have to admit I wasn’t sure what to expect! I checked out a few companies first, and the thing that really struck me about your company was how you seemed to be dedicated to providing a great service to your customers. So far I haven’t been disappointed…in fact, the exact opposite! You seem to offer a friendly, helpful, yet entirely professional service…and based on my experience so far I’d be more than happy to recommend you to other people in my position.”

We don’t ask for the plaudits, but are really happy when we get them as it’s real evidence that we care and are dedicated to doing the right thing.

Interesting times ahead – ir35 to go?

May 24, 2010 in Contractor News, Freelancing, Industry comment, Life

So the dust has settled (for now) and our new masters are setting about making the changes they believe are necessary to improve our economy and improve our lot.

In the recently published coalition document there were probably two of three key specific Contractor related matters that come to mind:

  1. IR35 was mentioned along the lines of tax simplification;
  2. Public cuts;
  3. No mention of Agency Workers Regulations (AWR).

For me IR35 and tax simplicity for Contractors is all about “certainty”.  As drafted, IR35 is subjective and, therefore, using the same set of facts two different views can be taken.  If the legislation was clear and could provide a series of specific tests that then produced a balanced answer and that answer met a criteria level then taxpayers, advisers & HMRC would save a lot of time and certainty would be gained for all.

Cuts – I think that in the short term, public spending cuts may have an impact as certain Government department are forced to reduce temporary headcount and then permanent. Once that round is over, guess where they will probably go to then ensure key projects are then delivered?

I don’t agree with some commentators views that AWR will be removed or stopped. This is European wide legislation and therefore cannot be simply put to one side. It may get some guidance updates (welcome) but I can’t see it going!

Let’s hope the new government can address some of the issues that the flexible workforce faces as in my opinion, they are a crucial part of the UK’s recovery process.

Comparison..I know how Direct Line feel

January 26, 2010 in Contractor News, Freelancing, Industry comment, Recruiter News

Yet another new Umbrella Co popped up the other day and despite myself, I couldn’t help but visiting the website of said provider. Basic marketing premis seems to be cheaper fees than most (they feature a comparison page) and yet remain pretty anoynmous of some key points:

  • Fees are lower than ours but complete lack of clarity of what is included (e.g. insurances) at what levels;
  • No clues as to who is running it – no company reg details on the site – a basic legal requirement;
  • An “online” registration form which asks for bank details on an insecure connection.

I could go on but you get the point – I don’t mind competition at all, but I do feel duty bound to point out some glaring points that should be considered when assessing a provider. These are VERY basic points and when it comes to handling your wages, do some research.