Drawing the curtain on a year of legislation and red tape

As the year draws to a close, this is recruiter.co.uk’s last full week before we take a break for the festive season.

So we thought we would take the opportunity to highlight some of the hundreds of stories we brought to you over an eventful 2019. In a year dominated by Brexit that ended in what many saw as ‘a Brexit’ election, people might be forgiven for thinking that nothing else happened, but of course that is far from the truth. 

In the first of our reviews, we look at the thorny subject of legislation. While some describe it as red tape that stifles initiative and entrepreneurialism, others see it as much needed regulation.

Front and centre to any review of legislation in 2019 is the IR35 off-payroll rules. Even though rules that came into force in the public sector (although the government has promised a review) are not due to come into effect in the private sector until April 2020, it was this subject that generated much debate, concern and even fury.

In February, the subject of employee status was thrust firmly into the limelight as German parcel delivery firm Hermes struck an agreement with the GMB union offering UK workers ‘self-employed plus’ status, that included holiday and guaranteed wage rates.

Also in February, we reported how HM Revenue & Customs (HMRC) had expressed confidence in the accuracy of its Check Employment Status for Tax (CEST) tool even as it came under increasing scrutiny.

In March, we reported that the government had opened its consultation on extending the off-payroll working rules to the private sector from April 2020.

Also that month, after HMRC lost an IR35 Tribunal case against TV presenter Lorraine Kelly, we brought you the incredulous reaction of leading industry experts.

In May we reported how HMRC was once again force to defend its CEST tool following concerns raised over its accuracy. 

In May, HMRC was again on the back foot, saying it had seen no evidence of blanket IR35 determinations in the public sector. This, despite a survey also in May, revealing that more than half of UK firms are considering taking a blanket approach and placing contractors within the scope of IR35 because they do not have time to assess cases on an individual basis.

Ahead of the expected introduction of the IR35 rules into the private sector, in October RBS joined Lloyds and Barclays in announcing that it would not longer engage contractors unless they moved onto PAYE (pay as you earn).

In November, we revealed HMRC’s continuing battle in the courts when we reported how IT contractor Richard Alcock won his case, proving his status outside of IR35.

Away from IR35 issues, ahead of new legislation coming into effect in April 2019, we reported a warning by a leading solicitor about failure to comply with two important amendments to the 1996 Employment Rights Act.

In July the government announced a consultation on proposals to create a single labour market enforcement body to improve enforcement of employment rights for workers and businesses. Also that month, we reported that the Recruitment & Employment Confederation (REC) had launched a petition to reform the Apprenticeship Levy.

In November, the REC launched its election manifesto ‘Making Great Work Happen’. And at the end of the month, the industry trade body launched a makeover of its brand at its IRP Awards.

An interesting and busy year for regulations and legislation affecting the recruitment industry, and we look forward to updating you on what will take place and come into effect in the new year and beyond.

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