New BIS proposals unveiled to curb late payment
28 November 2014
Recruitment agencies’ ongoing nightmare of late payment from clients moved a step closer to closure yesterday [27 November] with the unveiling of new proposals that will oblige large and listed companies to publish detailed information about their payment practices and performance.
Fri, 28 Nov 2014Recruitment agencies’ ongoing nightmare of late payment from clients moved a step closer to closure yesterday [27 November] with the unveiling of new proposals that will oblige large and listed companies to publish detailed information about their payment practices and performance.
The proposed changes will provide what the Department of Business, Innovation and Skills (BIS) described as “robust information”, making it easier for small businesses to compare the role models with the less reputable ones. The Association of Professional Staffing Companies (APSCo) said today it welcomed the proposals.
“This measure will give suppliers the information that they need to negotiate fair contract terms, challenge unfair terms and better plan when to expect payment,” a BIS statement said.
“It will also increase competitive pressure to improvement payment practices and policies in line with peers. And it will encourage businesses to process their payments more efficiently.”
Specifically, the information will outline:
BIS is also proposing that firms report on five additional areas in what it called “narrative form”. They are:
The new reporting requirement was developed in response to feedback from an earlier consultation, where “a clear majority” favoured increased transparency, BIS said.
In announcing that it welcomed the proposals, recruitment trade body APSCo added a note of caution saying, “although… we would not want the measures to be over burdensome”.
In October, a newly-established advisory board on the pay issue met to discuss the Prompt Payment Code. The BIS statement said it plans to implement concrete proposals in spring 2015.
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The proposed changes will provide what the Department of Business, Innovation and Skills (BIS) described as “robust information”, making it easier for small businesses to compare the role models with the less reputable ones. The Association of Professional Staffing Companies (APSCo) said today it welcomed the proposals.
“This measure will give suppliers the information that they need to negotiate fair contract terms, challenge unfair terms and better plan when to expect payment,” a BIS statement said.
“It will also increase competitive pressure to improvement payment practices and policies in line with peers. And it will encourage businesses to process their payments more efficiently.”
Specifically, the information will outline:
- average payment time
- the proportion of invoices paid beyond terms
- and the proportion of invoices paid within 30 days, over 30 days, over 60 days and over 120 days.
BIS is also proposing that firms report on five additional areas in what it called “narrative form”. They are:
- a description of standard payment terms
- changes to standard periods for payment
- a company’s invoice dispute resolution mechanism
- e-invoicing
- supply-chain finance
- membership of voluntary payment codes.
The new reporting requirement was developed in response to feedback from an earlier consultation, where “a clear majority” favoured increased transparency, BIS said.
In announcing that it welcomed the proposals, recruitment trade body APSCo added a note of caution saying, “although… we would not want the measures to be over burdensome”.
In October, a newly-established advisory board on the pay issue met to discuss the Prompt Payment Code. The BIS statement said it plans to implement concrete proposals in spring 2015.
• Want to comment on this story? The Comment box is at the bottom of the page. Sorry for the glitch but just scroll right down and share your opinions!
