Cost of using contractors 'set to rise'

Date: 4th May 2010

British businesses in a range of industries could be among those to be affected by the rising cost of using temporary and contract staff.

According to the Association of Professional Staffing Companies (APSCo), the cost of hiring contractors to complete projects is set to rise after this week's general election.

In an interview with freelancer information website Shout99, Ann Swain, APSCo chief executive, said: "It is disappointing that none of the three main parties are committed to improving employer flexibility at a time when the number of permanent vacancies has not yet recovered to pre-recession levels."

The expert highlighted the pending implementation of the EU-inspired Agency Workers Regulations (AWR) as a reason for the rising costs.

"Encouragingly, neither the Conservatives nor the Liberal Democrats explicitly endorse the AWR, suggesting that there may be an opportunity to get the regulations amended after the election prior to their implementation in 2011," she added.

Posted by Jacob Williams