Compliance board aims to clamp down on late payment
12 March 2015
While three of the five core members of the government’s new prompt payment code Compliance board will be from ‘trade representative’ bodies, it remains unclear whether the recruitment industry will be one of the sectors represented.
Thu, 12 Mar 2015
While three of the five core members of the government’s new prompt payment code Compliance board will be from ‘trade representative’ bodies, it remains unclear whether the recruitment industry will be one of the sectors represented.
Following a consultation at the end of last month, the government announced a mandatory 60-day limit in which signatories to the voluntary prompt payment code must comply or face being removed from the group by a new Compliance board.
Organisations and suppliers signing up to the code commit to paying their suppliers within clearly defined terms, while ensuring there is a proper process for dealing with any issues that may arise. The code is administered by the Chartered Institute of Credit Management (CICM) on behalf of the government.
A spokesperson for the Department for Business & Innovation and Skills (BIS) told Recruiter the code’s advisory board is in the process of deciding who will be on the Compliance board but it will consist of at least five core members. “We expect three of the members to be drawn from trade representative bodies and the other two to be Code signatories,” he added.
A spokesperson for the Recruitment & Employment Confederation (REC) told Recruiter the association has not been invited to sit on the Compliance board but is “working closely” with BIS to advise on the issue.
In a statement, REC head of policy Kate Shoesmith said: “The REC has engaged with BIS on prompt payment for some time now, including responding to two government consultations on this issue in the past month to ensure that BIS are aware of the specific issues faced by recruiters.
“We are keen to work with BIS and CICM as they identify suitable candidates for the Compliance board, and to understand the best way for the REC and our members to feed in to developments. This continues to be an important area of business for recruiters.”
The Association of Professional Staffing Companies’ (APSCo) head of external affairs & compliance Samantha Hurley did not say whether the trade body has been invited to sit on the board.
However, she did say APSCo has been working with CICM with a view to integrating its ‘APSCode’ for recruitment process outsourcing providers and managed service providers into the wider prompt payment code. Their code contains clauses that aim to solve issues that small to medium-sized enterprises (SMEs) in particular have in accessing affordable finance when a “pay when paid” clause is in place.
Hurley added in a statement the new Compliance board “must be seen to be enforcing the code rigorously”.
“It is vital that the board has teeth. As such, we support the removal of companies found to be in breach of the code. As, in my view, without a strong reputation, the board will be inadequate,” she said.
The Employment Agency Movement (TEAM) chief executive Liz Longman told Recruiter she did not expect TEAM to be invited to be on the board as it is a network rather than an association but added “we would be happy to help [government] because we welcome anything that can help the SME”.
Following a consultation at the end of last month, the government announced a mandatory 60-day limit in which signatories to the voluntary prompt payment code must comply or face being removed from the group by a new Compliance board.
Organisations and suppliers signing up to the code commit to paying their suppliers within clearly defined terms, while ensuring there is a proper process for dealing with any issues that may arise. The code is administered by the Chartered Institute of Credit Management (CICM) on behalf of the government.
A spokesperson for the Department for Business & Innovation and Skills (BIS) told Recruiter the code’s advisory board is in the process of deciding who will be on the Compliance board but it will consist of at least five core members. “We expect three of the members to be drawn from trade representative bodies and the other two to be Code signatories,” he added.
A spokesperson for the Recruitment & Employment Confederation (REC) told Recruiter the association has not been invited to sit on the Compliance board but is “working closely” with BIS to advise on the issue.
In a statement, REC head of policy Kate Shoesmith said: “The REC has engaged with BIS on prompt payment for some time now, including responding to two government consultations on this issue in the past month to ensure that BIS are aware of the specific issues faced by recruiters.
“We are keen to work with BIS and CICM as they identify suitable candidates for the Compliance board, and to understand the best way for the REC and our members to feed in to developments. This continues to be an important area of business for recruiters.”
The Association of Professional Staffing Companies’ (APSCo) head of external affairs & compliance Samantha Hurley did not say whether the trade body has been invited to sit on the board.
However, she did say APSCo has been working with CICM with a view to integrating its ‘APSCode’ for recruitment process outsourcing providers and managed service providers into the wider prompt payment code. Their code contains clauses that aim to solve issues that small to medium-sized enterprises (SMEs) in particular have in accessing affordable finance when a “pay when paid” clause is in place.
Hurley added in a statement the new Compliance board “must be seen to be enforcing the code rigorously”.
“It is vital that the board has teeth. As such, we support the removal of companies found to be in breach of the code. As, in my view, without a strong reputation, the board will be inadequate,” she said.
The Employment Agency Movement (TEAM) chief executive Liz Longman told Recruiter she did not expect TEAM to be invited to be on the board as it is a network rather than an association but added “we would be happy to help [government] because we welcome anything that can help the SME”.
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