New directive could put an end to the self-employed contractor model in Europe. Is the UK next?
Many staffing companies, AOR/EORs and platforms may need to start planning changes to their commercial models soon
By Osborne Clarke Workforce Solutions
A European Union directive, likely to be in force next year, means that many self-employed contractors and gig workers in Europe engaged via staffing companies, employers-of-record (EOR)/agents-of-record (AOR), and digital platforms will have to be engaged as employees.
In addition, various new transparency requirements will be introduced in relation to how technology is used in the recruitment process.
This will force many staffing companies, AOR/EORs and platforms to change the way they operate in Europe. If the directive works, a new government in the UK may be tempted to replicate it in the UK.
Read the full report here.
Looks like the EC is going to shoot itself in the foot in a way worse than the UK has with IR35. Maybe the UK should reverse some of the IR35 rules to enable it to win some of the business that will inevitably leave the EC.