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Thread: disadvantages of being freelance

  1. #1
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    Apr 2009
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    disadvantages of being freelance

    In Europe, the perceived disadvantages of being freelance have led the European Union to research the area, producing draft papers that would, if enforced, make it illegal for companies or organisations to employ freelances direct, unless the freelancer was entitled to benefits such as pension contributions and holiday pay. In the UK, where the terms of integration in to the EU have and are being hotly debated, this would lead to a significant reshaping of the way freelance work is dealt with and have a major impact on industry; employers would be required either to give freelances the contractual rights of employees, or employ only freelancers already being employed by agencies or other organisations granting them these rights. However, the White Papers that recommend such moves have not yet been adopted in the EU, and the potential impact on UK employment laws is being opposed by key UK organisations lobbying the government to negotiate over the acceptance of EU legislation in such areas

    What are your opinions about the topic?

  2. #2
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    Oct 2007
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    the topic is wrong and misleading the context of the issue. it should have read " the disadvantages of being an employer " because the legislation is more directed towards employers. freelancers can only stand to gain from this legislation. here are my points.

    1. the idea of the legislation is obviously to protect freelancers whom are repeatedly treated as cheap labour by employers and organisations. typically they would "employ" freelancers and would prefer to do so than recruit a permanent staff partly because it is much easier and cheaper to do so. however, some companies do so on a regular basis and seems enjoy a one sided advantage. freelancers who are not having much option on their side go along with the idea, and hope to gain some sort of security from the extended period of the job. the fact that they are not entitled to almost anything at all available to permanent employees is the very reason his legislations is beng considered.

    2. on the other hand, employers are able to obtain extra hand without the hassle of other administrative burden, and are therefore attracted to seek out freelancers for odd and semi permanent jobs. generally speaking, they are willing to part with extra money in return for a job well delivered. there are many circumstances which justifies this act. to setup a company website for example will not require the compay to setup a whole IT department. that would be like setting up a whole factory just to produce the company vehicles. so this is where freelancer hope to earn their living and where companies feel is a better solution for their organisation.

    3. unfortunately, most companies feel that freelancers are surely not entitiled to comany benefits. as they "come and go". forget about a company car, even medical is out of the question. with increasing use of freelancers, it could be that these companies can subscribe to freelance services on long term basis, while essentially leaving the disadvantaged freelance out of the company. these companies are then able to grow healthily while the freelancers may fall ill and with no help for his or her extra burden, other than supposedly extra financial benefit. even then, competition between freelancers have driven prices and rates down so much i doubt most freelancer actualy make more than permanent employees.

    4. given this scenario then, i feel the proposed legislation does provide some means of protection for the freelancers. perhaps not the full company benefits, as permanent and senior company members surely deserve more, but also not totally entirely left out of the company benefits. even janitors benefit more in this score.

    5. however, i do have some concern for the inevitable reduction in freelance rates these companies will surely want to look at, but it is not a major concern, as open competition is a more important factor, hence the impact of these comanies 'stealing' a bit from the payouts to balance their books can perhaps be overlooked for now.

    6. the legislation is a natural outcome of an evolution in the labour industry. i expect more lesgislations in future as more people move ( or asked to move ) into the freelance marketplace.
    this shift of labour force is due to the fact that people do not like bosses, and want to determine their own destiny, and bosses do not want top keep old logs or unperforming employees who cannot deliver on time, but whom they have to keep and tolerate by law.

    7. the end result should be positive for both sides, although the companies may grumble along the way.

    that's it, my 2 sen worth, have a pleasant day.

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