2 ms·
It's weird that the US didn't catch up with the UK how to "solve" the "problem" of unions. You see last year we got changes to a law that is called "IR35" which
by varispeed 6y ago
It's weird that the US didn't catch up with the UK how to "solve" the "problem" of unions. You see last year we got changes to a law that is called "IR35" which essentially says that people working like employees should be taxed as employees. Nothing wrong with that - until now (I simplified this), if someone had a business of providing a service (for example bespoke software development) and if they realised their relationship with the client is of the employment in all but name, they had to declare themselves in scope of IR35 and pay the tax accordingly. Person inside IR35 has to pay all the taxes employees pay, but they don't have any employment rights (because they are not employees). And here is the genius twist - someone thought, what if the decision about the relationship is made by the client? That sounds innocent, right?
Now (from April) a company can start hiring contractors instead of employees and write their contracts in a way that will make them always caught by IR35 (and declare the relationship as such). Since contractors are not protected by any employment laws, such de facto employees cannot form unions, can be hired and fired at will and don't have other protections - for example if your "employee" gets pregnant, they can be fired without consequences.