The introduction of the welfare reform bill will mean it is more important than ever for employers and recruiters to ensure candidates have all relevant paper work before hiring them, warns John Hayes, a partner at law firm Irwin Mitchell.

The government last week published the Welfare Reform Bill, which aims to “make work pay” and reduce the cost of the welfare system by £5.5bn over four years, according to David Cameron.

The bill introduces a universal credit for new benefits claimants from October 2013 and will replace six income-related benefits that are currently available.

Hayes told Recruiter:“For recruiters and employers this means they will have to be able to supply a valid work permit for any claim they make for statutory maternity, paternity or sick pay, and it is therefore important that they ensure workers have these documents before hiring them. It is not enough to show that a worker has a valid national insurance number as these do not always prove that a worker has a valid work permit.

“The bill is aimed at getting people off benefits and into work, and employers must be alive to the possibility that this will result in more people with disabilities looking for jobs as they are encouraged to move off disability living allowance and into the workforce. Employers will need to be aware of their duties under The Equality Act 2010 not to discriminate against potential employees. In particular the act limits the use of pre-employment health questionnaires and so employers need to be cautious around asking about an applicant’s health before the offer of a job is made.

“It is important for employers and recruiters, therefore, to consider the implications these changes could have on their business practices to ensure they do not get caught out by any resultant changes in the labour market.”