EU directive could choke IT skills

The Association of Technology Staffing Companies (Atsco) is warning that proposed amendments to the EU Working Time Directive could trigger a serious skills crisis in the IT sector.

Currently, individual UK employees can choose to opt out of the legislation, which limits staff working time to 48 hours a week.

But EU employment ministers are meeting on Monday (4 October) to discuss amendments that would give unions a veto on the opt-out, in a bid to stop abuse by unscrupulous employers.

Atsco fears that if the union veto extends to contract staff, it will have damaging consequences for employers and contractors alike.

Ann Swain, Atsco chief executive, said: "This legislation is designed to protect workers, but contractors want the flexibility to choose when, where and how they work. Flexibility is vital for contractors as well as for the organisations that employ them.

"Where problems need to be solved quickly they may have to put in a lot of hours in a short space of time. It's not for anybody to tell them they cannot do that."

Any attempt to limit IT contractors' rights to opt out of the directive could also lead to a serious IT skills shortage, added Swain.

"On top of IR35 and the Agency Workers Directive this is just one more piece of legislation that could discourage people from becoming contractors. The market needs to retain a flexible pool of IT contractors if the UK is to meet future skills requirements," she said.

Atsco has been lobbying the government to argue against any union veto on contractors' working hours. Swain admitted the organisation had not been given any assurances from ministers, but said she remained optimistic that the governement would support its position.

"The UK needs to retain a flexible, skilled workforce, so we're confident the government will see that any attempt to remove contractors' right to opt out of the Working Time Directive seriously damages the UK's competitiveness," she said.

Atsco's warning comes a week after the organisation criticised government plans to introduce the Agency Workers Directive, which will compel employers to give temporary workers the same rights as permanent staff.