ABTA is overhauling its rules to allow companies with self-employed staff to remain members of the association after a request from United Co-op.
A Newman Street audit last year revealed 100 ABTA members were in breach of the regulation as they are not allowed to have self-employed workers.
The association’s membership committee has now agreed to a request from United Co-op – which has self-employed staff across its homeworking arm Freedom Travel – for regulation to be overhauled to force members that offer self-employment to take full responsibility for their financial affairs.
The self-employed model is mainly used in the growing homeworking sector where staff work on a commission-only basis.
The proposal is being worked on and must be ratified by the board and wider membership at an extraordinary general meeting or annual general meeting.
Because the change is likely to take some time, ABTA is currently turning a blind eye to practice.
He said: “It’s an archaic rule and it is silly to penalise members. If the changes are passed then members offering self employment will have to take full responsibility.”
ABTA member and homeworking firm Holiday Experts managing director Mike Russell backed the proposed changes.
“It makes sense and will be a good thing that will lead to more openness in the homeworking sector. The important thing is the protection of the customer, as long as the customer is covered there isn’t a problem.”
ABTA had hoped the change of regulation would coax leading homeworking firm Travel Counsellors to rejoin the association. Chief executive Mark Tanzer has been talking to Travel Counsellors founder David Speakman about it returning to the organisation.
However, Speakman has ruled out a return to ABTA, saying “we wouldn’t come back into ABTA. The financial protection criteria changes would mean us being tarred by the same brush of not covering the consumer.”
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