Thread: I have digested implications of #BrexitDeal for independent software services professionals. Big omissions, still big restrictions. Government was offered the chance to speak to us but never accepted our help. So they have messed up.
2/ Professionals must have 6 years experience and a degree. p 88 of the trade deal states that only direct work business to business or professional to business customer is allowed, thus disallowing project work via agencies... Big mistake.
3/ Most freelance professionals use agencies to source project work, if not agencies a 'broker' for projects for administrative purposes. Trade deal makes no difference between these 2 concepts.
4/ Agencies will not readily show us their mark up fees so we can come to arrangements and pay them a separate finder's fee for the project (ones which do are in a minority), so we could contract direct with the end customer b2b.
5/ #BrexitDeal does not take into account chain laws and chain responsiblity in some European countries, whereby business customers use a broker for the contract paperwork. The broker can look like an agency...Figure that one out.
6/ Massive disaster. Time limitations – up to 12 months only – devalues service levels from UK professionals. Many IT projects will go on for 2 years, especially ones where clients are transitioning to cloud technology
7/ Even more relevant for contracts which deal with maintenance /support which are often long term. Clients will opt for certainty; they hire now for 3 months or more. but know they will need to extend in future as their project is planned to run for 2 years.
8/ The uncertainty and shorter shelf-life of UK professionals means the clients will not hire British consultants unless there is no alternative. These problems are more apparent where a complex system or business area exists which requires deep knowledge transfer or build up
9/ A recent case on social media group, Brexpats, reported of a roll off of 3 British contractors from a project in Eindhoven. The client felt a need to guarantee service levels past Brexit. The British consultants were replaced by EU nationals.
10/ IT service companies perform body shopping requirements for their clients, such as Sopra Steria.
In this case, are they end client or agent? The IT service company does not own project,project is managed by their end client. The IT service company is acting like an agency.
In this case, are they end client or agent? The IT service company does not own project,project is managed by their end client. The IT service company is acting like an agency.
11/ Some IT recruitment firms owned by the likes of Randstad, such as Gulp in the German speaking market, have a hybrid model. They are simultaneously IT recruitment agencies, but also IT service providers.
What is their status in the Brexit deal?
What is their status in the Brexit deal?
12/ Why is the work for agencies not in the deal? Is it because of the EU agency workers 'directive, which states contractors must be paid the same sort of rates as the European contractors in that area?
13/ Customers in IT services, eg Red Hat, do not have time to source professionals themselves+ outsource recruitment of consultants to preferred supplier agencies.
On very rare occasions, large corporates may use part of their HR department to recruit contractors.
On very rare occasions, large corporates may use part of their HR department to recruit contractors.
14/ However, the end clients are very careful regarding paperwork and may place a contract broker in between themselves and the professional... Is that broker an agency on paper? Probably
15/ When clients decide to allow direct tenders, they use their own portals. For Netherlands for example that means you are obliged to have a Dutch BV or self-employed registration with a chamber of commerce number to register on these portals for tenders.
16/ These are commercial registrations which we can no longer have as British nationals outside of the Netherlands without a lot of red tape. A Dutch BV requires 50% of the directors to be Dutch residents, self-employed registration or eenmanszaak requires Dutch residency.
17/ Maximum 12 months at a client is not valid for whole of EU 27. Several impose means/skills test,=market access shrinkage for some professionals. Each EU state decided to make up own regulations on this,indicates #sovereignty over who will gain access to its markets
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