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Home Office

Answer

Gregory Barker: To ask the Secretary of State for the Home Department how many documented cases his Department have received from the Professional Contractors Group relating to employers in the technology sector importing labour from abroad in an effort to reduce employment costs; and what steps are being taken by his Department to ensure that the work permit system is not abused in this way. [66015] Beverley Hughes: In March 2002, the Professional Contractors Group (PCG) provided Work Permits UK (WPUK) Allegations team a dossier of 85 cases (relating to 61 separate employers) specifically relating to the replacement of United Kingdom Information Technology contractors with lower paid employees from overseas. Most of the cases are complaints about employment policies of employers, rather than specific allegations of abuse of the work permit arrangements, and as such it does not warrant any further action by Work Permits (UK). 12 cases contained specific information about abuse of the work permit arrangements, and these are being pursued by WP(UK). A list has been returned to PCG setting out whether cases continue to be investigated. The overall aim of the work permit arrangements is to strike the right balance between enabling employers to recruit or transfer skilled people from abroad while safeguarding the interests of the resident work force. However, the arrangements cover only those vacancies which are to be filled by an employee working on a PAYE basis, and as such, there are safeguards to ensure that resident workers willing to work on such a basis are not disadvantaged. In the cases provided by the PCG, it is apparent that the majority refer to a `contractor' being replaced by an incoming `employee' (under PAYE). It is a commercial decision by the employer whether they offer employment terms on a self-employment, contractual or direct PAYE basis.

Secondary information

Type

Written question

Reference

389 c107W; 66015

Session

2001-02

Subjects

Contracts Costs Employment ICT Immigration controls Industry Migrant workers Technology Work permits Professional Contractors Group

Link

View this Written question on www.publications.parliament.uk