Generated by All in One SEO v5.0.0.1, this is an llms.txt file, used by LLMs to index the site. # Lawspeed The original recruitment law specialists ## Sitemaps - [XML Sitemap](https://www.lawspeed.com/sitemap.xml): Contains all public & indexable URLs for this website. ## Posts - [News](https://www.lawspeed.com/news/) - Read the latest news and updates on recruitment and legislation on our news page. - [Zero Hours Contracts Reform: What the Consultation Means for Agency Workers](https://www.lawspeed.com/zero-hours-contracts-reform-what-the-consultation-means-for-agency-workers/) - Lawspeed and ARC respond to the Government’s Zero Hours Contracts Reform consultation and explain what the reforms mean for agency workers and recruiters. - [FWA inspections – the reality](https://www.lawspeed.com/fwa-inspections-the-reality/) - Since 7th April 2026 the EAS was imported into the Fair Work Agency (FWA), so we now refer to EAS inspections as FWA inspections. However the FWA’s role to inspect employment agencies and employment businesses and investigate breaches of compliance rules remains as it was prior to April. Scope of FWA inspection Although scope of - [Guaranteed hours could guarantee pain rather than comfort](https://www.lawspeed.com/guaranteed-hours-pain-rather-than-comfort/) - As currently proposed the government plans to extend obligations on hirers to offer direct guaranteed hours contracts to agency workers after 12 weeks. ARC argues that the industry must push back on this. Read more here. - [ARC is Hosting an Online Meeting - AI in Recruitment](https://www.lawspeed.com/arc-is-hosting-an-online-meeting-ai-in-recruitment/) - ARC are pleased to announce that the next meeting for members and guests will take place on 25th August 2026 at 2.30pm. For a change, this will be a Microsoft Teams meeting rather than face-to-face. The subject of the meeting will be: “AI for recruitment: What’s real? What’s hype? And what’s worth your time?” Whether or - [Consultation on Guaranteed Hours: A Wake-Up Call for All Hirers and Supply Recruiters](https://www.lawspeed.com/consultation-on-guaranteed-hours/) - The "guaranteed hours" consultation could hit recruitment agencies harder than AWR ever did. Here's what's at stake and what to do before 25 August. - [A Summary of the Consultation on modernising the Agency Work Regulatory Framework](https://www.lawspeed.com/a-summary-of-the-consultation-on-modernising-the-agency-work-regulatory-framework/) - The consultation on modernising the Agency Work Regulatory Framework has now closed. Lawspeed has assisted the Association of Recruitment Consultancies (‘ARC’) in formulating a comprehensive and detailed response, based upon our 3 decades of recruitment industry experience, feedback from ARC members and our recent seminar on this subject. Whilst ARC and Lawspeed welcome the principle - [HMRC - Fraud Warning](https://www.lawspeed.com/hmrc-fraud-warning/) - HMRC has warned of new fraudulent models emerging in the market, claiming to reduce employment costs through ‘tax credits’ offset through acquired third-party businesses. Disguised as payroll providers, intermediaries, umbrella solutions, or back-office providers, they assert to use tax credits to offset employment taxes such as PAYE and National Insurance by operating the payroll thereby, - [Fair Work Agency – important change for recruitment ](https://www.lawspeed.com/fair-work-agency-important-change-for-recruitment/) - The Fair Work Agency is now live, and this is important for recruiters. The Fair Work Agency replaces Employment Agency Standards (EAS), the body responsible for the enforcement of the Conduct Regulations. It also replaces the Gangmasters and Labour Abuse Authority (GLAA) and the Office of the Director of Labour Market Enforcement (DLME). What this - [Agency regulation seminar reveals true feelings](https://www.lawspeed.com/agency-regulation-seminar-reveals-true-feelings/) - Yesterday Lawspeed held a face to face seminar to discuss the current consultation on modernising the agency work regulatory framework. Joined by two policy representatives from the Department of Business and Trade the meeting rapidly developed into a broader discussion. “We had anticipated strong comments, but the depth of feeling in the room was staggering” - [JSL – how to protect against risk](https://www.lawspeed.com/jsl-how-to-protect-against-risk/) - With 6th April just around the corner it’s worth looking at what labour supply businesses should have in place to reduce the risk of HMRC claims under the new tax rules for umbrella company payments. To be clear, under the new joint and several liability rules, liability arises where a business contracts with an umbrella - [Guaranteed Hours and Transfer Fees](https://www.lawspeed.com/guaranteed-hours-and-transfer-fees/) - Transfer fee restrictions – should they stay or should they go? No consideration of this subject can be complete without recognising the government's plan to introduce guaranteed hours for supply workers, included in the Employment Rights Act 2025. Put simply if you supply a contractor to a client and there is a law in place - [4 Recruitment Law Changes Agencies Should Be Paying Attention To: Conduct Regulations Review](https://www.lawspeed.com/4-recruitment-law-changes-conduct-regulations-review/) - Among all the changes the recruitment industry faces in 2026 is a review of the Conduct Regulations. Here are four key questions you need answered... - [Why 2026 is the Year Recruitment Agencies Get Exposed](https://www.lawspeed.com/why-2026-is-the-year-recruitment-agencies-get-exposed/) - Learn how umbrella legislation, TUPE, SSP changes and Employment Rights reforms in 2026 affect recruitment agencies and supply chains. - [Late Notice Cancellation: Are Your Recruitment Contracts Ready?](https://www.lawspeed.com/late-notice-cancellation-are-your-recruitment-contracts-ready/) - New rules under the Employment Rights Bill mean late notice cancellation, without client contract alterations, could see recruitment agencies out of pocket. - [What Recruiters Took Away from Our January Recruitment Seminar](https://www.lawspeed.com/what-recruiters-took-away-from-our-january-recruitment-seminar/) - On 14 January, we brought recruiters together for a focused session on what 2026 is already delivering: guaranteed hours proposals, joint and several liability, Conduct Regulation reform, and the expanding powers of the Fair Work Agency. The feedback? Strong. Direct. And telling. The common theme wasn’t panic. It was clarity.Recruiters left with a sharper understanding - [Perception risk from the new umbrella legislation: why agencies shouldn't assume they're safe](https://www.lawspeed.com/perception-risk-from-the-new-umbrella-legislation-why-agencies-shouldnt-assume-theyre-safe/) - Proposed changes to umbrella legislation, particularly the Joint and Several Liability (JSL) rules under Chapter 11, set for April 2026, are already reshaping behaviour across the recruitment supply chain. But while most conversations focus on PAYE and NICs liability, a quieter, more powerful risk is emerging: perception. Perception influences decisions long before legislation does, and - [TUPE and Chapter 11: the hidden liability nobody’s talking about](https://www.lawspeed.com/tupe-and-chapter-11-the-hidden-liability-nobodys-talking-about/) - At first glance, it may not look like much. But the result of new legislation could be an unexpected and entirely avoidable employment law time bomb. - [Statutory Sick Pay Changes: April 2026](https://www.lawspeed.com/statutory-sick-pay-changes-april-2026/) - SSP Is Changing in 2026, And It’s Going to Hit Agencies Harder Than They Expect Most recruiters think of Statutory Sick Pay (SSP) as background admin — inconvenient, yes, but predictable.April 2026 will challenge that assumption. Under the Employment Rights Bill, SSP rules are changing in ways that will affect every employer, including employment businesses - [Positive steps towards personal data transfers between the UK and EU](https://www.lawspeed.com/personal-data-transfers-uk-eu/) - Brexit has complicated exchanges of personal information between European and domestic businesses. - [Controversy about employer's NIC deduction by umbrellas unjustified](https://www.lawspeed.com/controversy-about-employers-nic/) - In recent weeks, many agencies and umbrella companies have been concerned about reports in the press and circulating through social media that contractors who provide services... - [Mandatory Mediation for small claims](https://www.lawspeed.com/mandatory-mediation-for-small-claims/) - A new requirement for mandatory mediation will apply to County Court claims up to the value of £10K. How this may affect fee recovery in recruitment. - [Employment Disputes: What should you do if you are contacted by ACAS](https://www.lawspeed.com/employment-acas-contact/) - Recruitment businesses may face employment tribunal claims, not just from their own internal employees, but also temporary agency workers. - [Agency Conflicts: Who Holds the Right to Represent and Earn the Fee?](https://www.lawspeed.com/agency-conflicts-who-holds-the-right-to-represent-and-earn-the-fee/) - Two agencies have submitted the same candidate to a client. Does either have a ‘right to represent’, who is entitled to a fee? - [Umbrella Pay Calculator: New Tool](https://www.lawspeed.com/umbrella-pay-calculator-new-tool/) - HMRC has launched an umbrella pay calculator, a new free online tool for workers and businesses to check umbrella take-home pay and deductions. - [IR35 and Outsourcing Services: Some Ideas](https://www.lawspeed.com/ir35-and-outsourcing-services-some-ideas/) - IR35 and Outsourcing Services: Some Ideas - [AWR: Draft Guidance Announced](https://www.lawspeed.com/awr-draft-guidance-announced/) - The government has today (1st April 2011) published the draft guidance, open for comment for a two week period. It is crucial that people recognise that the document is a work in progress and has not yet been finalised. Final guidance is expected to be published early in May 2011, with plenty of time for consideration before - [IR35 stays put after hopes raised of repeal](https://www.lawspeed.com/ir35-stays-put-after-hopes-raised-of-repeal/) - March was a month of highs and lows for contractors and their tax affairs. In the first half of the month the Office of Tax Simplification (OTS) released its review of small business taxation including IR35. The report had been eagerly anticipated by the contracting community and particularly the Professional Contractors Group, which has long - [Pre budget report allows employment umbrellas off](https://www.lawspeed.com/pre-budget-report-allows-employment-umbrellas-off/) - The pre budget report contained the welcome news that the government has decided not to change the tax reliefs on travel expenses, but that is not the end of the matter. Adrian Marlowe, managing director of Lawspeed, said “this news will come as a huge relief not only to umbrella companies, but also to the - [Nipping it in the bud – how to avoid costly Tribunal claims](https://www.lawspeed.com/nipping-it-in-the-bud-how-to-avoid-costly-tribunal-claims/) - The House of Commons Justice Committee has published its review into Court and Tribunal fees, (click here to access review), finding that ACAS pre-claim conciliation is one of the key reasons for the recent decline in Employment Tribunal claims. Since 6th May 2014 before a claim can be lodged with the Employment Tribunal (‘ET’), a - [ARC announces conference on Public Sector IR35 and the Apprenticeship Levy](https://www.lawspeed.com/arc-announces-conference-on-public-sector-ir35-and-the-apprenticeship-levy/) - The conference ‘Panic, Penalty or Progress?’ is being held on 9th February 2017 in London at a time when the recruitment and contracting sector faces of some of the most radical changes to affect the industry in recent years. It will bring together keynote speakers and recruitment law experts to explore the challenges facing hirers - [6 month EU data protection extension](https://www.lawspeed.com/6-month-eu-data-protection-extension-brexit/) - As part of the post Brexit trade deal struck at the eleventh hour between the UK and the EU over the Christmas period, agreement was reached to extend current data protection arrangements - [New case highlights risk to agencies of engaging with sole traders](https://www.lawspeed.com/new-case-highlights-risk-to-agencies-of-engaging-with-sole-traders/) - The healthcare agency K5K Limited is facing a tax bill of more than a quarter of million pounds as a result of engaging agency workers as sole traders. - [Mini Budget - promise to repeal IR35](https://www.lawspeed.com/mini-budget-promise-to-repeal-ir35/) - Some will be pleased at the tax cuts and financial incentives laid out by the Chancellor in his mini budget today 23rd September. Others may worry about the cost to the economy, mirroring the debate points during the Conservative Party leadership battle. Regardless, our Prime Ministers promises in relation to IR35 are now live. - [Are agencies to be liable for contractor tax – IR35?](https://www.lawspeed.com/liable-for-contractor-tax-ir35/) - He’s “not self employed”, therefore he must be “a worker” said the Court of Appeal, in the recent Pimlico Plumber case. In reaching this decision, the hare has been set loose and the HMRC hounds will soon follow. - [BIS announces new post - Director of Labour Market Enforcement](https://www.lawspeed.com/bis-announces-new-post-director-of-labour-market-enforcement/) - The government has recently published the Immigration Bill 2015-16 (which can be accessed here.) The Bill implements a number of the policies which were introduced in the Conservative Party Manifesto, such as measures to tackle illegal working and support the enforcement of labour market rules. Department for Business, Innovation and Skills (BIS) has announced that - [Here's the rub, umbrellagate could cause chaos](https://www.lawspeed.com/heres-the-rub-umbrellagate-could-cause-chaos/) - Following my article on 31st March, my concerns around attempts to whip up support for a group claim against umbrella companies remain. - [There is no place for IR35 scaremongering](https://www.lawspeed.com/ir35-scaremongering/) - Since the government announced in October 2018 that the IR35 public sector rules would be extended to the private sector, there has been a plethora of publications warning against potential issues. - [ARC welcomes consultation on late payment](https://www.lawspeed.com/arc-welcomes-consultation-on-late-payment/) - Referring to the recently announced consultation “Duty to report on Payment Practices”, the Association of Recruitment Consultancies (ARC) welcomed it as the first step towards addressing certain key issues affecting temporary labour supply chains as well as the broader payments picture. “Since the emergence of the RPO and master vendor model (RPO) within the recruitment - [Lawspeed supports ARC effort for post Brexit change](https://www.lawspeed.com/lawspeed-supports-arc-effort-for-post-brexit-change/) - Some of you may have read recently that the Association of Recruitment Consultancies (ARC) has launched a Manifesto on post Brexit change. If not, please see here. Entitled “Post Brexit UK: a better place to do business”, the Manifesto encompasses policies based on research and advice from us at Lawspeed. As legal and compliance specialists - [ARC meets HMRC over IR35 online tool](https://www.lawspeed.com/arc-meets-hmrc-over-ir35-online-tool/) - On 6th January, representatives of the Association of Recruitment Consultancies (ARC) attended a meeting with HMRC officials to discuss the proposed new public sector IR35 rules and to comment on the latest version of HMRC’s planned new online tool. “The meeting, which was attended by a number of large agencies and some public sector representatives, - [IR35 - start planning now](https://www.lawspeed.com/ir35-start-planning-now/) - Today will see the final debate in the House of Lords on the Finance Bill, which contains the new IR35 Off Payroll rules for the private sector. This step is usually a formality, as tradition dictates that the House of Lords will not veto a Finance Bill. However, - [Compulsory pay audits for employers that lose at tribunal](https://www.lawspeed.com/compulsory-pay-audits-for-employers-that-lose-at-tribunal/) - Lose an employment tribunal claim over equal pay, and you will find yourself subject to an equal pay audit, in tough new measures drawn up by the government. Equalities minister Lynne Featherstone said firms would have to look at its employees’ salaries if the tribunal rules that it has discriminated on the grounds of gender. - [Employment Tribunal fees consultation](https://www.lawspeed.com/employment-tribunal-fees-consultation/) - As part of the Government's reforms into employment regulation it has proposed the introduction of fees for claims to the employment tribunal. If you wish to comment on the proposals Agency Zone has condensed the consultation into a short survey (which should only take a minute or two to complete) here. The Government's aim is - [New public sector language requirement](https://www.lawspeed.com/new-public-sector-language-requirement/) - Whilst the recent headlines relating to the public sector have focused on IR35 and potential changes in April 2017, there is also a new requirement from October 2016 to ensure that staff in customer facing roles, including agency workers, speak fluent English (or Welsh). The “fluent English” requirement applies to bodies that carry out functions - [Government Review on Travel and Subsistence](https://www.lawspeed.com/government-review-on-travel-and-subsistence/) - Based on the Office of Tax Simplification's (OTS) report in January, the government has launched a review into the rules underlying the taxation of travel and subsistence expenses. They believe that the current rules do not reflect the changes in working practices and the way that the workforce operates, including the growth of the temporary - [The government should be clear on offshore tax loopholes, says the ARC](https://www.lawspeed.com/the-government-should-be-clear-on-offshore-tax-loopholes-says-the-arc/) - A recent Radio 5 Live expose revealed that no employer national insurance contributions (NIC’s) are being paid for the supply teachers operating via an offshore arrangement, based in Sark.It also suggests that the teachers or educational establishments concerned could be liable for the unpaid NIC’s. This brings a difficult issue sharply into focus, says Adrian - [Exposure of late paying clients touches on 'pay when paid' clauses](https://www.lawspeed.com/exposure-of-late-paying-clients-touches-on-pay-when-paid-clauses/) - From April 2017, a large number of companies may be required to report quarterly on their supplier payment practices. The aim of the draft regulations is to identify those companies who may be clogging up the supply chain and causing cash flow problems for the suppliers they contract with. As it stands, the regulations currently - [Temporary change to sick pay rules and calls for an increase in SSP](https://www.lawspeed.com/temporary-change-to-sick-pay-rules-and-calls-for-an-increase-in-ssp/) - The government has passed regulations which temporarily extend the period in which an individual can self-certify, before they get a doctor’s certificate, for the purposes of claiming statutory sick pay (SSP). - [New topics covered by the Acas helpline](https://www.lawspeed.com/new-topics-covered-by-the-acas-helpline/) - The Acas helpline is being expanded so that its advisers will be able to answer queries previously dealt with by other agencies. From 1st April 2015 the helpline has been able to answer queries on the following topics: the national minimum wage; working for an employment agency; working hours, rest breaks and holidays; agricultural workers - [UK Adequacy decision approved for the UK](https://www.lawspeed.com/uk-adequacy-decision-approved-for-the-uk/) - The EU has today confirmed that an Adequacy Decision for the UK has been approved, this means that organisations based in the EU can transfer personal data to the UK without falling foul of the GDPR, or requiring additional safeguards to be in place - [Lawspeed is awarded ISO-9001 Certification](https://www.lawspeed.com/lawspeed-is-awarded-iso-9001-certification/) - Lawspeed is delighted to announce that it has been awarded ISO 9001:2008 Certification. Managing Director of Lawspeed Adrian Marlowe said “this confirms that our processes and procedures represent best practice, having been formally audited, and evaluated against the internationally recognised standard for quality management. “We have a long standing commitment to maintaining excellence; it is - [HMRC ‘Tax avoidance – don’t get caught out’ campaign](https://www.lawspeed.com/hmrc-tax-avoidance-dont-get-caught-out-campaign/) - HMRC has refreshed its campaign to help contractors, who are self-employed or engaged through an agency or umbrella company, understand their pay arrangements. The intention being that individuals understand if they could be at risk, so they don’t get an unexpected tax bill. HMRC has asked that we share access to these resources with our readers. - [Meet the trade organisation that fights for recruiters in London next week](https://www.lawspeed.com/meet-the-trade-organisation-that-fights-for-recruiters-in-london-next-week/) - ARC chairman, Adrian Marlowe, will be at the Recruitment Agency Expo at Olympia, London on Tuesday 26 February and is looking forward to meeting business owners from across the recruitment industry to discuss the big issues of the moment. Adrian will be at the ARC stand – number 150 – from 11am next Tuesday and - [The Debate Continues - Harpur Trust v Brazel](https://www.lawspeed.com/thedebatecontinues-harpurtrustvbrazel/) - The debate regarding holiday pay continues as a consultation is launched with regard to the calculation of holiday entitlement for workers with irregular hours and pay. - [HMRC and Lawspeed recommendations on working with umbrella companies](https://www.lawspeed.com/working-with-umbrella-companies/) - Umbrella companies often play a key part in recruitment supply chains. Working with a non-compliant umbrella, as highlighted by the recent government call for evidence concerning the umbrella company market can expose a recruitment business to significant risk. - [ARC think-tank on employment tribunal reform provides crucial input into government consultation](https://www.lawspeed.com/arc-think-tank-on-employment-tribunal-reform-provides-crucial-input-into-government-consultation/) - Hirers and senior recruitment professionals unanimously rejected the government’s proposal to impose a financial penalty on employers for breach of employment laws, at a think-tank meeting held by the Association of Recruitment Consultancies (ARC) to provide input into the government’s consultation on employment tribunal reform. ARC brought together its members and senior HR practitioners to put - [Important recruitment law dates for 2012](https://www.lawspeed.com/important-recruitment-law-dates-for-2012/) - 2011 was an eventful year to say the least, what with the implementation of the AWR and ongoing efforts to limit their impact. The Coalition Government decided that IR35 would not be abolished, much to the disappointment of optimistic freelancers and the Red Tape Challenge opened up a dialogue between business and Government, the outcomes - [New Lawspeed seminar on threats and opportunities within Contractor models](https://www.lawspeed.com/new-lawspeed-seminar-on-threats-and-opportunities-within-contractor-models/) - The forthcoming ‘Knowledge is Power’ seminar called ‘Critical issues for the recruitment industry - Contractors’, is aimed at business owners, operations directors, FD's and HR. It explores the threats and opportunities within contractor models, and includes a bespoke Q&A element for delegates to ask focussed questions during and after each presentation. The seminar kicks off - [Data protection in the EU 2021 onwards – deal or no deal](https://www.lawspeed.com/data-transfer-impacted-by-brexit-split/) - With Brexit fast approaching, businesses are being urged to prepare. Regardless of whether there is no deal with the EU, preparation should include considering the steps needed to address terms related to the transfer of personal data - [Modern Slavery Act 2015 – anachronistic or more topical than ever?](https://www.lawspeed.com/modern-slavery-act-2015-anachronistic-or-more-topical-than-ever/) - We have all heard horror stories about modern slavery and human trafficking from all corners of the world. For those who haven’t seen it, I highly recommend Lukas Moodysson’s critically acclaimed film ‘Lilja 4-ever’. This is a harrowing tale of the downward spiral of Lilja, a young girl from Estonia who, in that case is - [Agencies: your obligations regarding immigrant workers](https://www.lawspeed.com/agencies-your-obligations-regarding-immigrant-workers/) - The Department for Education has embarked upon a campaign to remind agencies providing staff to schools of their obligations to check the right to work in the UK under the Immigration, Asylum and Nationality Act 2006 (IANA). So what are the rules? Under the IANA it is illegal to employ someone who does not have - [Supply teachers and support staff under the Agency Workers Regulations 2010](https://www.lawspeed.com/supply-teachers-and-support-staff-under-the-agency-workers-regulations-2010/) - The Department for Education has published final guidance for the application of the Agency Workers Regulations 2010 (“AWR”) on supply teachers and other teaching and support staff. It is available by clicking here The revised guidance provides some assistance in the question of ‘who is the hirer’ although it still leaves areas of uncertainty which the - [Government has announced a new campaign on workplace pensions](https://www.lawspeed.com/government-has-announced-a-new-campaign-on-workplace-pensions/) - The government has launched a campaign which aims to change the country's perception of pensions in the workplace and to remind employers of their workplace pension’s duties. More information about the campaign is available here. Since the introduction of the automatic enrolment into workplace pensions in 2012, every employer with at least one employee is - [Employment Agency Standards: New Guidance](https://www.lawspeed.com/employment-agency-standards-new-guidance/) - Employment Agency Standards (EAS) has issued new guidance for agency workers seeking to make complaints about a recruitment business. - [IR35 made easy – a must read for hirers and agencies](https://www.lawspeed.com/ir35-made-easy/) - There has been so much noise around IR35 tax that it has always been hard to see the wood from the trees. - [Unfair dismissal rights from day one: impact for recruitment](https://www.lawspeed.com/unfair-dismissal-rights-from-day-one-impact-for-recruitment/) - A key proposal in the recently announced Employment Rights Bill is to grant unfair dismissal rights from day one of employment. - [King’s Speech 2024: Employment law proposals and the impact on recruitment](https://www.lawspeed.com/kings-speech-2024-employment-law-proposals-and-the-impact-on-recruitment/) - The King's Speech set out laws that the new government intends to bring through parliament. How the new Employment Rights Bill may impact recruitment. - [Covid19 - Who is responsible for the health and safety of PAYE temps?](https://www.lawspeed.com/covid19-who-is-responsible-for-the-health-and-safety-of-paye-temps/) - Whether workers have been working throughout the pandemic or are now beginning to return to the workplace, maintaining health and safety is of crucial importance. Government has issued specific guidance that employers should follow to ensure safety in the workplace, but who is responsible for ensuring the health and safety of a PAYE temp? - [How will the new Job Support Scheme affect your staffing decisions?](https://www.lawspeed.com/how-will-the-new-job-support-scheme-affect-your-staffing-decisions/) - Whether workers have been working throughout the pandemic or are now beginning to return to the workplace, maintaining health and safety is of crucial importance. Government has issued specific guidance that employers should follow to ensure safety in the workplace, but who is responsible for ensuring the health and safety of a PAYE temp? - [Embracing the right to claim unfair dismissal from day one](https://www.lawspeed.com/embracing-unfair-dismissal-claims-from-day-one/) - The proposal for unfair dismissal claims to be a day 1 right has worried many businesses. However, this could be a positive change for the recruitment sector. - [Employment rights bill: key points for recruitment](https://www.lawspeed.com/employment-rights-bill-key-points-for-recruitment/) - The long-awaited Employment Rights Bill was introduced to parliament today. We have identified 3 key points of interest to recruitment businesses. - [The GLA moving towards becoming a labour market wide inspectorate with extra police powers by 1st October 2016](https://www.lawspeed.com/the-gla-moving-towards-becoming-a-labour-market-wide-inspectorate-with-extra-police-powers-by-1st-october-2016/) - Following a government consultation in 2015, the Immigration Bill 2015 received Royal Assent on 12th May 2016 and has now become the Immigration Act 2016 (“the Act”). The Act criminalises those who do not have the right to work in the UK but intend to secure employment, and contains measures to prevent illegal migrants in - [Terminating supply contracts - new client insolvency legislation](https://www.lawspeed.com/terminating-supply-contracts-new-client-insolvency-legislation/) - Whether workers have been working throughout the pandemic or are now beginning to return to the workplace, maintaining health and safety is of crucial importance. Government has issued specific guidance that employers should follow to ensure safety in the workplace, but who is responsible for ensuring the health and safety of a PAYE temp? - [GDPR – Transfers of data to the United States](https://www.lawspeed.com/gdpr-transfers-of-data-to-the-united-states/) - In July the European Court of Justice (ECJ) ruled that the US privacy shield, which had previously allowed data transfers of personal data from the EU to the - [Lee v Ashers Baking Company 'The Gay Cake Case': whose rights prevail?](https://www.lawspeed.com/lee-v-ashers-baking-company-the-gay-cake-case-whose-rights-prevail/) - The decision in Lee v Ashers Naking Co Ltd and others, which has become known as the “gay cake case”, follows a string of cases examining the clash between the right to hold religious beliefs and protection against sexual orientation discrimination. In this particular case a customer placed an order for a cake requesting that - [Right to work: Are recruitment agencies liable for contractors without legal status?](https://www.lawspeed.com/right-to-work-are-recruitment-agencies-liable-for-contractors-without-legal-status/) - New Right to Work laws could mean £60k fines for illegal workers. Find out what recruitment agencies need to do to stay compliant. - [Should the Court look behind the contracts to determine employment status?](https://www.lawspeed.com/should-the-court-look-behind-the-contracts-to-determine-employment-status/) - Autoclenz Limited v Belcher (2011) on the face of it conflicts with the ruling in James v Greenwich (2008) in that in Autoclenz the Court ruled that it is important to look behind the contracts at the actual circumstances, whereas the Court in James ruled that you should not look behind the contracts at the - [Sexual Harassment – new Employer Obligations](https://www.lawspeed.com/sexual-harassment-new-employer-obligations/) - All employers must take reasonable steps to prevent sexual harassment in the workplace. How can you ensure compliance with these new requirements? - [Accelerated Wages at a Cost: Implications for Agencies](https://www.lawspeed.com/accelerated-wages-at-a-cost-implications-for-agencies/) - Recent news reports agency workers and gig economy participants are being charged fees to receive their pay quickly. However, is this practice legal? - [Knowledge is Power seminar - London: 27th November 2013](https://www.lawspeed.com/knowledge-is-power-seminar-london-27th-november-2013/) - Critical issues for the recruitment industry Lawspeed – the recruitment & employment law experts – present a cutting edge seminar to keep you up-to-date with all the important topics. Subjects covered include: maximising compliance and protecting fees with today’s technologies, changes to regulatory structures, contractor tax update, zero hours contracts and restrictive covenants in the - [Deadline to furlough fast approaching](https://www.lawspeed.com/deadline-to-furlough-fast-approaching/) - The corona virus job retention scheme will be closed to new entrants with effect from 30th June 2020. From 1st July 2020 the scheme can only be used for - [Coming to terms: Why recruiters may lose out on introduction fees](https://www.lawspeed.com/coming-to-terms-why-recruiters-may-lose-out-on-introduction-fees/) - Candidates are introduced, engaged and fees are paid. But disputes can arise. What are the common reasons fees are lost, how can you protect your business? - [2024 Autumn Budget](https://www.lawspeed.com/2024-autumn-budget/) - The Association of Recruitment Consultancies, part of the Lawspeed Group services, has made comments relating to the Autumn 2024 budget announced this week. - [Zero hours threaten transfer fees](https://www.lawspeed.com/zero-hours-threaten-transfer-fees/) - The current consultation on the application of zero hours rules to agency workers includes a specific question on transfer fees. - [Zero hours rules for agency workers: Consultation launched](https://www.lawspeed.com/zero-hours-rules-for-agency-workers-consultation-launched/) - The Government has just launched a new consultation on the application of proposed new zero hours rules in the Employment Rights Bill to agency workers. - [NICs and Wage Changes](https://www.lawspeed.com/nics-and-wage-changes/) - Increases to minimum wage and National Insurance directly impact the costs of supplying agency workers. What should businesses do to prepare for these changes? - [Common mistakes when working with umbrellas](https://www.lawspeed.com/common-mistakes-when-working-with-umbrellas/) - Engaging with umbrellas can present some risk. We look at some of the common mistakes we come across that may expose a recruitment business to risks. - [SPA transparency wins support from agencies](https://www.lawspeed.com/spa-transparency-wins-support-from-agencies/) - As the extension of the IR35 public sector rules slowly unfolds, one option being considered is to switch contractors to engagement through umbrella companies where the new rules will apply. - [Breaking News: Agencies liable for PAYE tax. Here’s what you can do.](https://www.lawspeed.com/breaking-news-agencies-liable-for-paye-tax-heres-what-you-can-do/) - The umbrella liability law: what’s changing? The government has released draft legislation that will introduce joint and several (J&S) liability for PAYE tax and, soon, NICs where a qualifying umbrella company is involved in the recruitment supply chain. From 6th April 2026, if your agency works with an umbrella company that fails to account for - [Recruiters: Stop Worrying About Sending Your Terms of Business](https://www.lawspeed.com/recruiters-stop-worrying-about-sending-your-terms-of-business/) - The 30-second fix to help you stop sweating about sending your clients your terms of business and protect your recruitment fees. - [Is joint liability the future of umbrella compliance?](https://www.lawspeed.com/joint-liability-for-recruiters-and-umbrellas/) - Why the proposed scheme could be a disaster HMRC’s latest proposal on umbrella companies still misses the mark As pressure mounts around tax avoidance and payroll compliance in the umbrella company sector, HMRC has proposed a new plan that could have wide-reaching consequences for recruitment agencies. While the initial idea of making agencies run PAYE - [Latest news: Umbrella Company Reform and the Employment Rights Bill](https://www.lawspeed.com/latest-news-umbrella-company-reform-and-the-employment-rights-bill/) - Agencies may no longer be required to run PAYE, but they could still be on the hook for unpaid tax. the Could agencies and umbrella companies share liability? - [Key Information Documents (KID):4 Costly mistakes recruitment agencies should avoid in 2025](https://www.lawspeed.com/key-information-documents-kid4-costly-mistakes-recruitment-agencies-should-avoid-in-2025/) - 5 years on and recruitment agencies are still getting Key Information Documents (KID) wrong. Here’s what you need to know to get it right in 2025. - [750,000 Umbrella Workers Set to Lose Employment Rights](https://www.lawspeed.com/three-quarters-of-a-million-umbrella-workers-set-to-lose-employment-rights/) - Recent developments could see over 750,000 UK umbrella workers are at serious risk of losing their employment rights by April 2026. - [Umbrella regulation – a step closer](https://www.lawspeed.com/umbrella-regulation-a-step-closer/) - September 14, 2026 The government has now published its plans for applying proposed zero hours rules to agency workers. - [Zero hours rules to apply to agency workers - but a long way to go yet](https://www.lawspeed.com/zero-hour-contract-announcement/) - The government has now published its plans for applying proposed zero hours rules to agency workers. This includes new requirements, guaranteed hours and more - [Small Businesses Get Bigger -  IR35](https://www.lawspeed.com/small-businesses-get-bigger-ir35/) - Starting in April, small businesses are growing, and some previously medium-sized ones may no longer qualify as such for IR35 purposes. - [How wrong can it get? IR35 and worker status - Appiah](https://www.lawspeed.com/how-wrong-can-it-get-ir35-and-worker-status-appiah/) - In a recent case a first tier Employment Tribunal decided that a social worker was a worker and that the party responsible for paying the worker was the employment business supplying her to a client. The decision is surprising because the supply contract was with the worker’s personal service company (PSC), and has given rise to the claim in some quarters that it is the harbinger of employment rights for contractors working inside IR35. - [Conduct Regulations Compliance](https://www.lawspeed.com/conduct-regulations-faq/) - They are the Conduct of Employment Agencies and Employment Business Regulations 2003, it is a bit of a mouthful so often shortened to the conduct regulations. They can also be known as the agency conduct regulations or the EAA regulations, this being because they flow from the employment agencies act of 1973. - [Who is liable for a breach of the AWR?](https://www.lawspeed.com/who-is-liable-for-a-breach-of-the-awr/) - Claims under the Agency Workers Regulations 2010 (AWR) can be made against any party in the supply chain. Who would be liable for a claim under the AWR? - [Recruitment fee disputes: minimise risk of lost fees](https://www.lawspeed.com/recruitment-fee-disputes-how-to-reduce-your-risk-of-lost-fees/) - Fee disputes are a regrettable fact of life in recruitment. Here are our top 5 tips to reduce the risk of recruitment fee disputes. - [How much notice period is an employee entitled to?](https://www.lawspeed.com/how-much-notice-period-is-an-employee-entitled-to/) - Notice period should be set out in a contract of employment. Businesses can be surprised to discover that they may be obliged to pay more. - [Employment Status: Employee or Worker](https://www.lawspeed.com/employment-status-employee-or-worker/) - Labour’s plan for employment law, includes an intention to look at employment status and move towards a single status of worker. - [Election 2024: How Labour's plan for employment law affects the recruitment industry](https://www.lawspeed.com/labours-plan-to-impact-recruitment/) - As the 2024 election approaches and with Labour currently ahead in the polls, it's important to consider how their proposals for worker rights could impact recruitment. - [Umbrella Regulation Update](https://www.lawspeed.com/umbrella-update/) - Regulation of the umbrella market was the subject of a joint consultation by HMRC, HM Treasury and DBT in the summer of 2023. The consultation closed back in August 2023, but with a general election looming, what is the current state of play? - [Protecting your business when working with Umbrellas](https://www.lawspeed.com/protecting-your-business-when-working-with-umbrellas/) - HMRC has recently updated guidelines for umbrellas, and individuals who work through an umbrella. There has also apparently been a surge in umbrella accreditation services. Does accreditation actually address the issues identified in the government’s consultation on how to regulate the umbrella company market which was announced earlier this year? - [Mini Umbrella Schemes - fraudulent, court rules](https://www.lawspeed.com/mini-umbrella-schemes-fraudulent-court-rules/) - The Tax Tribunal has confirmed that mini umbrella schemes are fraudulent. - [Are you aware of the risks under whistleblowing legislation?](https://www.lawspeed.com/are-you-aware-of-the-risks-under-whistleblowing-legislation/) - Agencies that are terminating an agency worker’s assignment as a result of an issue in the workplace should consider whether whistleblowing legislation applies in order to minimise the risk of costly claims. Essentially, “workers” (which is a very wide definition) have certain protections under whistleblowing legislation if they make a “protected disclosure” – e.g. expose - [EAS complaints on the increase – are you at risk?](https://www.lawspeed.com/eas-complaints-on-the-increase-are-you-at-risk/) - Employment Agency Standards (EAS) is responsible for the enforcement of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (‘Conduct Regs’), and has reported an increase in complaints. Are you compliant with key elements of the regulations, and how would your business fair if inspected? The most common issues where agencies run into problems - [Seminar on Regulation of the Umbrella Company Market](https://www.lawspeed.com/seminar-on-regulation-of-the-umbrella-company-market/) - At the beginning of June, the government published the long-awaited consultation on the regulation of the umbrella industry. However, there is concern that the proposals target employment businesses and hirers rather than umbrella companies, which could negatively affect a vibrant recruitment and contractor supply industry. - [Reduce your risk with due diligence](https://www.lawspeed.com/due-diligence-and-umbrellas/) - The government’s consultation on the regulation of the umbrella company market is a current hot topic for supply businesses. The proposals put forward are aimed at regulation of the industry, to address employment rights abuses and tax non-compliance. - [Establishing Right to Work Checks – New Code from January 2024](https://www.lawspeed.com/establishing-right-to-work-checks-new-code-from-january-2024/) - The Home office has published a new code of practice applicable to employers establishing that an employee has a right to work in the UK. The new code is applicable from 22nd January 2024, and if steps within it are followed should result in an employer having a defence against liability should the employee not have a right to work. - [Rolled up holiday pay is set for a comeback](https://www.lawspeed.com/rolled-up-holiday-pay-is-set-for-a-comeback/) - Recent government proposals indicate an intention to make changes to the holiday pay regime including bringing back rolled up holiday pay. Rolled up holiday pay is the name given to the arrangement whereby an individual receives an element of holiday pay with every payment they receive for work performed, rather than receiving payment at the point holiday is taken. This is common in short term, ad hoc and casual arrangements, including where individuals work through recruitment companies and umbrellas. - [Replacing Workers on Industrial Action](https://www.lawspeed.com/replacing-workers-on-industrial-action/) - The government has published a consultation on once again removing the restriction in R.7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (‘Conduct Regs’) on employment businesses supplying candidates to cover those taking part in official strike action or other official industrial action. - [Umbrella Company Problems](https://www.lawspeed.com/umbrella-company-problems/) - JSA enters voluntary arrangement owing £11.3 million The well known umbrella company JSA Services Limited entered into voluntary arrangements with creditors in December 2009. Among its total debts of £11.3million was £10.6million owed to HMRC, including for PAYE and National Insurance contributions. Debts of this size usually only arise if there are fundamental flaws in - [Are you prepared for an Employment Agency Standards (EAS) inspection?](https://www.lawspeed.com/are-you-prepared-for-an-employment-agency-standards-eas-inspection/) - EAS enforces the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (‘the Regulations’) and is conducting an increased level of inspection, both on a routine basis and in respect of complaints, and routine checks. What does an inspection involve and if inspected, would your business comply with key elements of the Regulations? Businesses can - [Employment Status – why it matters](https://www.lawspeed.com/employment-status-why-it-matters/) - There have been a few cases in the public eye recently relating to employment status such as the Amazon drivers case which we discussed in April (see article here). This indicates that the ground on which status is based could be shifting, so why is that important for recruiters? - [Government body finds IR35 too taxing](https://www.lawspeed.com/government-body-finds-ir35-too-taxing/) - Last week it was reported that UK Research and Innovation, a public sector body, was required to pay £36m to HMRC for unpaid levels of IR35 tax. This is reported to have followed an investigation into 285 contractors engaged by UKRI as monitoring and assessment officers, and it follows a string of reports of government bodies being caught for not addressing IR35 correctly. - [“Prepare now” recruiters told at major IR35 conference](https://www.lawspeed.com/ir35-prepare-now/) - Various high profile businesses offer IR35 tax and expenses insurance as a way of offsetting risk against an IR35 claim. Historically the party able to take up the insurance was the contractor who would be liable but since the onset of the public sector rules, the liable party is the fee payer, namely the hirer or agency (if one is involved) that pays the contractor company. - [Umbrella regulation draws a step nearer](https://www.lawspeed.com/umbrella-regulation-draws-a-step-nearer/) - Victoria Atkins, Financial Secretary to the Treasury, issued a written ministerial statement yesterday announcing a consultation on policy options to regulate umbrella companies and to tackle non-compliance in the market. This is amongst other objectives to ‘simplify’ and ‘modernise’ the tax system, with the intention to make the system fairer for taxpayers, work better for traders and challenge non-compliance. - [Agency Worker Regulations – here to stay](https://www.lawspeed.com/agency-worker-regulations/) - The Agency Worker Regulations (AWR) were introduced over ten years ago, and even now are regularly overlooked. There may have been indications that these regulations may not last, but a government announcement last Friday shows that AWR is here to stay, with no proposals to change. When first introduced there were dramatic claims that these regulations threatened - [Employment Law changes 2024 – are you up to speed?](https://www.lawspeed.com/employment-law-changes-2024-are-you-up-to-speed/) - This year sees a raft of changes to employment law that businesses need to be aware of. Significant changes have been made to holiday pay, flexible working, carers' rights, paternity, and pregnancy and maternity rights. The new rules on holiday pay have been well publicised. These consist of pay calculated at a fixed rate of - [Agencies to be liable for umbrella failings under government proposals](https://www.lawspeed.com/agencies-to-be-liable-for-umbrella-failings-under-government-proposals/) - The government has published the long awaited consultation on regulation of the umbrella industry. Entitled “Tackling non compliance in the umbrella company market” the consultation seeks to address both employment rights abuses and tax non compliance by umbrella companies. - [Consultation on how agencies work with umbrella companies](https://www.lawspeed.com/consultation-on-how-agencies-work-with-umbrella-companies/) - The name of the current consultation ‘Tackling non-compliance in the umbrella company market’ suggests that the subject is the regulation of umbrella companies. However, the proposals, if adopted, will directly impact the operations of recruitment supply businesses. Do recruitment businesses want more rules and risks? - [Rules allowing agencies to replace striking workers ruled unlawful](https://www.lawspeed.com/rules-allowing-agencies-to-replace-striking-workers-ruled-unlawful/) - The High Court has today ruled that the 2022 repeal of R.7 of the Conduct Regulations, which banned the supply of temporary workers to replace those on official strike action, was unlawful. - [Transfer of tax debts and mandatory due diligence. Is there a better way?](https://www.lawspeed.com/transfer-of-tax-debts-and-mandatory-due-diligence-is-there-a-better-way/) - There is an ongoing consultation on the regulation of the umbrella industry. Proposals within this could have a significant effect on an employment business's operations and potential liabilities. These include proposals for mandatory due diligence, the transfer of umbrella tax debts and even employment businesses operating as the employer of umbrella workers for tax purposes. - [What is IR35?](https://www.lawspeed.com/ir35-overview/) - IR35 is the common name given to tax legislation which affects how individuals working through PSCs or other intermediaries are taxed. The actual legislation can be found in Chapters 8 & 10 of Part 2 of the Income Tax earnings and pensions act 2003. - [Company Opt-Out: What does it mean? Why it’s a win-win](https://www.lawspeed.com/companyoptout/) - 'Opt out' refers to a pivotal choice made by both a limited company and the individual working through it when working with a contractor supply agency. In effect it’s an agreement that regulations designed to protect agency workers don’t apply to the contracts put in place. The regulations are the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (the “Conduct Regulations”), which impose various obligations on supply agencies to ensure that agency workers are not exploited. - [The low down on Employment Agency Standards (EAS) inspections of recruitment businesses](https://www.lawspeed.com/eas-inspections-of-recruitment/) - The Employment Agency Standards (EAS) is a section of the Department of Business and Trade. It’s responsible for enforcing compliance with the Conduct of Employment Agencies and Employment Business Regulations 2003 (Conduct Regulations) and has extensive powers to ensure recruitment businesses operate within the law. It is currently increasing its inspections of recruitment businesses, here are some points to note. - [Options when a client can’t or won’t pay?](https://www.lawspeed.com/options-when-a-client-cant-or-wont-pay/) - Company insolvencies are reported by the Insolvency Service to be at their highest levels since the 2009 financial crisis. Recruitment businesses may be worried about the risk of hirer insolvency or financial difficulty. Where does a business stand if a hirer client is still trading but can’t or won’t pay, and are there steps that can be taken to improve the prospect of recovery? - [Roll up, roll up - Holiday pay rules set to change](https://www.lawspeed.com/roll-up-roll-up-holiday-pay-rules-set-to-change/) - Following two government consultations on holiday pay in 2023 draft legislation has now been published to change the rules. The current law has been in place since the advent of the Working Time Regulations in 1998 but due to Brexit and the Supreme Court decision in Harpur v Brazel, which caused considerable confusion in practical terms, there has been a need for clarification particularly on the issue for temporary workers including agency workers. - [Seminar on Holiday Pay and EAS Compliance Inspections](https://www.lawspeed.com/seminar-on-holiday-pay-and-eas-compliance-inspections/) - After years of controversy, rolled-up holiday pay is to be allowed for agency workers and others from April 2024, but subject to complex rules on application and calculation. This means that agencies who supply temporary workers will need to get to grips with how the new rules operate. At the same time, more and more agencies are being - [Draft bill threatens worker status and agency supply](https://www.lawspeed.com/draft-bill-threatens-worker-status-and-agency-supply/) - One of the key advantages of hiring an agency worker is the very low risk of a claim for employment rights by the worker against the hirer. This position has been challenged many times over the years, but remains legally secure as things stand. Now however there is a new challenge, the Status of Workers Bill, which has recently been proposed by the House of Lords to create a single status for workers as employees, in effect demolishing worker status altogether. - [Rolled up Holiday Pay – Good News for recruiters](https://www.lawspeed.com/rolled-up-holiday-pay-2/) - For leave years starting from the 1st of April 2024, businesses are now legally permitted to provide holiday pay on a ‘rolled up’ basis and should calculate leave and pay entitlement at a fixed rate. BUT ONLY FOR irregular hours or part year workers. - [Minimum wage changes April 2024 – are you ready?](https://www.lawspeed.com/minimum-wage-changes-from-april-2024/) - For 1st April 2024 the national living wage rate has increased from £10.42 to £11.44 per hour. However, this is not the only change taking place . - [Employment policy update for April 2024](https://www.lawspeed.com/changes-to-the-rules-around-paternity-leave/) - April 2024 sees changes to the rules around paternity leave, flexible working and time off for carers, all of which demand some attention. - [Redundancy and pregnancy or other family friendly rights](https://www.lawspeed.com/changes-to-redundancy-rules/) - There are some new rules around redundancy where the employee is pregnant, on maternity leave, adoption leave, or shared parental leave. - [Changes to non-compete clauses](https://www.lawspeed.com/changes-to-non-compete-clauses/) - Non-compete clauses are those which prevents an individual from setting up, or having an interest in a competing business, or going to work for someone who is a competing business. - [Make PAYE as pain-free as possible](https://www.lawspeed.com/make-paye-as-pain-free-as-possible/) - Supplying temporary workers has always been a minefield in terms of compliance, and since the IR35 rules changed in April 2021 this has become even more complex. Two years on, and businesses are still grappling with whether to take the risk of IR35 or avoid IR35 altogether by engaging the agency workers directly or via an umbrella company. - [Amazon drivers claim](https://www.lawspeed.com/amazon-drivers-claim/) - In May 2008 we reported on the Court of Appeal case of James v Greenwich. This case set the tone thereafter as the Appeal Court clarified in summary that agency workers will not normally be regarded as implied employees of the hirer unless they work in a way not reflected in the worker’s agreement with the agency. Both hirers and agencies have relied on this case ever since. - [Lineker IR35 case unscrambled](https://www.lawspeed.com/lineker-ir35-case-unscrambled/) - The First-tier Tax Tribunal decided that Mr. Lineker had a direct contract with the BBC and BT Sport and therefore the IR35 rules do not apply. On the face of it this seems a bizarre outcome since Mr. Lineker had, and operated through, a partnership with his former wife. Any student of IR35 will know that IR35 is the common name used to refer to the ‘Intermediaries legislation’ - addressing tax avoidance through the use of intermediaries and that a partnership is stated to be an intermediary. Further where there is a contract between the client and an intermediary for the personal services of the individual, Mr. Lineker in this case, the IR35 rules apply so requiring a hypothetical employment status assessment of the individual to client relationship. So how did the tribunal reach its conclusion? - [Working with Umbrella Companies – understanding the risks and reaping the rewards](https://www.lawspeed.com/working-with-umbrellas-risks-and-rewards/) - Umbrella companies regularly play an integral role within the recruitment industry supply chains, offering businesses payroll solutions. These companies do not always receive the best press, with links to non-compliance and scandals over tax avoidance. However, rather than allowing uncertainty to affect the way your business uses these third-party companies, we offer you the chance to understand the risks whilst reaping the rewards. - [April Minimum wage changes – do you need to update your KID?](https://www.lawspeed.com/minimum-wage-changes-update-your-kid/) - April 2023 will see the National Living Wage and National Minimum Wage increasing, so if you are supplying workers and have issued a Key Information Document, you should be asking whether the pay rate referred to in it remains correct. - [ARC comments on the Chancellor’s budget](https://www.lawspeed.com/arc-comments-on-the-chancellors-budget/) - The Association of Recruitment Consultancies (ARC) has commented on the budget as follows: Commenting on the latest budget statement, Adrian Marlowe, Chairman of the Association, said: “The Chancellor’s statement on 16th March is largely to be welcomed. In particular we welcome all the measures to bring more people into work, whether younger or older, not only given the scale of the labour shortages in the UK but also for our collective social well being. This should benefit the employment sector as well as those currently out of work. - [Get ahead of the curve – insight for success](https://www.lawspeed.com/get-ahead-insight-to-success/) - For many years recruitment businesses have supplied company contractors to their clients and in many cases have obtained opt outs from them. This has meant that both the agency regulations and tax obligations on supplying businesses were largely irrelevant. Inevitably understanding those regulations and others, such as the Agency Worker Regulations, has not been seen as important. - [AWR compliance and the rising cost of living](https://www.lawspeed.com/awr-compliance-and-the-rising-cost-of-living/) - Many employers, including recruitment businesses, are taking steps to help and support staff with the rising cost of living, whether temporary help (e.g. a one off payment) or permanent help (e.g. a salary increase). However, should these kinds of enhancement be provided to agency workers and contractors? - [Queen Elizabeth II's funeral - bank holiday arrangements](https://www.lawspeed.com/queens-funeral-bank-holiday-arrangements/) - The funeral of Her Majesty Queen Elizabeth the Second will take place on Monday 19th September 2022, and the day has been declared a bank holiday. The Government have stated that businesses are not obliged to close. However, it is expected that, unless there is a need to remain open, most will do so as a mark of respect and to provide staff the opportunity to pay their respects... - [PAYE Temp Supply – nothing to fear](https://www.lawspeed.com/paye-temp-supply-nothing-to-fear/) - As a supply agency, have you switched, or are you considering switching, from supplying personal service company (PSC) contractors because of IR35 or client requirements? If so, come to our seminar on 6th October 2022 to gain insight. Switch to your own payroll (PAYE) or work with umbrella companies (also offering PAYE payroll), or adopt both. Either way there are regulations and worker rights to be considered - [With more industrial action looming – ban on supply of temps to replace striking workers repealed](https://www.lawspeed.com/with-more-industrial-action-looming-ban-on-supply-of-temps-to-replace-striking-workers-repealed/) - With industrial action hitting the headlines once more, whether it be rail workers, postal workers, or, potentially nurses, the repeal of Regulation 7 of the Conduct of Employment Agencies and Employment Businesses regulations 2003 (‘Conduct Regs’), means that agencies can now supply agency workers to replace workers involved in industrial action. Does this now mean a free for all for employment businesses, or are there other factors which need consideration? - [Agency worker supply – a seminar on the rules and the risks](https://www.lawspeed.com/https-lawspeed-com-events-seminar-agency-worker-supply-6th-october-2022/) - With so many questions currently arising over holidays and holiday pay, agency worker rights, employment/worker status and recruitment process, it is a good time for a refresher. This seminar on 6th October 2022 in London will focus on the key rules that apply to the supply of agency workers and how to navigate them to achieve the best outcomes. - [Why contractors as well as agencies need to be concerned about the MSC Rules?](https://www.lawspeed.com/why-contractors-as-well-as-agencies-need-to-be-concerned-about-the-msc-rules/) - A recent decision by the tax tribunal serves as a timely reminder why both contractors and agencies need to be aware and cautious of potential liability under the Managed Service Company rules, specifically that being complicit in the tax arrangements is not a requirement for debts to be transferred to other parties involved in the supply chain. - [Lawspeed seminar – additional speakers announced](https://www.lawspeed.com/lawspeed-seminar-additional-speakers-announced/) - Lawspeed is delighted to announce that Steve Keeler, Head of Enforcement and Sanctions, at the Employment Agency Standards Inspectorate of the Department of BEIS and Liam Osborne, HMRC Status Technical Team Advisor; Individuals Policy Directorate, will be speaking at it’s all encompassing round up of the tax and regulatory issues that hirers and supply agencies - [Can you afford to miss our Seminar about tax liability?](https://www.lawspeed.com/can-you-afford-to-miss-our-seminar-about-tax-liability/) - Since the introduction of IR35 in 2000 the accountancy/umbrella/contractor support sector has grown at breakneck pace, so much so that HMRC’s focus turned to dealing with various non PSC models, all of which had one thing in common – tax avoidance, namely schemes to encourage payment of less PAYE and NICs. - [HMRC pursues umbrella company over tax relief on travel expenses](https://www.lawspeed.com/hmrc-pursues-umbrella-company-over-tax-relief-on-travel-expenses/) - It has been reported that an umbrella company has been ordered to pay back incorrectly claimed tax relief of some £11m to HMRC. - [KID me or KID me not](https://www.lawspeed.com/kid-me-or-kid-me-not/) - In 2020 the Department of Business Enterprise and Industry Skills (BEIS) introduced legislation which requires every employment business (‘agency’) to produce information on pay to those candidates that it intends to supply. This is a step that should be taken before the agency enters into any contract with the candidate. Since the launch of the legislation, it is understood that compliance with the requirement has not been good, and BEIS has recently upgraded is capacity to look into this and complaints that arise. - [Government announces legislation to repeal ban on using agency workers to replace striking workers.](https://www.lawspeed.com/government-announces-new-legislation-to-repeal-ban-on-using-agency-workers/) - The government has announced legislation in response to the current strike action by rail workers and the threat of industrial action from other sectors. The legislation will allow the supply of agency workers to replace workers taking part in industrial action. Is this something that should be welcomed by the industry? Or is it likely to cause more problems and are there more important areas surrounding compliance that should be addressed. - [Are your tax compliance processes your weakest link?](https://www.lawspeed.com/are-your-tax-compliance-processes-your-weakest-link/) - In this country we have the belief, encouraged by successive administrations, that it’s ok to be self employed or work via a company. After all, you can buy a company off the shelf at the click of a few buttons for less than £25. Once set up you are entitled to a host of business tax reliefs whilst at the same time saving anyone you work for the trouble of paying out employer NICs. What could be better? - [When it comes to tax - can you trust what you’re being told?](https://www.lawspeed.com/when-it-comes-to-tax-can-you-trust-what-youre-being-told/) - Whatever investment you plan to make it is always wise to check the facts behind the proposal, particularly if the advice source is not regulated, and history shows that a failure to do so can be very expensive, particularly when it comes down to tax avoidance. - [Is KID relevant when supplying off payroll staff?](https://www.lawspeed.com/is-kid-relevant-when-supplying-off-payroll-staff/) - We are pleased to announce that a representative from the Department of Business, Energy and Industrial Strategy (BEIS) will be joining Lawspeed’s presentation on the tax and compliance issues arising from using off payroll staff on 14th July. - [Tax seminar with HMRC on MSC rules and more](https://www.lawspeed.com/tax-seminar-with-hmrc-on-msc-rules/) - This seminar on 14th July in London will take place in conjunction with HMRC to explain the managed service company (MSC) rules, why hirers and employment businesses could be liable for unpaid levels of PAYE and NICs, and the steps to take to avoid that risk. - [MSC risk for businesses referring to umbrellas - live issue](https://www.lawspeed.com/director-msc-risk/) - It has recently been widely reported that HMRC is pursuing numerous contractors serviced by the accountancy group Churchill Knight. See for example ‘Shock tax bills - [Ending employment – fast track process](https://www.lawspeed.com/ending-employment-fast-track-process/) - The recent action of P&O, in dismissing hundreds of employees apparently without notice or consultation, has hit the headlines and caused much consternation including at government level. - [Are your PAYE Terms up to date?](https://www.lawspeed.com/are-your-paye-terms-up-to-date/) - In April 2020, a key change was introduced affecting employment businesses supplying PAYE temps, which, due to the timing, in the midst of the first lockdown and introduction of furlough, may have slipped under the radar of many. However, it is important to check your compliance and take any required actions. - [Platinum Jubilee Bank Holiday – worker rights](https://www.lawspeed.com/platinum-jubilee-bank-holiday-worker-rights/) - The Government has announced an extra bank holiday on Friday 3rd June in celebration of the Platinum Jubilee. In addition, the traditional late May bank holiday is being moved to Thursday 2nd June, providing for a four-day holiday weekend. What do businesses need - [How to engage a contractor without IR35 risk](https://www.lawspeed.com/how-to-engage-a-contractor-without-ir35-risk/) - How to engage a contractor without IR35 risk One year on from the last controversial IR35 rule changes, Lawspeed announces webinar - [April increases – are you ready?](https://www.lawspeed.com/april-2022-increases-nmw-are-you-ready/) - April 2022 will see an increase in the National Minimum Wage (‘NMW’) combined with an increase in employers’ National Insurance contributions (‘NICs’), these changes will have an impact on engagement and supply chain costs. - [Provision of PPE to agency workers - new regulations](https://www.lawspeed.com/provision-of-ppe-to-agency-workers-new-regulations/) - From 6th April 2022, regulations relating to the provision of Personal Protective Equipment (‘PPE’) will be extended to cover workers as well as employees, placing responsibility on agencies for ensuring that appropriate PPE is provided to workers free of charge. - [Engaging sole traders – an IR35 workaround or just another pitfall for recruiters?](https://www.lawspeed.com/engaging-sole-traders-an-ir35-workaround-or-just-another-pitfall-for-recruiters/) - Following, the introduction of the off-payroll rules (IR35) in 2021 Lawspeed advisers have seen an increase in queries relating to the engagement of contractors as self-employed sole traders, as an alternative to personal service company (PSC) engagements. - [‘Remote’ right to work checks extended - again](https://www.lawspeed.com/remote-right-to-work-checks-extended-again-eu/) - For the past two years, due to lockdowns and work from home guidance, employers have been able to carry out right to work checks remotely. These arrangements were due to end in April 2022 - [Non-payment by an umbrella – where do agencies stand?](https://www.lawspeed.com/non-payment-by-an-umbrella/) - When agencies engage with umbrella companies, they rely on the umbrella making payments to contractors timeously and generally these arrangements work very smoothly, with payments being made either immediately, or very shortly after, receipt of funds from the agency. - [Return of the SSP rebate scheme for Covid-19 related absences](https://www.lawspeed.com/ssp-rebate-scheme-for-covid-19-related-absences/) - Regulations have now been laid before parliament formally reinstating the SSP rebate scheme that came to an end on 30th September 2021. - [Further BEIS Survey on Umbrella use](https://www.lawspeed.com/further-beis-survey-on-umbrella-use/) - Further to the government’s recent call for evidence (see our article on 14th December 2021) BEIS has now issued a short survey for completion by recruitment businesses. - [HMRC, Treasury and BEIS joint call for evidence on the Umbrella market](https://www.lawspeed.com/hmrc-treasury-and-beis-joint-call-for-evidence-on-the-umbrella-market/) - In addition to HMRC’s other actions, a call for evidence has been issued jointly by BEIS, HM Treasury and HMRC regarding umbrella companies. The document indicates concerns regarding regulatory and tax non-compliance in the sector, as well as signalling a clear intent to legislate, however to get it right information and evidence is sought on current arrangements. - [HMRC umbrella tool falls short – assurance is the name of the game](https://www.lawspeed.com/hmrc-umbrella-tool-falls-short-assurance/) - The Court of Appeal has upheld an earlier employment tribunal decision that a courier rider should be classed as a ‘worker’ irrespective that they could allocate work to other riders in a pool. - [Agency Workers Regulations (AWR) - a sleeping giant?](https://www.lawspeed.com/agency-workers-regulations-2010-awr-a-sleeping-giant/) - 10 years after it was introduced, the Agency Workers Regulations 2010 have seemingly lain unmentioned. The few reported claims bely the drama that unfolded in 2010 when the regulations, in some people’s minds, threatened the very end of agency supply work. - [House of Lords call for evidence on Off Payroll Rules & BEIS Survey on the Conduct Regulations](https://www.lawspeed.com/house-of-lords-call-for-evidence-on-off-payroll-rules/) - The Court of Appeal has upheld an earlier employment tribunal decision that a courier rider should be classed as a ‘worker’ irrespective that they could allocate work to other riders in a pool. - [Substitution – an overfished red herring?](https://www.lawspeed.com/substitution-an-overfished-red-herring/) - The Court of Appeal has upheld an earlier employment tribunal decision that a courier rider should be classed as a ‘worker’ irrespective that they could allocate work to other riders in a pool. - [Key factors identifying ‘outside IR35’ engagements](https://www.lawspeed.com/key-factors-ir35-engagements/) - Six months on from the new Off Payroll Rules there is still confusion over which assignments should fall inside or outside of IR35, with often differing opinions between contractors, recruiters, and clients. - [Clients imposing agency terms – problem solved](https://www.lawspeed.com/clients-imposing-agency-terms-problem-solved/) - Unsurprisingly many hirers have reviewed their contractor engagement policies since inception of the new IR35 rules in April this year. - [Flexible Working - Boon or Bane?](https://www.lawspeed.com/flexible-working-boon-or-bane/) - Following press reports today that the government will be holding a consultation on extending the right to flexible working, the effect of the pandemic on working practices and the recent high profile - [IR35 – a scourge for all but the risk averse](https://www.lawspeed.com/ir35-a-scourge-for-all-but-the-risk-averse/) - As time passes more evidence accrues of the fallout from the amended IR35 rules. With stories of penalty notices being issued to public authorities (we wonder if HMRC has yet issued any to itself) it seems only a matter of time before private sector hirers feel the bite of HMRC’s whip. - [Social care Levy impact on recruitment supply](https://www.lawspeed.com/social-care-levy-impact-on-recruitment-supply/) - The Association of Recruitment Consultancies responds to the article in Computer Weekly on 13th July 'IR35: Contractors demand tax and employment law alignment to protect ‘zero-rights’ workers' - [Calls for employment rights for contractors misconceived](https://www.lawspeed.com/calls-for-employment-rights-for-contractors-misconceived/) - The Association of Recruitment Consultancies responds to the article in Computer Weekly on 13th July 'IR35: Contractors demand tax and employment law alignment to protect ‘zero-rights’ workers' - [Employment Agency standards compliance webinars](https://www.lawspeed.com/employment-agency-standards-compliance-webinars/) - Employment Agency standards (EAS) at the department of BEIS, has launched a series of webinars for agencies and employment businesses to deal with some common compliance failings. - [Is now the time to review your employment contracts and policies? Free 30 minute review](https://www.lawspeed.com/time-to-review-your-employment-contracts-and-policies/) - As we move along the roadmap out of lockdown, with staff potentially returning to the office and the need for staff on the increase, now could be the optimum time to ensure that your employment contracts and policies are up to date. - [HMRC guidance provides clarity for umbrella workers](https://www.lawspeed.com/hmrc-guidance-for-umbrella-workers/) - The government has now published specific guidance for workers operating through umbrella companies which explains the nature of the arrangement and payments. - [Updated IR35 legislation now published and will apply from 6th April](https://www.lawspeed.com/uber-impact-ir35-psc-contractors-2/) - Towards the end of last year HMRC noted that unintended consequences were likely to flow from changes to wording in Chapter 10 of the Finance Act (IR35 rules) around the... - [Uber impact on IR35 and PSC contractors](https://www.lawspeed.com/uber-impact-ir35-psc-contractors/) - In our recent 'must read' articles 'IR35 made easy' and 'IR35 made easier' we addressed how to engage a contractor without risk and how to address risk in circumstances where there was no clear-cut answer on status. In this article, we consider some more specific issues surrounding engagements and, in particular, where contractors are paid on an hour/day rate basis… - [IR35 – is time charging an elephant?](https://www.lawspeed.com/ir35-is-time-charging-an-elephant/) - In our recent 'must read' articles 'IR35 made easy' and 'IR35 made easier' we addressed how to engage a contractor without risk and how to address risk in circumstances where there was no clear-cut answer on status. In this article, we consider some more specific issues surrounding engagements and, in particular, where contractors are paid on an hour/day rate basis… - [Sign up to our free IR35 webinar](https://www.lawspeed.com/free-ir35-webinar/) - Sign up to our free IR35 webinar - [School closures – options for working parents](https://www.lawspeed.com/school-closures-options-for-working-parents/) - The news of school closures and move to remote learning may be causing a headache for both working parents and employers. - [IR35 made easier – a must read for hirers and agencies](https://www.lawspeed.com/ir35-made-easier/) - On 1st December we published an article 'IR35 – made easy', in which we set out 5 questions to ask about the job requirement. - [Get prepared for a key minimum wage change in April 2021](https://www.lawspeed.com/key-minimum-wage-change-april-2021/) - In April 2021 the annual increase in national minimum wage rates will take effect, but this year there is a significant difference. - [IR35 – amendments in progress](https://www.lawspeed.com/ir35-amendments-in-progress/) - Following representations to HMRC, it has now announced more detail of its intended adjustments to the Off Payroll Rules. - [A clear sign that IR35 is going ahead in April 2021](https://www.lawspeed.com/clear-sign-ir35-going-ahead/) - On Monday 7th December, Jesse Norman, Financial Secretary to the Treasury, appeared before the House of Lords select committee, on the issue of the new Off Payroll Rules. - [Further guidance on furlough extension published](https://www.lawspeed.com/further-guidance-on-furlough-extension-published/) - Following the chancellor’s announcement last week on further adjustments to the coronavirus support schemes available to businesses, which includes extending the current Coronavirus... - [HMRC IR35 guidance still problematic, PAYE agencies not yet out of the woods](https://www.lawspeed.com/hmrc-ir35-guidance-still-problematic/) - This article is a copy of an article on the ARC website - "The recent furore over HMRC guidance that draws umbrella companies into scope of new IR35 rules may have died down... - [Preparation for IR35 and April 2021](https://www.lawspeed.com/preparation-for-ir35-and-april-2021/) - The announcement in March that the new IR35 off payroll rules would be delayed until April 2021 due to the Coronavirus pandemic came with a huge sigh of relief for many in... - [HMRC statement on IR35 Rules falls short](https://www.lawspeed.com/hmrc-statement-on-ir35-rules-falls-short/) - Umbrella companies have always operated at the lower end of the contractor supply chain employing workers who provide services either direct or through an agency to a hirer. - [When dismissals go wrong](https://www.lawspeed.com/when-dismissals-go-wrong/) - Umbrella companies have always operated at the lower end of the contractor supply chain employing workers who provide services either direct or through an agency to a hirer. - [Does new legislation spell doom for umbrellas?](https://www.lawspeed.com/does-new-legislation-spell-doom-for-umbrellas/) - Umbrella companies have always operated at the lower end of the contractor supply chain employing workers who provide services either direct or through an agency to a hirer. - [Job Retention Bonus Scheme applicable to agency workers](https://www.lawspeed.com/job-retention-bonus-scheme-applicable-to-agency-workers/) - In the recent Employment Appeal Tribunal (EAT) case of Gallacher v Abellio Scotrail Limited an earlier employment tribunal judgment that the dismissal of an employee following an irretrievable breakdown in working relations was fair was upheld, despite the fact that the employer had failed to follow any process. - [Dismissal following breakdown in working relations judged to be fair](https://www.lawspeed.com/dismissal-following-breakdown-in-working-relations-judged-to-be-fair/) - In the recent Employment Appeal Tribunal (EAT) case of Gallacher v Abellio Scotrail Limited an earlier employment tribunal judgment that the dismissal of an employee following an irretrievable breakdown in working relations was fair was upheld, despite the fact that the employer had failed to follow any process. - [New laws in force tomorrow on calculation of redundancy and notice pay for furloughed staff](https://www.lawspeed.com/new-laws-in-force-tomorrow-on-calculation-of-redundancy-and-notice-pay-for-furloughed-staff/) - The government has today announced legislation to ensure that furloughed employees receive statutory notice and redundancy pay based on their normal wages, rather than a reduced furlough rate. - [Furloughing agency workers post August 2020](https://www.lawspeed.com/furloughing-agency-workers-post-august-2020-cjrs-scheme-august-2020/) - August marks the start of the winding down of the current Coronavirus Job Retention Scheme (CJRS), which may signal the end of the furlough scheme for many agency workers. - [Further clarity provided on furlough and notice periods](https://www.lawspeed.com/furloughed-during-notice-periods/) - Following on from news this week that employees can be furloughed and a grant claimed under the ‘CJRS scheme during a period of statutory notice - [Clarity provided on claiming furlough grants during a notice period?](https://www.lawspeed.com/furlough-claim-notice-period/) - Following on from last months updated treasury order, government guidance on the Coronavirus Job Retention Scheme (‘CJRS’) has been updated to address the use of the scheme for employees who are being made redundant, specifically whether - [Return to work or redundancy?](https://www.lawspeed.com/furlough-redundancy/) - he Coronavirus Job Retention Scheme will begin to wind down from August 2020, with the scheme eventually being withdrawn by the end of October. - [Avoiding the annual leave avalanche?](https://www.lawspeed.com/annual-leave-furlough/) - Due to lockdown cancelled holidays, furlough and home working the reality is that many employees will have taken less annual leave in 2020 than would ordinarily have been the case. Therefore, as business - [IR35 going ahead in April 2021](https://www.lawspeed.com/ir35-april-2021/) - With the news that the off payroll measures in the Finance Bill have now passed through parliament, we now have certainty as to the content of the new IR35 rules and that they will apply from - [Spanner in the works over furlough grant availability during notice period](https://www.lawspeed.com/furlough-claim-during-notice/) - With employers expected to pay an increasing contribution towards the cost of furloughed employees from the 1st August, many businesses may be faced with making difficult decisions around - [Flexible furlough arrangements from July 2020](https://www.lawspeed.com/flexible-furlough-arrangements/) - The Government has introduced important changes and further guidance to the Coronavirus Job Retention Scheme (Furlough) from July 2020 - [Furlough update - something more light hearted](https://www.lawspeed.com/furloughing-ended/) - With some exceptions it is now too late to start furloughing as the deadline expired two days ago. This is because the 3 week minimum required period before 1st July cannot be achieved after 10th June. This applies - [Covid-19 - What to do as work drops away – Updated tips from the Lawspeed Covid Team](https://www.lawspeed.com/updated-covid-19-tips/) - When lockdown started, the team at Lawspeed published five tips to help businesses through the crisis - [Protecting against back door hires](https://www.lawspeed.com/protecting-against-back-door-hires/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Is furlough time for a holiday?](https://www.lawspeed.com/is-furlough-a-holiday/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Coronavirus sick pay scheme](https://www.lawspeed.com/coronavirus-sick-pay-scheme-2/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Holiday and furloughed agency workers – New Guidance](https://www.lawspeed.com/holiday-furloughed-agency-workers-new-guidance/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Return to work after furlough – check employment contracts now](https://www.lawspeed.com/returning-to-employment-contracts/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [New advice on returning to work](https://www.lawspeed.com/returning-to-work/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Update on furlough payments for umbrella workers](https://www.lawspeed.com/furlough-payments-for-umbrella-workers/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Can umbrella workers expect to be furloughed and fairly paid?](https://www.lawspeed.com/umbrella-companies-furlough/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Does holiday accrue for agency workers on furlough?](https://www.lawspeed.com/holiday-agency-workers-furlogh/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Coronavirus payment schemes – agency workers are out in the cold – how to help](https://www.lawspeed.com/coronavirus-help-for-agency-workers/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Lawspeed donates to the NHS](https://www.lawspeed.com/lawspeed-donates-to-the-nhs/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Covid-19 - What to do as work drops away – Tips from the Lawspeed Covid Team](https://www.lawspeed.com/covid-19-tips/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [IR35 postponed for 12 months – what to do](https://www.lawspeed.com/ir35-postponed/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Further evidence that IR35 will go ahead](https://www.lawspeed.com/ir35-will-go-ahead/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [Change to cliff edge IR35 rules provides some relief, but contracts are critical](https://www.lawspeed.com/ir35-rules-provides-some-relief-2/) - The announcement last week that the new IR35 rules will apply to work done on or after 6th April 2020 instead of payments made from 6th April will be a relief for many, says the recruitment and employment specialist Lawspeed. - [STOP PRESS - HMRC announces a change to the application of the Off Payroll Rules](https://www.lawspeed.com/hmrc-announces-a-change/) - HMRC has today announced that the new Off Payroll Rules, coming into force in April 2020, will apply to payment for services performed on or after 6th April 2020 rather than payments made on or after that date. - [HMRC to speak at Lawspeed IR35 seminar](https://www.lawspeed.com/hmrc-at-lawspeed-seminar/) - Lawspeed is delighted to announce that Justin Giles of HMRC will present at its forthcoming IR35 seminar to be held in London on Wednesday 26th February 2020. - [IR35 – post 6th April 2020, contractor or agency worker? Lawspeed Seminar 26th February 2020](https://www.lawspeed.com/ir35-april-2020-lawspeed-seminar/) - To help employment businesses working with company contractors understand the regulatory and contract impact of the changes to the IR35 rules which are now set to apply from 6th April, Lawspeed will be holding a practical hands on seminar in London. - [How important is a good client contract for staffing engagement?](https://www.lawspeed.com/contract-for-staffing-engagement/) - The answer is "very" according to the recruitment and employment law specialist Lawspeed. "A contract should be much more than evidence of a handshake. A good contract should always detail the relationship and what is expected of each party, as well as address eventualities that may arise during the period of the contract. This may sound obvious but it is here that many contracts fall down." - [IR35 strategy for agencies and hirers](https://www.lawspeed.com/ir35-strategy-agencies-and-hirers/) - Have you decided what you plan to do to address the contractor tax changes next April? Some options work better than others... - [What to do if a hirer appoints a predatory vendor](https://www.lawspeed.com/what-to-do-if-the-hirer-appoints-a-predatory-vendor/) - Various high profile businesses offer IR35 tax and expenses insurance as a way of offsetting risk against an IR35 claim. Historically the party able to take up the insurance was the contractor who would be liable but since the onset of the public sector rules, the liable party is the fee payer, namely the hirer or agency (if one is involved) that pays the contractor company. - [Does the limited company opt out have a future?](https://www.lawspeed.com/limited-company-opt-out-have-a-future/) - Various high profile businesses offer IR35 tax and expenses insurance as a way of offsetting risk against an IR35 claim. Historically the party able to take up the insurance was the contractor who would be liable but since the onset of the public sector rules, the liable party is the fee payer, namely the hirer or agency (if one is involved) that pays the contractor company. - [IR35 conference set to provide 360 degree view](https://www.lawspeed.com/ir35-conference-set-to-provide-360-degree-view/) - Various high profile businesses offer IR35 tax and expenses insurance as a way of offsetting risk against an IR35 claim. Historically the party able to take up the insurance was the contractor who would be liable but since the onset of the public sector rules, the liable party is the fee payer, namely the hirer or agency (if one is involved) that pays the contractor company. - [Lawspeed offers free IR35 insurance cover check, following draft legislation announcement](https://www.lawspeed.com/free-ir35-insurance-cover-check/) - Various high profile businesses offer IR35 tax and expenses insurance as a way of offsetting risk against an IR35 claim. Historically the party able to take up the insurance was the contractor who would be liable but since the onset of the public sector rules, the liable party is the fee payer, namely the hirer or agency (if one is involved) that pays the contractor company. - [Simplistic IR35 offerings muddy the waters](https://www.lawspeed.com/simplistic-ir35/) - IR35 news dominates the contracting market but at the end of the day the most important thing for a contractor and a hirer is to have the right contract terms in place to protect fees, expectations and the work delivery, writes Adrian Marlowe, MD of the recruitment law specialist Lawspeed. - [Are blanket assessments under IR35 part of HMRC’s plan?](https://www.lawspeed.com/ir35-assessment/) - Following the article posted by People Management on 3rd May “evidence of blanket IR35 assessments ‘deeply concerning’, industry warns” the contracting sector should be alive to the fact that HMRC may be seeking to achieve this outcome, says - [To report or not report – GDPR implications if you are hacked ](https://www.lawspeed.com/to-report-or-not-report-gdpr-implications-if-you-are-hacked/) - If business contacts or friends start to receive emails from you which are obviously spam or phishing, then the chances are that your email has been hacked or that some form of virus or malicious software has found its way onto your computer and account. - [IR35 consultation explained](https://www.lawspeed.com/ir35-consultation-explained/) - As with the public authority rules, responsibility for determining the tax status of contractors is to switch from the contractor to the hirer. Tax liability passes to the ‘fee payer’, which, with three exceptions, is the business that contracts with the contractor. - [Why understanding employment status is important in 2019](https://www.lawspeed.com/why-understanding-employment-status-is-important-in-2019/) - Whenever engaging an individual it is always important to understand the rules and rights that apply. These are determined by the employment status of the individual, whether an employee, a worker, a contractor, self employed or via a company (e.g. a PSC or umbrella), or some other kind of casual operator. - [Service Provider Accreditation (SPA) – rising to the challenge, a win win for everyone](https://www.lawspeed.com/service-provider-accreditation/) - Lawspeed is delighted to announce the launch of a new accreditation for umbrella companies and other service providers. To be known as SPA (service provider accreditation). - [IR35 - Umbrella company v PSC, why you should care?](https://www.lawspeed.com/ir35-umbrella-company-v-psc-why-you-should-care/) - The contractor tax rules known as IR35 are set to change. In simple terms, agencies and hirers that have historically hired contractors without risk of tax liability will, from 5th April 2020, be liable if they get the IR35 rules wrong. It is therefore relevant to understand when the rules apply. - [BBC impact – report on IR35 should open eyes to reality](https://www.lawspeed.com/bbc-impact-report-on-ir35-should-open-eyes-to-reality/) - The recent report from the National Audit Office (NAO) concerning the impact of public sector IR35 rules on the BBC in 2017 should be taken seriously. - [IR35 – they’re all caught! Risk analysis for agencies and hirers](https://www.lawspeed.com/ir35-theyre-caught-risk-analysis-agencies-hirers/) - Until the onset of the public sector IR35 rules, there was little tax or employment risk of dealing with a standard company contractor so long as the obvious tax avoidance models were avoided. - [IR35 - Risk around the corner](https://www.lawspeed.com/ir35-risk-around-corner/) - The BBC has reported that it believes the IR35 public sector rules are to be extended to the private sector in the budget later this month. Anyone who has followed the path of this controversial tax proposal will not be taken by surprise. - [The Winchester case – an IR35 lesson for HMRC if friction to be avoided](https://www.lawspeed.com/winchester-case-ir35-lesson-hmrc-friction-avoided/) - Recent reports involving a claim by the contractor Susan Winchester (Ms. W) for holiday pay deserve more analysis. The reports, published by Contractor Calculator (CC) and on the IPSE website, state that Ms W received an out of court settlement on the day of an Employment Tribunal hearing for her claim for unpaid holiday pay based on the fact that she was an agency worker, the claim apparently having been made under the Agency Worker Regulations. - [HMRC tries it on with football referees, but scores own goal](https://www.lawspeed.com/hmrc-tries-football-referees-scores-goal/) - There are few people in this world who are more autonomous than football referees. Controlling the beautiful game, sometimes to the frustration of one team or another, the ref is the authority and calls the shots until the final whistle blows. Even the video ref is a referee with comprehensive power to exercise judgment. - [2018, a year of change?](https://www.lawspeed.com/2018a-year-of-change/) - Recruitment has always been about matching a person to a role and then making it happen in the most efficient and productive way. In the early days the only issue to consider, apart from getting the right person for the job, was securing fees. - [ARC statement: Budget announcement 22 November 2017](https://www.lawspeed.com/arc-statement-budget-announcement-22-november-2017/) - The Association of Recruitment Consultancies (ARC) welcomes the cautious approach adopted by the Chancellor in his budget today in relation to imposition of the public sector tax rules (commonly known as IR35) on the private sector and in further considering employment practices following Matthew Taylor’s report earlier this year. - [Court of Appeal decides non-competition clause is unlawful](https://www.lawspeed.com/court-of-appeal-decides-non-competition-clause-is-unlawful/) - In a recent decision, Tillman (T) v Egon Zehnder Ltd (EZ), the Court of Appeal refused to enforce a ‘non-compete’ clause in an ex-employee’s contract, on the grounds that the clause was too wide and therefore amounted to an unlawful restraint of trade. - [Modern Slavery – supply chain compliance challenges recruitment businesses](https://www.lawspeed.com/modern-slavery-supply-chain-compliance-challenges-recruitment-businesses/) - A new global report has revised the estimated number of victims of modern slavery worldwide upwards, from 21m to 40m. Around 10,000 victims are thought to be living in the UK. - [What impact would the proposed extension of the “IR35” off-payroll rules to the private sector have on your business?](https://www.lawspeed.com/what-impact-would-the-extension-of-the-ir35-off-payroll-rules-being-extended-to-the-private-sector-have-on-your-business/) - IR35 and the “off payroll rules” are once again hitting the headlines, with HMRC giving its biggest indication yet that the rules may be extended to the private sector. - [Webinar: November 2017 - Plugging the gaps – common problems with agency contracts and how to resolve them](https://www.lawspeed.com/webinar-november-2017-plugging-gaps-common-problems-agency-contracts-resolve/) - This webinar will focus on contracts that recruiters have in place with hirers, whether a recruiters own terms, or those drafted by a hirer or RPO, and some of the common problems we see with these agreements which could result in future liability or lost fee, and steps that can be taken to address these matters and offer greater protection. - [Monitoring employees – not so easy](https://www.lawspeed.com/monitoring-employees-not-so-easy/) - From a quick message to a family member whilst at work all the way to the Upper Chamber of the European Court of Human Rights: the latest ruling on privacy rights should be a reminder to all employers that monitoring their employees’ communications is a risky business. - [Why doing nothing can now be a criminal offence](https://www.lawspeed.com/why-doing-nothing-can-now-be-a-criminal-offence/) - The Criminal Finances Act 2017, which comes fully into effect on 30 September 2017, introduces new corporate offences for failing to prevent the facilitation of tax evasion, both in the UK and abroad. - [Cyber security expert to speak at Lawspeed GDPR compliance seminar](https://www.lawspeed.com/cyber-security-expert-to-speak-at-lawspeed-gdpr-compliance-seminar/) - Leading cyber security expert Francis West, CEO of WestTek Solutions, will be speaking on how recruitment businesses can protect their data against cyber attacks and the technological implications of GDPR at our seminar being held on 10th October in London. - [Data protection: recruiters can no longer hide under ‘blanket’ consent](https://www.lawspeed.com/data-protection-recruiters-can-no-longer-hide-under-blanket-consent/) - Most recruiters know the importance of obtaining candidates’ consent to use personal data in order to comply with their obligations under data protection legislation. - [ICO prosecution and fine should be a lesson to employees and recruitment agencies](https://www.lawspeed.com/ico-prosecution-and-fine-should-be-a-lesson-to-employees-and-recruitment-agencies/) - The recent prosecution and fine of HomeServe Membership Ltd’s recruitment manager should serve as a warning to all companies about the potential consequences of employees illegally sharing personal data that they have access to as part of their job. - [Lawspeed announces GDPR and data protection compliance seminars for October 2017, London and Manchester](https://www.lawspeed.com/lawspeed-announces-gdpr-and-data-protection-compliance-seminars-for-october-2017-london-and-manchester/) - Ravi Murphy, director of Lawspeed said “the new laws are very complex, with severe penalties for non-compliance. The law will apply from May 2018, but it is essential for recruiters to prepare early. The seminars will deal with “the what, the why and the how”, with attendees learning about the areas of operation affected, processes - [Lawspeed launches new SPA service](https://www.lawspeed.com/lawspeed-launches-new-spa-service/) - Now called ‘Service Provider Accreditation’, Lawspeed’s new SPA service provides assurance to anyone wishing to use a service provider or umbrella company as its payment provider. In announcing the updated service, first launched in 2009, Lawspeed director Ravi Murphy said “tax regulation and rights such as under the AWR can prove a minefield for the - [Employee imprisoned following Court Order after sending confidential e-mails to home address](https://www.lawspeed.com/employee-imprisoned-following-court-order-after-sending-confidential-e-mails-to-home-address/) - A recent ruling in the High Court serves as a reminder to all business owners, especially recruiters, of how important it is to ensure that contracts of engagement with employees and other personnel include strong provisions protecting your confidential information. For those in the recruitment sector this means your databases of candidates and clients - - [The Taylor Review of Modern Working Practices- Lawspeed response.](https://www.lawspeed.com/the-taylor-review-of-modern-working-practices-lawspeed-response/) - Lawspeed has read and analysed the Taylor review published this week. It is an aspirational document full of recommendations, but as it is only advisory its impact will only really be known if and when the government adopts any of the proposals. Furthermore, the recommendations could be adopted wholesale, with a light touch, or - [Contract risks and liabilities – have you really got them covered?](https://www.lawspeed.com/contract-risks-and-liabilities-have-you-really-got-them-covered/) - Where a hirer or RPO sends its own form of contract to an agency for signature, it is important to have the contract independently reviewed by experts to ensure that it does not include onerous clauses, exposing the agency to risk. Ravi Murphy, director at the recruitment law and compliance specialists Lawspeed, explains the common - [Can you rely on a hirer’s ‘outside IR35’ assertion?](https://www.lawspeed.com/can-you-rely-on-a-hirers-outside-ir35-assertion/) - Since the onset of the new IR35 rules, it appears that many contractor jobs are now being advertised as ‘outside IR35’. At the same time, assessments of the application of the new tax law rely upon HMRC’s controversial online Employment Status Service (ESS) tool. Are public sector hirers mistaken to rely on the tool, and - [Lawspeed announces IR35 seminar: 21 June 2017, London](https://www.lawspeed.com/lawspeed-announces-ir35-seminar-21-june-2017-london/) - The new IR35 rules effective from 6th April 2017 were predicted by some to harbour disaster for public sector hirers, as key contractors were set either to walk out or increase their rates. However with hundreds of jobs now advertised as ‘outside IR35’, has HMRC strategy been defeated already, or is the ground set for - [Lawspeed delighted at publication of IR35 critique](https://www.lawspeed.com/lawspeed-delighted-at-publication-of-ir35-critique/) - On Friday last week the Association of Recruitment Consultancies (ARC) was told that its critique of the proposed new IR35 rules was to be published by the Treasury Select Committee. “The critique was based upon advice we provided to ARC” says Ravi Murphy, client services director of Lawspeed, the specialist legal and compliance consultancy to - [Today isn’t just about public sector IR35](https://www.lawspeed.com/today-isnt-just-about-public-sector-ir35/) - The changes to IR35 in the public sector may be hogging the headlines, but recruiters should not overlook the other important changes this month, including the Apprenticeship Levy, Gender Pay Gap (GPG) reporting, increases in the national minimum wages, changes to statutory payment rates, and the modern slavery disclosure duty all starting to kick in. - [Modern slavery legislation – Think you’re not affected? Think again, advises Lawspeed](https://www.lawspeed.com/modern-slavery-legislation-think-youre-not-affected-think-again-advises-lawspeed/) - Since April 2016 all businesses with an annual turnover above £36m are obliged by the Modern Slavery Act 2015 (MSA) to publish Slavery and Human Trafficking statements (SHTs), setting out the steps that they have taken to combat modern slavery within their businesses and supply chains (including the recruitment agencies they use). However, as Ravi - [Existing contracts and the new IR35 public sector rules](https://www.lawspeed.com/existing-contracts-and-the-new-ir35-public-sector-rules/) - Changes to the IR35 rules relating to the supply of contractors in the public sector will apply from 6 April 2017, meaning that, where IR35 applies, a recruiter will be responsible for accounting to HMRC for PAYE and NICs, including employers NICs, on payments it makes to a personal service company. Whilst there are a - [Lawspeed launch fixed price Agency Fee Recovery service](https://www.lawspeed.com/lawspeed-launch-fixed-price-agency-fee-recovery-service/) - Recruiters often find that they have nowhere to go for help with navigating the contractual and legal minefield of fee recovery, with the result that some clients think that they can simply ignore or refuse to pay agency fees. As a response to growing concerns from recruitment agencies, Lawspeed has developed a fixed price Agency - [Rumour of change to proposed IR35 public sector liability rules scotched](https://www.lawspeed.com/rumour-of-change-to-proposed-ir35-public-sector-liability-rules-scotched/) - There is much concern about the new public sector IR35 rules, which are proposed to apply from 6th April 2017, for a host of reasons. One such reason is that where an agency or third party is to be the fee payer, there is no provision for the hirer to be liable if the fee - [Ignore modern slavery compliance at your peril](https://www.lawspeed.com/ignore-modern-slavery-compliance-at-your-peril/) - As we warned some time ago, proposed changes in the law mean that even recruitment agencies with modest turnovers could now be affected by the modern slavery legislation (click here for previous article). The modern slavery reporting obligation currently only applies to businesses with a UK turnover in excess of £36m. Any requirement involving turnover - [HMRC and the online tool- Have they painted themselves into a corner?](https://www.lawspeed.com/hmrc-and-the-online-tool-have-they-painted-themselves-into-a-corner/) - The idea of ‘painting a picture’ in order to make a well-rounded assessment of employment status is a widely acknowledged one. However in light of the more ‘mechanical’ approach soon to be taken by HMRC with regards to arguably one of the most nuanced tests, IR35, a recent case reiterates again the need to make - [Recruiter fined for flouting Conduct Regulations](https://www.lawspeed.com/recruiter-fined-for-flouting-conduct-regulations/) - A stark reminder was handed down recently by the courts – comply with the legislation or face the consequences! The director of Whites Recruitment International pleaded guilty to eight charges contrary to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations) for failing to supply workers with the necessary paperwork and for - [Negative publicity over AWR ‘breach'](https://www.lawspeed.com/negative-publicity-over-awr-breach/) - Agencies that do not fully meet their obligations under the Agency Workers Regulations 2010 (‘AWR’) risk immeasurable damage to their reputations. However, as public awareness of the legislation increases, employers may face negative media attention, even when compliant. The danger was highlighted in the recent Guardian article on the practices of the internet retailer ASOS. - [Statutory employment payments to rise in 2017](https://www.lawspeed.com/statutory-employment-payments-to-rise-in-2017/) - Last week the government announced new rates for statutory employment payments, state pensions and most other benefits. The current weekly rate of statutory adoption, maternity, paternity and shared parental pay will rise from £139.58 to £140.98. Statutory sick pay will also rise from £88.45 to £89.35 a week. The annual increase in payment rates takes - [New Public Sector IR35 Rules](https://www.lawspeed.com/new-public-sector-ir35-rules/) - As was widely anticipated, the draft legislation and guidance published yesterday has confirmed that where a contractor provides services to a public sector hirer and the arrangement is considered to be caught by IR35 the paying party will be obliged to deduct tax and primary NICs from the payment it makes. The gross amount paid - [ARC comments on fairer tax focus in Autumn Statement](https://www.lawspeed.com/arc-comments-on-fairer-tax-focus-in-autumn-statement/) - ARC welcomes the Chancellor’s focus on fairer tax within the Autumn Statement; the policy paper states that the ‘government will ... consider how the system could be made fairer between workers carrying out the same work under different arrangements’. ARC has long campaigned for a fairer tax system for supplied personnel, arguing that - [ARC comment on the Autumn Statement 2016](https://www.lawspeed.com/arc-comment-on-the-autumn-statement-2016/) - It is clear that many of the measures announced by the Chancellor today in his Autumn Statement will have some impact on the recruitment sector and on labour relations. Ben Grover, External Policy Adviser for the Association of Recruitment Consultancies (ARC) said “As always, the devil will be in the detail and we shall - [Recruiters excel in discrimination survey](https://www.lawspeed.com/recruiters-excel-in-discrimination-survey/) - Go to the top of the class! A report recently published by the Equality and Human Rights Commission (EHRC) stated that responses given by recruitment agents, to questions on discrimination between UK and foreign-born workers, were “superior on every single question” to those given by employers. However, the report also highlighted areas in recruiters’ knowledge - [Recruiters beware – your terms may be at risk!](https://www.lawspeed.com/recruiters-beware-your-terms-may-be-at-risk/) - Could you be bound by amendments to your terms, agreed by your office junior in an email, without your knowledge or consent? You might think this sounds far-fetched, but a recent court case held that an exchange of emails could be sufficient to amend contractual terms, despite a “no amendment” clause. Clear contractual terms are - [Can recruiters afford to ignore the recent Lock case on the inclusion of commission in holiday pay calculations?](https://www.lawspeed.com/can-recruiters-afford-to-ignore-the-recent-lock-case-on-the-inclusion-of-commission-in-holiday-pay-calculations/) - The recent ruling by the Court of Appeal in the case of Lock v British Gas confirms the EAT decision that when calculating holiday pay, the commission a worker would have earned, had they not been on holiday, must be included. This clearly has more far-reaching effects on those in the recruitment sector, where large - [AWR – Is your business protected?](https://www.lawspeed.com/awr-is-your-business-protected/) - The Agency Worker Regulations 2010 (AWR) are 5 years old, but have they become part of your internal processes? Could your business have become complacent? We have seen very little case law on this area. However, Lawspeed has experienced a recent increase in clients receiving complaints and cases based on the AWR. What can - [1st October – National Minimum Wage Increase](https://www.lawspeed.com/1st-october-national-minimum-wage-increase/) - From 1st October this year, the National Minimum Wage (NMW) will rise again, with the main rate rising for those aged under 25 years’ old. The National Living Wage rates change every April and the current applicable rate is £7.20 per hour for workers aged 25 or over. The new hourly rates will therefore be - [Are you responsible for checking that a temporary worker has a right to work in the UK?](https://www.lawspeed.com/are-you-responsible-for-checking-that-a-temporary-worker-has-a-right-to-work-in-the-uk/) - October 2016 will see the introduction of a criminal offence for an employee to work when he or she does not have a legal right to do so. Whilst this can be seen as a positive step as it makes the employee responsible for his or her actions, it does not take away the responsibility - [Finance Act 2016 receives Royal Assent](https://www.lawspeed.com/finance-act-2016-receives-royal-assent/) - The Finance Bill 2015 finally received Royal Assent last Thursday 15th September, bringing into law the restrictions on tax reliefs for travel and subsistence expenses (in effect since April 2016), and the Apprenticeship Levy, amongst other things. The Act is based on George Osborne’s (final) budget, and the long delay can be put down to - [Patchy compliance with UK anti-slavery requirements](https://www.lawspeed.com/patchy-compliance-with-uk-anti-slavery-requirements/) - From September 2016, businesses with a turnover of £36m or more are required by the Modern Slavery Act 2015 (“MSA”) to publish statements on their websites in order to indicate the steps that have been taken to combat modern slavery and human trafficking within their supply chains, yet a recent report by the Thompson Reuters - [Do your terms offer you protection if an offer is withdrawn?](https://www.lawspeed.com/do-your-terms-offer-you-protection-if-an-offer-is-withdrawn/) - An agency that is recruiting candidates to be engaged by a hirer could be faced with a difficult situation if a hirer makes an offer to a candidate that is later withdrawn. This may not only damage the relationship with the candidate but could also result in a costly legal claim, as demonstrated by the - [Online court could become a reality](https://www.lawspeed.com/online-court-could-become-a-reality/) - A recent review into the court system has recommended the introduction of an online court for straightforward claims of less than £25,000 in value, with the intention that claims and evidence could be submitted online for consideration by a judge. Whilst this is just a recommendation, if implemented it could enable parties to submit claims - [Watch out for claims based on worker status](https://www.lawspeed.com/watch-out-for-claims-based-on-worker-status/) - A number of drivers for Uber, the app based taxi firm, are currently awaiting decisions from the Employment Tribunal on claims that they are workers rather than self-employed and therefore should receive basic worker rights, such as National Minimum Wage and holiday pay. Whilst Uber drivers use their own vehicles, set their own hours and - [Flexible working](https://www.lawspeed.com/flexible-working/) - For most parents the school holidays can be a challenging time, and many employees may be facing difficulties when trying to balance childcare with work commitments. However, this can be just as much of a headache for an employer who has to manage and decide upon specific requests. If not already organised employees may be - [Chicken or the egg? – landmark corporate modern slavery ruling](https://www.lawspeed.com/chicken-or-the-egg-landmark-corporate-modern-slavery-ruling/) - A landmark civil case is a warning to businesses to take appropriate steps to make sure modern slavery and human trafficking is eradicated from their supply chains. This is the first time that the English Court has awarded damages against a company in relation to modern slavery issues. The 6 Lithuanian claimants were supplied by - [A perfect summer storm? A warning on discrimination](https://www.lawspeed.com/a-perfect-summer-storm-a-warning-on-discrimination/) - This summer could easily prove itself as a discrimination minefield. Euro 2016, school holidays, early Ramadan and recent case law on religious manifestations all come with their own potential workplace risks. With Euro 2016 having (literally) kicked off in France employees may wish to leave early, take days off or pull the proverbial “sickie” during - [Highly complex tax rules for agencies using contractors leading to unprecedented risks and liabilities](https://www.lawspeed.com/highly-complex-tax-rules-for-agencies-using-contractors-leading-to-unprecedented-risks-and-liabilities/) - The tax rules for agencies using contractors are now highly complex leading to an unprecedented range of risks and liabilities. Lawspeed will be delivering a comprehensive presentation highlighting the evolution of the contractor market and the tax consequences of different types of operations at its forthcoming “Taxing Times” seminar on 16th June in London. “An - [New IR35 public sector proposals could make agencies responsible for contractor PAYE tax](https://www.lawspeed.com/new-ir35-public-sector-proposals-could-make-agencies-responsible-for-contractor-paye-tax/) - HMRC’s latest consultation “Off-payroll working in the public sector: reform of the intermediaries legislation” announced on 26th May 2016 relates to IR35 and once again puts agencies squarely in the firing line, this time for agencies supplying into the public sector. Public sector bodies include the NHS, educational establishments, local and central government, the BBC, - [HMRC launches consultation on reform of the intermediaries legislation (IR35) for off-payroll working in the public sector](https://www.lawspeed.com/hmrc-launches-consultation-on-reform-of-the-intermediaries-legislation-ir35-for-off-payroll-working-in-the-public-sector/) - HMRC has published the anticipated consultation announced in the Budget 2016 on new measures within the IR35 rules that will move responsibility for applying the intermediaries legislation on workers operating through their own limited company in the public sector to the public sector body, agency or other third party paying the worker’s company. The intermediaries - [Should umbrella company directors be asked to guarantee tax liability?](https://www.lawspeed.com/should-umbrella-company-directors-be-asked-to-guarantee-tax-liability/) - No one can question whether the umbrella market is going through a period of uncertainty following the new restriction of tax relief on travel and subsistence expenses, says the legal and compliance consultancy Lawspeed, which specialises in advising the recruitment sector and supply agencies. “It’s now all about risk”, observes Theresa Mimnagh, Associate Director of - [HMRC doesn’t always get it right](https://www.lawspeed.com/hmrc-doesnt-always-get-it-right/) - In a recent case of salary sacrifice HMRC’s guidance was held to be incorrect. The case of Peninsula Business Services Ltd v Donaldson was about whether child care vouchers allowable in place of salary under a salary sacrifice scheme run by the employer should continue to be paid during a period of maternity leave. HMRC’s - [Finance Bill ramifications still not clear](https://www.lawspeed.com/finance-bill-ramifications-still-not-clear/) - As we are approaching the two month mark after the 6th April 2016 agencies are reporting that they are still unsure as to what actions they need to take to avoid getting caught by the new tax rules relating to travel and subsistence expenses. “We have had a range of queries about liability and what - [To compete or not compete? – Department of BIS calls for evidence on non-compete clauses](https://www.lawspeed.com/to-compete-or-not-compete-department-of-bis-calls-for-evidence-on-non-compete-clauses/) - Every business has information it wants to protect as it is integral and invaluable to its success. This can include client lists, the way the business is operating, pricing strategies and strategic information on customers. An ex-employee with access to this information may be an attractive asset to a competitor seeking to encroach upon the - [What not to wear? Workplace taboo tattoos and the wrong sized heels](https://www.lawspeed.com/what-not-to-wear-workplace-taboo-tattoos-and-the-wrong-sized-heels/) - It’s commonplace for employers and temporary work agencies to request their workers comply with a dress code that sets out what they can or cannot wear during working hours. In most situations workers willingly comply, but what can happen when a dress code is ignored, challenged, or seen as a discriminatory expectation? Two recent situations - [New case law widens who is or isn’t protected under the Equality Act 2010](https://www.lawspeed.com/new-case-law-widens-who-is-or-isnt-protected-under-the-equality-act-2010/) - A recent Court of Appeal decision in the case Secretary of State for Justice v Windle and Arada has ruled that an employment tribunal can take account of the ‘absence of mutuality of obligation’ (now a common phrase when dealing with employment status disputes and IR35) when deciding whether an individual is an ‘employee’ for - [New role of Director of Labour Market Enforcement](https://www.lawspeed.com/new-role-of-director-of-labour-market-enforcement/) - Yesterday (12/05/2016) the Immigration Bill received Royal Assent and became the Immigration Act 2016. The Act includes measures announced in the Government response to the joint BIS/Home Office consultation on ‘Tackling Exploitation in the Labour Market’ which was published on 12 January 2016. The measures are as follows: Create the role of Director of Labour - [Managed Service Company (MSC) ruling rings alarm bells](https://www.lawspeed.com/managed-service-company-msc-ruling-rings-alarm-bells/) - Despite having been introduced in 2007 case law on the MSC legislation (Chapter 9 Part 2 Income Tax [Earnings and Pensions] Act 2003) is relatively scarce. However, a recently published ruling, in Christianuyi Ltd & Ors v Revenue & Customs, from the First-tier Tax Tribunal should certainly ring alarm bells with any agency or umbrella - [To blow (or not blow) the whistle?](https://www.lawspeed.com/to-blow-or-not-blow-the-whistle/) - Have you ever had a candidate approach you with concerns about what has been going on during an assignment? If you have robust contracts in place and follow proper processes and procedures then you should be the first port of call. As you know, it is always best to handle situations like these in an - [Pulling (one too many) “sickies”– how to deal with malingering employees?](https://www.lawspeed.com/pulling-one-too-many-sickies-how-to-deal-with-malingering-employees/) - A malingering bus driver at Metroline claimed to be sicker than he really was. It is true that Mr Ajaj suffered an injury at work, following which Occupational Health deemed him unfit for work for some time. However, his employer became suspicious as it believed that there was an inconsistency in the reporting of his - [Gender Pay Gap reporting requirements could be extended to agency workers](https://www.lawspeed.com/gender-pay-gap-reporting-requirements-could-be-extended-to-agency-workers/) - It has been reported that Government Equalities Office (‘GEO’) has confirmed that Gender Pay Gap (‘GPG’) reporting requirements to apply to "employees" in the wider sense, as defined by the Equality Act 2010 (‘EqA’), which may include some agency workers. Essentially, GPG reporting requirements mean that businesses with more than 250 “relevant employees” will be - [New Lawspeed webinar programme announced](https://www.lawspeed.com/new-lawspeed-webinar-programme-announced/) - Lawspeed launches its new monthly live webinar programme, offering top quality training on a range of recruitment law topics. Our webinars provide managers, directors and employers in the recruitment sector with practical guidance and useful, clear overviews about current and looming legislation. The webinars are delivered by our team of legal experts, who have received - [Bonus Decisions – further support for employer discretion](https://www.lawspeed.com/bonus-decisions-further-support-for-employer-discretion/) - Bonuses and commission are well established in the recruitment industry culture. The benefits are bountiful. It motivates your consultants and generates income to your business which in turn leads to sometimes sizeable bonus payments to your staff. Everybody wins. Until the working relationships become strained. Even the most amicable parting of ways tend to have - [Lawspeed introduces reports on tax advice and models](https://www.lawspeed.com/lawspeed-introduces-reports-on-tax-advice-and-models/) - Lawspeed introduces a series of incisive sector reports, providing recruitment agencies and umbrellas with comprehensive and practical advice on key taxation and legal issues. The reports are designed to provide guidance for recruitment agencies - helping them to make informed decisions and to protect commercial interests. Increasingly agencies are faced with new and complex tax - [Gender pay gap reporting requirements – are you ready?](https://www.lawspeed.com/gender-pay-gap-reporting-requirements-are-you-ready/) - The government has published draft legislation on gender pay reporting which will affect businesses with 250 employees or more. Essentially, the changes mean that businesses with more than 250 employees will be required to publish their gender pay gap information on their website, confirming in a statement the accuracy of such information. The aim of - [Slavery and Human Trafficking Statements – are you ready to go public on 1st April 2016?](https://www.lawspeed.com/slavery-and-human-trafficking-statements-are-you-ready-to-go-public-on-1st-april-2016/) - You may be thinking that this probably has nothing to do with your business. Think again. The obligation under the Modern Slavery Act 2015 (‘MSA’) applies to organisations that have an annual turnover of £36 million and above and is therefore likely to affect recruiters and umbrella companies more than other SMEs due to, for - [Understanding supervision direction or control is not for the faint hearted](https://www.lawspeed.com/understanding-supervision-direction-or-control-is-not-for-the-faint-hearted/) - This was the message from Adrian Marlowe, MD of the recruitment law and compliance specialist Lawspeed, whilst speaking at the Recruitment International compliance conference in London on 8th March. Explaining the issues Marlowe said “from 6th April HMRC will be using a double test in order to crack down on the use of tax relief - [Conduct Regulations changes announced](https://www.lawspeed.com/conduct-regulations-changes-announced/) - The government has responded to its latest consultation on the Conduct of Employment Agencies and Employment Business Regulations 2003, announcing its proposals for change and confirming once again that job boards will not be excluded. New regulations have been published which will include an extension of the requirement to advertise in Great Britain as well - [Holiday pay and commission – still up in the air?](https://www.lawspeed.com/holiday-pay-and-commission-still-up-in-the-air/) - Following the decision in Lock v British Gas, it is now an established principle that commission should be taken into account in calculating the amount that an employee should receive whilst on holiday. Commission would usually relate to an earlier period and therefore be paid whilst an employee is on holiday, but how do we - [Are you prepared for the National Living Wage?](https://www.lawspeed.com/are-you-prepared-for-the-national-living-wage/) - On 1st April 2016 the government’s new mandatory National Living Wage of £7.20 per hour for workers aged 25 and above will become law. Paying a worker less than the National Living Wage will be a breach of National Minimum Wage (“NMW”) legislation which could lead to fines and/or an organisation being named and shamed - [You’re fired! – minor misconduct accumulation or just acting on managerial gut feeling?](https://www.lawspeed.com/youre-fired-minor-misconduct-accumulation-or-just-acting-on-managerial-gut-feeling/) - Long gone are the days when your boss could, completely out of the blue, walk up to your desk and shout ‘You’re fired!’…or are they? The Employment Appeal Tribunal (‘EAT’) recently considered the issue whether a series of relatively minor acts of misconduct can be “aggregated” to justify a fair dismissal without any prior warning. - [New penalties for failure to pay tribunal awards to be introduced in April 2016](https://www.lawspeed.com/new-penalties-for-failure-to-pay-tribunal-awards-to-be-introduced-in-april-2016/) - From April 2016 organisations that fail to pay tribunal awards or settlement amounts can be subject to financial penalties. The legislation which allows these penalties has already been passed, and following a specific parliamentary question, an intended implementation date of April 2016 has been confirmed. Individuals who settle claims or who are awarded amounts by - [Is it discriminatory to ask an employee to speak English at work?](https://www.lawspeed.com/is-it-discriminatory-to-ask-an-employee-to-speak-english-at-work/) - No, provided that the reason why the request is being made is not due to the employee’s race, which includes colour, nationality, ethnic or national origins. In the recent case of Kelly v Covance Laboratories Ltd, the Claimant, who is of Russian origin, was asked by her employer to speak in English rather than in - [Employers should be aware of the dangers when giving a negative reference](https://www.lawspeed.com/employers-should-be-aware-of-the-dangers-when-giving-a-negative-reference/) - A recent case reminds employers of the need to be careful in both giving of references and agreeing references as part of settlement agreements. In Pnaiser v NHS England and Coventry City Council, the Employment Appeal Tribunal considered whether the giving of a verbal reference which implied that the claimant had a poor sickness record, - [More protection for employees and workers on zero hours contracts](https://www.lawspeed.com/more-protection-for-employees-and-workers-on-zero-hours-contracts/) - From January 11th 2016, employees and workers on zero hours contracts have a right to complain to an employment tribunal if they are dismissed or suffer detriment as a result of working for someone else in breach of an exclusivity clause. Since May 2015, these clauses have been unenforceable and now, with the new measures, - [Discrimination Update](https://www.lawspeed.com/discrimination-update/) - Long term absence and disability discrimination Disability discrimination is one of the most complex areas of employment law and employers are ill advised to move to dismissal prematurely. In a recent case the Employment Appeal Tribunal (EAT) held that an employment tribunal (ET) must consider whether the employer could have been expected to wait a - [Party Season Pitfalls](https://www.lawspeed.com/party-season-pitfalls/) - What to look out for during the festive season’s celebrations With the festive season fast approaching and a number of work-related events planned, a risk management strategy should be employed in advance to ensure that every precaution is taken against possible accidents or claims. As you may already know, company events are deemed to be - [Named and Shamed? – why you should bother with data protection compliance](https://www.lawspeed.com/named-and-shamed-why-you-should-bother-with-data-protection-compliance/) - Data protection issues permeate every organisation and all levels of society, as you may already be aware, anyone who collects ‘personal data’ is a ‘data controller’ for the purposes of the Data Protection Act 1998 (‘DPA’). Under the DPA, the data controller (in this case, you or your business) is required to comply with the - [Some ideas on an alternative tax relief approach](https://www.lawspeed.com/some-ideas-on-an-alternative-tax-relief-approach/) - As we all now know, there was little information within the Autumn Statement ‘blue book’ as to how HMRC will respond to the recent consultation on reforming tax reliefs on travel and subsistence expenses or how PSCs are to be treated following rumours that PSC status will be removed after a short period on contract. - [ARC comments on Autumn Statement 2015: Travel & Subsistence tax reliefs](https://www.lawspeed.com/arc-comments-on-autumn-statement-2015-travel-subsistence-tax-reliefs/) - There was little information within the Autumn Statement ‘blue book’ today as to how HMRC will respond to the recent consultation on reforming tax reliefs on travel and subsistence expenses to a temporary place of work, save that the test for personal service companies will be whether they are caught by IR35. This means - [Was Employment Tribunal result on umbrella company as it was portrayed?](https://www.lawspeed.com/was-employment-tribunal-result-on-umbrella-company-as-it-was-portrayed/) - Last week (w/c 16/11/2015) Lawspeed received a flurry of calls following the publication of a press story by the union UCATT concerning an employment tribunal ‘win’ against an umbrella company by one of its members. Coming so close to the anticipated announcement in the Chancellor’s Autumn Statement as to the future of tax reliefs on travel - [The UK's Energy Saving Opportunity Scheme (ESOS)](https://www.lawspeed.com/the-uks-energy-saving-opportunity-scheme-esos/) - A new mandatory energy assessment and saving scheme has been introduced by the ESOS Regulations 2014 which applies to any ‘large undertaking’ in the UK. This is known as the Energy Savings Opportunity Scheme ‘ESOS’ and requires qualifying organisations to have an audit carried out. The audit should identify areas of energy conservation saving which - [ICO clamp down on data protection](https://www.lawspeed.com/ico-clamp-down-on-data-protection/) - The Information Commissioners Office (ICO) has recently launched a campaign to clamp down on employment agencies who are not registered under the Data Protection Act 1998. Employment and recruitment agencies will inevitably hold personal details on file for clients and candidates which may include their skill set and work experience, as this information is used - [Employment Law Roundup](https://www.lawspeed.com/employment-law-roundup/) - Employment Law Roundup Cap on redundancy pay under the new Enterprise Act Public sector accounts for 2013/2014 show that £1.8 billion had been paid out in exit payments. A number of “golden parachutes” were in excess of £100,000. To address the implications of dipping into the dwindling public purse, the Enterprise Act seeks to limit - [BIS speaker talks deregulation and standards at Lawspeed seminar](https://www.lawspeed.com/bis-speaker-talks-deregulation-and-standards-at-lawspeed-seminar/) - In the second part of its combined tax debate and seminar event held on 23rd September, Lawspeed welcomed a senior civil servant from the department of Business, Innovation and Skills to talk about BIS’ stance on government regulation and standards. “We felt that our attendees would want to have some insight into the direction the - [Holiday Pay and Commission](https://www.lawspeed.com/holiday-pay-and-commission/) - In May 2014, the European Court of Justice clarified that if workers are paid commission as part of their remuneration, commission must be included when calculating holiday pay (see Lock v British Gas). This was confirmed by the Employment Tribunal (ET) during a two day hearing in February this year. However, the ET decision did - [Summary of key articles for October 2015](https://www.lawspeed.com/summary-of-key-articles-for-october-2015/) - National Minimum Wage increase From Thursday 1st October 2015, the adult rate of the National Minimum Wage (‘NMW’) has risen from £6.50 to £6.70 per hour, a rise of 20 pence. The following NMW rates apply: The rate for 18 to 20 years olds has increased by 17 pence to £5.30 per hour The rate - [Requirement for public sector workers to speak 'fluent English'](https://www.lawspeed.com/requirement-for-public-sector-workers-to-speak-fluent-english/) - The Immigration Bill, which was published on 17th September 2015, introduced a new legal requirement for all public sector employees who work in a public-facing role to speak ‘fluent English’. This will include social workers, police officers, teaching staff and assistants, Jobcentre Plus workers and local government employees. The recent requirement will apply to both - [100% think proposed changes to travel and subsistence relief will be detrimental](https://www.lawspeed.com/100-think-proposed-changes-to-travel-and-subsistence-relief-will-be-detrimental/) - “Could HMRC proposals affect the flexible workforce?” was the topic of the debate at a meeting held by the Association of Recruitment Consultancies (ARC) on 23rd September in London, and on a show of hands every attendee thought it would. The debate, attended by two speakers from HMRC, a Treasury representative, and speakers from the - [On the clock - travelling to and from work](https://www.lawspeed.com/on-the-clock-travelling-to-and-from-work/) - Earlier this year the Advocate General recommended that travel time to the first customer and from the last customer is to be considered “working time” for mobile workers. The Court of Justice of the European Union (“CJEU”) has now brought this non-binding recommendation into law. (Click here for those who would like to refresh their - [Social Media (Ab)use](https://www.lawspeed.com/social-media-abuse/) - Social media is an increasingly popular and growing area due to the number of benefits it offers to businesses, ranging from the ability to communicate with a wide audience, to using it for recruitment purposes. Recent case law demonstrates the importance to employers of having a clear social media policy in place, to ensure that - [The (LinkedIn) Battle of Britain](https://www.lawspeed.com/the-linkedin-battle-of-britain/) - Connecting with clients on social media has a number of attractive benefits for a business. Statistics from Twitter suggest that 24% of job seekers form negative opinions of companies that do not have a social media presence. Luddites may be shaking their heads but the statistics speak for themselves: On Saturday 4th August 2015 a - [Court of Appeal dismisses Unison’s third tribunal fees challenge](https://www.lawspeed.com/court-of-appeal-dismisses-unisons-third-tribunal-fees-challenge/) - The trade union Unison has lost its third challenge of the legality of the introduction of fees in the Employment Tribunal (ET) and Employment Appeal Tribunal (EAT). The fees for bringing employment claims came into force on 29th July 2013. Under this fee regime, depending on which employment legislation has allegedly been breached, claimants have - [Could you ask David Beckham to accompany you to an investigation meeting?](https://www.lawspeed.com/could-you-ask-david-beckham-to-accompany-you-to-an-investigation-meeting/) - Running any internal procedures could be very stressful for all parties involved, be it for investigation, disciplinary, grievance, sickness absence or performance management purposes. Even if the employer has solid evidence and good reason for subjecting employees to a formal procedure, employees can feel targeted and suspicious of perceived ulterior motives of the employer. A - [Can Facebook whinging get you sacked?](https://www.lawspeed.com/can-facebook-whinging-get-you-sacked/) - We have all seen Facebook posts in our newsfeeds that would make even the most jaded of us cringe. Facebook has been around for nearly a decade and even though we have caught on to privacy settings and scrutinising pictures and post tags, there is still a lot of published material out there. If that - [Do travel expenses constitute a salary sacrifice?](https://www.lawspeed.com/do-travel-expenses-constitute-a-salary-sacrifice/) - This issue was discussed in the recent case of Reed Employment v HMRC at the Court of Appeal. Reed is an employment business which employs its temporary workers. Prior to 1998, there was no available tax relief on a worker’s travel expenses to a temporary place of work and Reed paid its employed temps - [No requirement to give temporary workers preference during recruitment](https://www.lawspeed.com/no-requirement-to-give-temporary-workers-preference-during-recruitment/) - In the case of Coles v Ministry of Defence, the Employment Appeal Tribunal (‘EAT’) had to consider whether the right under R.13 of the Agency Worker Regulations 2010 (‘AWR’) for agency workers to be informed of any relevant vacant post with the hirer extends to a requirement to offer the agency worker more favourable treatment - [Termination payments revisited](https://www.lawspeed.com/termination-payments-revisited/) - Following a review of termination payments by the Office of Tax Simplifications in 2014, which concluded that the current system is both confusing and uncertain, the government has published a consultation on this area. More often than not employers want to pay the correct amount of tax but simply can’t get to grips with the - [BIS to speak at compliance seminar, combined with ARC debate on proposed tax changes](https://www.lawspeed.com/bis-to-speak-at-compliance-seminar-combined-with-arc-debate-on-proposed-tax-changes/) - Lawspeed is pleased to announce that a representative from BIS will speak at its innovative compliance seminar, to be held on the 23rd September in London. This seminar is aimed at business owners and senior managers, and will address tax, compliance, post-termination restrictions and social media issues currently affecting recruitment businesses and other sector operators. - [ARC delighted other trade associations support RPO ‘pay when paid’ campaign](https://www.lawspeed.com/arc-delighted-other-trade-associations-support-rpo-pay-when-paid-campaign/) - Commenting on an article in Recruiter magazine on 28th July (“Recruitment bodies welcome new Small Business Czar”), Adrian Marlowe, Chairman of the Association of Recruitment Consultancies (ARC) said “We identified ‘pay when paid’ and other related unfair payment clauses in RPO contracts as an issue that government urgently needed to address back in 2011 against - [ARC supports latest government initiative for a small business commissioner](https://www.lawspeed.com/arc-supports-latest-government-initiative-for-a-small-business-commissioner/) - The government’s latest initiative to appoint a small business commissioner to help with payment terms and disputes between small businesses and their larger customers is to be welcomed, says the Association of Recruitment Consultancies (ARC). “Any help that can be given to smaller businesses that suffer through late payment must be a good thing and - [Carrying over holiday accrued during sick leave - not as detrimental as it sounds](https://www.lawspeed.com/carrying-over-holiday-accrued-during-sick-leave-not-as-detrimental-as-it-sounds/) - Businesses have adapted to the ECJ decisions in the conjoined cases of Stringer and Schultz-Hoff resulting in employees accruing holiday when they are on sick leave. The sometimes substantial amounts of holiday accrued (but not yet taken) because the employee has been on long-term sick leave (due to for instance cancer or HIV) is usually - [Select Committee inquiry into Employment Tribunal Fees](https://www.lawspeed.com/select-committee-inquiry-into-employment-tribunal-fees/) - The Commons Select Committee has decided to launch an inquiry into the effects of the introduction and levels of the tribunal fees and charges. The Commons Select Committee inquiry is separate from the Ministry of Justice’s (MOJ) review. The differences from the MOJ reviews are that this new inquiry is taking evidence from external bodies, - [Ban on only advertising jobs overseas](https://www.lawspeed.com/ban-on-only-advertising-jobs-overseas/) - The government has now implemented provisions to curb only advertising UK based jobs overseas. The insertion of Regulation 27A of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (‘Conduct Regulations’) means that if you are advertising jobs abroad, you also have to place adverts in English in the UK. It may seem like - [ARC supports the government’s initiative on strike action](https://www.lawspeed.com/arc-supports-the-governments-initiative-on-strike-action/) - On 15th July the government announced a consultation to abolish the rules that prohibit an employment business from replacing a worker on strike. The plan appears to be to enable employers to use agency workers whenever a strike is in operation, whether to replace a striking worker or to fill a position of someone who - [Below are the ‘headlines’ for recruiters from the Chancellor’s summer budget 2015](https://www.lawspeed.com/below-are-the-headlines-for-recruiters-from-the-chancellors-summer-budget-2015/) - 1. The government will continue to clamp down on tax avoidance, planning and evasion, as well as increasing resources for HM Revenue and Customs (HMRC) so they can make sure people pay the tax that are due. This includes: extra investment between now and 2020 for HMRC’s work on evasion and non-compliance tripling the number - [New ACAS guidance on how to calculate holiday pay](https://www.lawspeed.com/new-acas-guidance-on-how-to-calculate-holiday-pay/) - In light of the recent case law, ACAS has published updated guidance on calculating holiday pay. The new guidance is aimed at employees but is useful to employers also, as it confirms that employees could have a claim where they believe their employer failed to take into account ALL elements of pay normally received, e.g. - [Case from Northern Ireland considers voluntary overtime and holiday pay](https://www.lawspeed.com/case-from-northern-ireland-considers-voluntary-overtime-and-holiday-pay/) - The Court of Appeal in Northern Ireland delivered its judgment on whether employers should take into account voluntary overtime when calculating holiday pay in Patterson v Castlereagh Borough Council. ‘Voluntary overtime’ refers to situations in which the employee is not under an obligation to work overtime and the employer is not obliged to offer any - [Could travel time to and from an assignment be considered ‘work time’?](https://www.lawspeed.com/could-travel-time-to-and-from-an-assignment-be-considered-work-time/) - This question is discussed in the Federación de Servicios Privados del Sindicato Comisiones Obreras case brought before the European Court of Justice (ECJ). The claimants in this case worked as technicians for two security system installation and maintenance companies in Spain. Whilst the companies’ main offices were based in Madrid, the claimants were assigned to - [Is a contractor an employee?](https://www.lawspeed.com/is-a-contractor-an-employee/) - This question was considered in the recent case of Suhail v Barking Havering & Redbridge NHS Trust. Mr Suhail (the claimant) worked as a GP for Rotherham Primary Care. Additionally, from time to time he provided services to Redbridge NHS Trust through a Cooperative (PELC). He was described as “self-employed” and paid gross (without deduction - [Key employment changes in 2015](https://www.lawspeed.com/key-employment-changes-in-2015/) - The government has announced some key changes which will be implemented by the end of this year and which will have an impact on employment: The Fit for Work service which is aimed at assisting employers and employees to manage long term absences from work is currently only available in Sheffield and the area of - [Businesses face the growing threat of cyber security breaches](https://www.lawspeed.com/businesses-face-the-growing-threat-of-cyber-security-breaches/) - Businesses should be made aware of the growing threat of cyber security breaches. A survey on behalf of the government indicated that 90% of big businesses experienced some form of cyber security breach in 2015, compared to 81% in the previous year. Moreover, the cost of security breaches continue to soar, as in the most - [Brief summary of the Queen's speech](https://www.lawspeed.com/brief-summary-of-the-queens-speech/) - Parliament was officially opened with HM the Queen delivering her speech on 27th May, outlining the new government’s legislative agenda for the coming year. David Cameron pledged to “create two million more jobs” over the course of the next 5 years, in order to achieve “full employment”, where there would be “a job for everyone - [Changes to legislation regarding zero-hours contracts](https://www.lawspeed.com/changes-to-legislation-regarding-zero-hours-contracts/) - One of the final pieces of legislation introduced by the last coalition government was a prohibition on exclusivity clauses in zero-hours contracts. This has now become law (from 27 May 2015) within section 153 of the Small Business, Enterprise and Employment Act 2015. Whilst the ban on exclusivity clauses will have an impact on many - [Changes to Driving Licence Regulations](https://www.lawspeed.com/changes-to-driving-licence-regulations/) - DVLA has announced that the paper counterpart of the photocard driving licence which displays information regarding the driver’s endorsement/penalty points will no longer be valid from 8th June 2015. This change is expected to affect agencies who supply drivers, as they would need to consider new ways of checking the validity of the drivers’ licences. - [Jinadu v Dockland Buses: How do disciplinary and grievance processes interact when raised simultaneously?](https://www.lawspeed.com/jinadu-v-dockland-buses-how-do-disciplinary-and-grievance-processes-interact-when-raised-simultaneously/) - In a recent decision the Employment Appeal Tribunal addressed the matter of whether disciplinary processes must be put on hold pending the outcome of grievances raised at the same time as disciplinary matters. For background information, in the case of Jinadu v Docklands Buses, the employee bus driver was dismissed for gross misconduct because she - [Wearable Technology in the Workplace](https://www.lawspeed.com/wearable-technology-in-the-workplace/) - The use of wearable technology in the workplace is becoming increasingly popular and a number of surveys suggest that the use of such technology could provide certain benefits to employees, such as increasing productivity. Some employers consider that the introduction of new wearable technology will enable employees to work hands-free whilst still receiving information relating - [Further developments for holiday pay and commission: Lock decision is being appealed](https://www.lawspeed.com/further-developments-for-holiday-pay-and-commission-lock-decision-is-being-appealed/) - Many of you will know that the issue of holiday pay and commission is a complicated and seemingly ever –changing area of law. The recent Employment Tribunal decision in Lock v British Gas, left employers with uncertainty. In essence the decision meant that commission ought to be included in holiday pay, as long as it - [Adecco Tax Case](https://www.lawspeed.com/adecco-tax-case/) - The Adecco tax case has been listed for hearing between 11 and 15 May 2015 at the first tier Tax Tribunal. This case takes forward similar arguments to those raised in the Reed case which challenged HMRC's position that VAT was due on all payments received by an employment business from its clients/hirers. Following the - [Driving under the influence of drugs](https://www.lawspeed.com/driving-under-the-influence-of-drugs/) - Recent changes to driving legislation are a reminder that employers should have policies in place to address drink-driving and drug-driving laws,and provisions which deal with the disciplinary procedure which should be followed if an employee commits a driving offence. From 2nd March 2015 it is a criminal offence to drive (or attempt to drive) a - [Bankruptcy Reforms](https://www.lawspeed.com/bankruptcy-reforms/) - The government announced before the dissolution of parliament for the general election, that it would increase the threshold for bringing a bankruptcy petition from £750 to £5,000. This means that if a person’s liabilities are less than £5,000, it would not be possible to recover the sums owned by that individual by the way of - [Is there a contract of employment between an agency worker and a client?](https://www.lawspeed.com/is-there-a-contract-of-employment-between-an-agency-worker-and-a-client/) - This question was revisited by the Court of Appeal in Smith v Carillion. This issue arises when a worker is supplied by an employment business and brings a claim that he or she is an employee of the client. The Appellant in Smith worked in the construction industry for over 20 years. He was supplied - [In whistleblowing cases – what is the meaning of “public interest”?](https://www.lawspeed.com/in-whistleblowing-cases-what-is-the-meaning-of-public-interest/) - “Whistleblowing” is a term used to identify situations in which an employee reports a suspected wrongdoing at the workplace, such as health and safety concerns. As a result of this, the employee makes a “protected disclosure” as defined under the relevant whistleblowing legislation (the Public Interest Disclosure Act 1998 and the Enterprise and Regulatory Reform - [Holiday pay must include commission following ET’s decision in Lock v British Gas](https://www.lawspeed.com/holiday-pay-must-include-commission-following-ets-decision-in-lock-v-british-gas/) - The employment tribunal has delivered the long anticipated decision on calculating holiday pay in Lock v British Gas. Mr Lock was a sales consultant whose salary included a basic element and commission. Around 60% of his income was made up of commission, paid in arrears and calculated on the number of sales achieved by - [National Insurance Contributions to be abolished for under 21’s](https://www.lawspeed.com/national-insurance-contributions-to-be-abolished-for-under-21s/) - George Osbourne announced in the 2015 Budget that from 6th April 2015 National Insurance Contributions for employees under the age of 21 will be abolished, with the exception of those earning more than £42,285 a year. It is estimated that employers will save £500 per year for an employee under the age of 21 who - [PSC tax rules are once again in the spotlight](https://www.lawspeed.com/psc-tax-rules-are-once-again-in-the-spotlight/) - Last week it was announced that two government departments have received fines amounting to £1.5 million pounds for breaching the off-payroll contract rules. The breach that gave rise to the Ministry of Defence’s fine was due to failing to seek assurance from a number of workers on their tax arrangements as a result of an - [Shared Parental Leave and pay overview: the birth of a new scheme](https://www.lawspeed.com/shared-parental-leave-and-pay-overview-the-birth-of-a-new-scheme/) - Shared Parental Leave (SPL) is a paid family friendly leave that mothers and their spouses/partners may take when the baby is due on or after 5th April 2015. The idea is to give parents a choice in how to look after their offspring during the first year of life. As a result, assuming eligibility criteria - [Changes to disciplinary and grievance processes: employers must accept workers’ choice of companion](https://www.lawspeed.com/changes-to-disciplinary-and-grievance-processes-employers-must-accept-workers-choice-of-companion/) - Employees have the right to be accompanied by specific companions to meetings, where that meeting could result in formal warnings and disciplinary actions. Until recently the companion chosen by the employee was subject to a test of reasonableness and, further, employers could refuse the presence of certain companions. This meant that, where there was a - [Restictive covenants: how can employers assess their losses?](https://www.lawspeed.com/restictive-covenants-how-can-employers-assess-their-losses/) - How much should employers expect to recover when an employee leaves the company, breaches contractual restrictive covenants and, for example, solicits clients, poaches staff, uses confidential information or joins a competitor? Typically, a degree of secrecy will be involved and the breach may not become apparent for some time after the event. Consequently, it can - [Record keeping & reporting requirements for intermediaries](https://www.lawspeed.com/record-keeping-reporting-requirements-for-intermediaries/) - Towards the end of last year HMRC published a consultation on the quarterly reporting obligations arising from the amendments to the agencies tax legislation introduced by the Finance Act 2014. Consequently, where an intermediary has a contract with the hirer to provide an individual’s services, the intermediary must provide HMRC with specific details relating to - [No TUPE protection for umbrella contractors?](https://www.lawspeed.com/no-tupe-protection-for-umbrella-contractors/) - An Employment Appeal Tribunal (EAT) ruling on whether the Transfer of Undertakings Protection of Employment Regulations 2006 (TUPE) applied to a given set of facts raises some interesting questions as to whether the legislation could actually apply, and protect, an umbrella company contractor, ie: an employee of the umbrella working for a third party hirer. - [Unlawful deduction claims limited to two years under new Regulations](https://www.lawspeed.com/unlawful-deduction-claims-limited-to-two-years-under-new-regulations/) - In force from 8th January 2015, the government has introduced the Deduction from Wages (Limitation) Regulations 2014 which: (1) limit all unlawful deduction claims to the period of two years before the date that a claim form is lodged; and, (2) explicitly state that the right to paid holiday is not incorporated as a term - [Ban on non-UK recruitment vacancy advertising](https://www.lawspeed.com/ban-on-non-uk-recruitment-vacancy-advertising/) - From the 5th January 2015 a vacant position in Great Britain may not be advertised overseas unless it has been advertised, in English, in Great Britain at the same time as it is advertised in the European Economic Area (EEA) or for at least 28 days in English, in Great Britain before being advertised in - [ECJ rule that obesity is a disability](https://www.lawspeed.com/ecj-rule-that-obesity-is-a-disability/) - Yesterday, the European Court of Justice (ECJ) ruled that obesity, unlike sex, race or age, is not in itself a characteristic which attracts the protection of discrimination laws. However, if severe enough, it could be a type of disability which is protected. This could be the case even where there is no medical condition related - [Employment tribunal fees challenged in the High Court by trade union ‘Unison’](https://www.lawspeed.com/employment-tribunal-fees-challenged-in-the-high-court-by-trade-union-unison/) - The costs associated with employment tribunals and any appeals were previously the responsibility of the taxpayer, this was the position until the 29 July 2013 when the Government introduced fees for such claims made to the employment tribunal. This fee scheme was recently brought to the High Court in application for judicial review. The trade - [Which employment cases are waiting in the wings for 2015?](https://www.lawspeed.com/which-employment-cases-are-waiting-in-the-wings-for-2015/) - Here we round up some of the significant employment law decisions expected in 2015, including legal cases pending on the calculation of holiday pay and the interpretation of the AWR. Other notable employment judgments expected in 2015 cover: adjustments for disabled people; the meaning of disability; caste discrimination; age discrimination in retirement; equal pay and - [Conduct Regulations Announcement](https://www.lawspeed.com/conduct-regulations-announcement/) - BIS has announced that the anticipated consultation on changes to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 will not be published until the New Year to ensure that there is sufficient time for the consultation to take place (8 to 12 weeks). As a result any changes will be implemented in the - [EAT sets out further conditions where leave may be carried over](https://www.lawspeed.com/eat-sets-out-further-conditions-where-leave-may-be-carried-over/) - Hot on the heels of the Employment Appeal Tribunal (EAT) ruling that means compulsory overtime must be included in holiday pay calculations when considering ‘normal remuneration’, a second decision has extended the principle relating to the conditions under which a worker is entitled to carry leave over into the following leave year. The Court of - [ARC steps up campaign on false self-employment rules](https://www.lawspeed.com/arc-steps-up-campaign-on-false-self-employment-rules/) - Whilst there recently have been a number of complaints about HMRC’s proposed reporting obligations under the new Agencies Tax legislation, the Association of Recruitment Consultancies (ARC) believes the better target for these complaints would be the inherent unfairness within the legislation itself. This unfairness is a subject that ARC has addressed in a campaign launched - [Do you have commercially strong terms in place? A lesson from case law](https://www.lawspeed.com/do-you-have-commercially-strong-terms-in-place-a-lesson-from-case-law/) - The outcome of the case Mploy Group Ltd v Denso Manufacturing UK Ltd reminds employment businesses of the importance of having strong terms in place which are compliant with key legislative requirements and that cover off commercial interests. Mploy Group Ltd “MGL” an employment business, had supplied workers to Denso Manufacturing UK Ltd “DMUK”. DMUK - [Response to consultation on advertising jobs abroad is announced](https://www.lawspeed.com/response-to-consultation-on-advertising-jobs-abroad-is-announced/) - As expected the government plans to proceed with the new regulation to ensure that employment agencies and businesses should have to advertise jobs locally if they also intend to advertise for foreign workers to work in UK jobs. The new requirement, which the government hopes to bring into force by the end of this year, - [EAT Ruling: Holiday Pay and Overtime](https://www.lawspeed.com/eat-ruling-holiday-pay-and-overtime/) - The Employment Appeal Tribunal (EAT) has published its judgment in three cases as to whether holiday pay need take into account non-guaranteed or voluntary overtime. The EAT ruled that it should. Although the ruling is likely to be appealed, it paves the way for multiple claims for unpaid holiday pay, with government estimates that this could - [HMRC Business Entity Tests scrapped, but what follows?](https://www.lawspeed.com/hmrc-business-entity-tests-scrapped-but-what-follows/) - Responding to news that the HMRC ‘Business Entity Tests’ for the tax rules known as IR35 are to be scrapped, Theresa Mimnagh, of the compliance and recruitment law specialist Lawspeed, said “the test was always surprising as it looked at the contractor’s business rather than the relationship with the hirer, and IR35 is a tax - [Are standards important?](https://www.lawspeed.com/are-standards-important/) - Attendeesin a packed room at the Recruitment EXPO in Birmingham gave a 100% yes inresponse to the perennial question, “Are standards important to the recruitmentindustry?”. Tothose outside the industry, it may come as a surprise, especially when thegovernment is set on reducing the regulation of agencies, with furtherannouncements expected this month. Ina £25bn per annum - [More than £10K awarded to agency worker in AWR tribunal ruling](https://www.lawspeed.com/more-than-10k-awarded-to-agency-worker-in-awr-tribunal-ruling/) - An employment tribunal has awarded an agency worker in excess of £10,000 for a breach of equal pay rights (R.5 & R.6 Agency Workers Regulations 2010), namely to be paid what she would have received had she been recruited directly by the hirer upon completion of the requisite 12 week qualifying period. It concerned a - [New right to work checks do not apply to many recruitment businesses](https://www.lawspeed.com/new-right-to-work-checks-do-not-apply-to-many-recruitment-businesses/) - Immigration is back in the headlines and closely linked to this is the right to work in the UK. To identify people genuinely entitled to work here from those that may not be, this year in May and July the government issued a raft of guidance notes and codes on the steps that need - [Lawspeed to speak at ARC event](https://www.lawspeed.com/lawspeed-to-speak-at-arc-event/) - Adrian Marlowe, MD Lawspeed, will be speaking at a forthcoming workshop hosted by The Association of Recruitment Consultancies (ARC) along side Tim Young, Business Advisory Partner at Baker Tilly and Steven Raize, Corporate Partner at DAC Beachcroft LLP. Suitable for anyone looking to raise funds or planning to exit their recruitment company, this is an - [New restriction on advertising vacancies overseas](https://www.lawspeed.com/new-restriction-on-advertising-vacancies-overseas/) - The Department of BIS has announced a proposal for a new regulation to prevent recruiters from advertising vacancies within the EEA unless they have also been advertised in English in Great Britain. The new regulation would be included within the revised Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“Conduct Regs”) and would not - [False Self-Employment: What is control?](https://www.lawspeed.com/false-self-employment-what-is-control/) - A recent tax tribunal case has shed some light on how the control test in the new ‘false self-employment’ legislation, which applies from April 2014, may be interpreted by the courts. This legislation amended is known as ‘the agencies tax legislation’. The issue concerned security guards who were supplied by a business to guard construction - [Ban on exclusivity clauses in zero hours contracts – level playing field for recruiters](https://www.lawspeed.com/ban-on-exclusivity-clauses-in-zero-hours-contracts-level-playing-field-for-recruiters/) - Vince Cable has today announced proposals to bring into law a ban on exclusivity clauses within zero hours arrangements. The target being employers who engage a person on a zero hours contract with no guarantee of work, yet also require workers to be available by restricting individuals from taking up other roles whilst employed. The - [Important changes to flexible working](https://www.lawspeed.com/important-changes-to-flexible-working/) - Don’t fancy working Mondays anymore? Want to work at home, work compact hours or change shift patterns? From 30th June 2014, the right of an employee to request flexible working will be extended. Prior to this date, the right existed only for parents and carers and was largely used to accommodate childcare arrangements. However, it - [Holiday Pay: Commission ruling leads to confusion](https://www.lawspeed.com/holiday-pay-commission-ruling-leads-to-confusion/) - The latest European Court of Justice (ECJ) judgment on holiday pay has caused shockwaves amongst employment lawyers assessing the likely impact and implications. The recruitment sector is likely to be one of many industries that are directly affected by the decision. In Lock v British Gas Trading it was ruled that the commission element of - [ARC welcomes the government review into late payment, but says more must be done](https://www.lawspeed.com/arc-welcomes-the-government-review-into-late-payment-but-says-more-must-be-done/) - Following the consultation into payment terms last year ‘Building a responsible payment culture’ business secretary Vince Cable proposed last week that large companies will be required to publish information about their payment practices. The review into this area and the idea that companies should be named and shamed is to be welcomed, says the Association - [New self employment tax law under fire](https://www.lawspeed.com/new-self-employment-tax-law-under-fire/) - At a seminar held by the recruitment law specialist Lawspeed on 15th April in London, the new rules commonly known as ‘the agency tax legislation’, which follow the government consultation ‘onshore intermediaries – false self employment’ came under fire from a packed audience. “What is in no doubt”, explained Adrian Marlowe, MD of Lawspeed which - [ARC says the announcement on the GLA shift signals imminent proposals to change agency regulations](https://www.lawspeed.com/arc-says-the-announcement-on-the-gla-shift-signals-imminent-proposals-to-change-agency-regulations/) - In an early move in respect of the long awaited amendments to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“Agency Regulations”) the government yesterday announced an amendment to the advertising rule and that a further consultation will be issued shortly. The advertising rule is to be changed to force agencies only recruiting from abroad - [Lawspeed warns agencies against paying workers gross](https://www.lawspeed.com/lawspeed-warns-agencies-against-paying-workers-gross/) - The new ‘false self employment’ tax legislation applies from 6th April 2014 with no exceptions, leaving those agencies that have arrangements to pay their contractors gross at risk from that date, warns the recruitment law and compliance specialist Lawspeed. Adrian Marlowe, managing director of Lawspeed, explained: “Recruitment agencies contracting directly with hirers are liable for - [New rules on false self employment released. To hear an analysis on these critical developments, join us and HMRC on 15th April](https://www.lawspeed.com/new-rules-on-false-self-employment-released-to-hear-an-analysis-on-these-critical-developments-join-us-and-hmrc-on-15th-april/) - The government yesterday published the draft Finance (No.2) Bill containing the proposed legislation relating to the future treatment of tax for onshore self-employed contractors. The wording of the operative sections has been amended and provisions relating to the liability of those involved set out. We will be undertaking an analysis of the bill and will - [Lawspeed at “Recruitment Agency Expo” in London next week](https://www.lawspeed.com/lawspeed-at-recruitment-agency-expo-in-london-next-week/) - Lawspeed, the recruitment law and compliance specialists, are exhibiting at next week’s “Recruitment Agency Expo” and invite you to visit us at the show. The Expo, taking place at Olympia, London on 25th and 26th February offers recruitment professionals a great opportunity to gather information and grow their knowledge of the latest developments in the - [Unintended consequences of new tax proposals on self employment could be considerable](https://www.lawspeed.com/unintended-consequences-of-new-tax-proposals-on-self-employment-could-be-considerable/) - At a seminar held by the recruitment law specialist Lawspeed (legal partners to the Association of Recruitment Consultancies (ARC)) on Wednesday 22nd January a number of problematic key points arising from the government Consultation on Onshore Intermediaries -False Self Employment were identified. Speaking to a packed audience of recruitment agencies, umbrella companies, CIS contractors and - [“In this world nothing can be said to be certain, except death and taxes”](https://www.lawspeed.com/in-this-world-nothing-can-be-said-to-be-certain-except-death-and-taxes/) - Today, 9th January 2014, marks the anniversary of the first introduction of income tax in the UK. In his budget of 1798 William Pitt the Younger proposed a graduated income tax to pay for weapons and equipment in preparation for the Napoleonic Wars, it was introduced on this day in 1799. Starting at a rate - [HMRC to speak at London seminar 22nd January re contractor tax and false self employment](https://www.lawspeed.com/hmrc-to-speak-at-london-seminar-22nd-january-re-contractor-tax-and-false-self-employment/) - Lawspeed is pleased to announce that HMRC officials will be speaking on the consultation ‘Onshore Employment Intermediaries - False Self Employment’ at its forthcoming seminar in London on 22nd January 2014. The consultation is set to affect contractor tax including in relation to PSCs and CIS, and will close on 4th February 2014. The seminar - [HMRC publishes guidance for consultation on false self employment](https://www.lawspeed.com/hmrc-publishes-guidance-for-consultation-on-false-self-employment/) - Fast on the heels of the consultation published by HMRC on 10th December called ‘Onshore Employment Intermediaries - False Self Employment’ HMRC has now published guidance linked to this and recent draft Offshore Employment Intermediaries legislation. Adrian Marlowe, Managing Director of Lawspeed, said “The key feature of the consultation and the guidance is a clear - [Agency Worker Regulations have limited scope to many supplied workers](https://www.lawspeed.com/agency-worker-regulations-have-limited-scope-to-many-supplied-workers/) - Everyone knows that the Agency Workers Regulations 2010 (AWR) apply to workers who are temporarily supplied by a temporary work agency to a hirer. No doubt hundreds of hirers have paid higher comparable rates to their agency workers following implementation of these regulations, whilst others have used various methods to avoid paying those rates. But - [Consultation on ‘false self-employment’ set to change contracting landscape - seminar](https://www.lawspeed.com/consultation-on-false-self-employment-set-to-change-contracting-landscape-seminar/) - On 10th December 2013 the government published a consultation document relating to the future treatment of tax for onshore contractors. Whilst the industry will comment on and analyse the proposals over the coming weeks, it is clear that the changes proposed by the ‘Onshore Employment Intermediaries: False self-employment’ consultation would if implemented affect all parties - [Further tax avoidance measures high on the agenda](https://www.lawspeed.com/further-tax-avoidance-measures-high-on-the-agenda/) - Recent reports indicate that the Government sees a close link between success in tackling tax and avoidance and its ability to deliver on other key projects. For example, Sky News has reported an impending government clamp down on tax avoidance by self employed workers, stating that sources have said "the money saved will help plug - [Lawspeed expands the scope of its forthcoming seminar – 27th November 2013 London](https://www.lawspeed.com/lawspeed-expands-the-scope-of-its-forthcoming-seminar-27th-november-2013-london/) - As we prepare for this seminar for agencies and umbrella companies, more and more discussion points emerge justifying a greater range of content. The new agenda will therefore be: • maximising compliance, and protecting fees with today’s technologies, covering contract sign off, pre designed cloud services, and data related issues • more RPOs? Ramifications of - [Top reasons for disputed fees with clients](https://www.lawspeed.com/top-reasons-for-disputed-fees-with-clients/) - Over the 16 years we've been helping recruiters we've seen many excuses put forward by hirers to avoid paying agency fees. Here are the top 3…. 1. The candidate is working in a different role to the one they were put forward for This is a rather unimaginative way to avoid paying for the services - [Keep calm and carry a BYOD policy!](https://www.lawspeed.com/keep-calm-and-carry-a-byod-policy/) - The Information Commissioners Office has issued a warning following a breach of the Data Protection Act 1998 where a member of staff at the Royal Veterinary College lost a camera which contained passport images of six job applicants. Aberdeen City Council received a penalty of £100,000 following a data breach where sensitive information was uploaded - [Protecting your brand from employee social media misuse](https://www.lawspeed.com/protecting-your-brand-from-employee-social-media-misuse/) - There is now an established production line of employees exposed for posting ill thought out tweets or Facebook status updates. The case of Kelly Stone, a recruiter condemned by the public on social media for gloating about stopping individuals’ benefits, is the latest well publicised incident of public disapproval going viral. Whilst this may seem - [Electronic signatures – suitable for recruiters?](https://www.lawspeed.com/electronic-signatures-suitable-for-recruiters/) - Electronic signatures have been hailed as a way for businesses to be more efficient in contract negotiations, by allowing parties to sign documents with speed and certainty. This approach has also been credited with increasing the security of documents and records, which can easily be duplicated and saved in secured locations. In the recruitment industry, - [Does the recent ET decision in Thompson v Paymaster (October 2013) doom the umbrella model?](https://www.lawspeed.com/does-the-recent-et-decision-in-thompson-v-paymaster-october-2013-doom-the-umbrella-model/) - The decision of an Employment Tribunal on 4th October 2013 meant that 6 individuals supplied as agency workers through the umbrella provider Paymaster were neither employees nor workers of Paymaster despite being signed up on written employment contracts, writes Adrian Marlowe of the recruitment and employment law specialist Lawspeed. Paymaster had gone into receivership leaving - [New 'naming and shaming' scheme for NMW rule breakers](https://www.lawspeed.com/new-naming-and-shaming-scheme-for-nmw-rule-breakers/) - Between 2012 to 2013 HMRC identified 736 employers who failed to comply with NMW consequently leading to the recovery of £3.9 million in unpaid wages for over 26, 500 workers. New rules effective from today (1st October, 2013) are targeting these figures. Employers who fail to pay the NMW could forfeit their reputation by being - [Teachers’ strikes in October – how could they impact your business?](https://www.lawspeed.com/teachers-strikes-in-october-how-could-they-impact-your-business/) - Earlier this month the two teaching unions, the NUT and NASUWT, announced dates for regional strikes across England in October. On 1st October the Midlands, Yorkshire and Humberside and Eastern regions are being targeted for action. On 17th October the North East, Cumbria, London, South East and South West will be affected by the strike. - [LinkedIn contacts in High Court case](https://www.lawspeed.com/linkedin-contacts-in-high-court-case/) - Five years ago there was a significant ruling at the High Court concerning the use of LinkedIn contacts where it was found that these had been uploaded to an individual’s personal account they could constitute company property when the employment ceased. (Hays Specialist Recruitment (Holdings) Ltd & Another v Ions & Another [2008]). Since then - [Protect your fees](https://www.lawspeed.com/protect-your-fees/) - What happens if a hirer is unhappy with a contractor you have placed with them and is unwilling to pay for their time spent on assignment? In order for employment businesses to ensure that they receive payments that they are entitled to it is vital that they have correct protection in place. A recent case - [Celebrating Equality and Diversity at work](https://www.lawspeed.com/celebrating-equality-and-diversity-at-work/) - Everyone knows that it is illegal to discriminate in the workplace, directly or indirectly, against anyone on the grounds of; age, sex, disability, religion or belief, pregnancy or maternity, sexual orientation, gender reassignment, marriage and civil partnership or race. But it wasn’t always like this… 1963 Last month people across the world remembered and celebrated - [ARC criticises TUC complaint over the Agency Workers Regulations](https://www.lawspeed.com/arc-criticises-tuc-complaint-over-the-agency-workers-regulations/) - The TUC's latest move in complaining to the EU Commission that the UK implementation of the Agency Workers Regulations (AWR) has not adequately protected agency workers’ rights is 'cynical' says the Association of Recruitment Consultancies (ARC). Adrian Marlowe, chairman of the ARC, said "The AWR came into being after an agreement was reached between the - [Pension auto enrolment hits 1 million landmark](https://www.lawspeed.com/pension-auto-enrolment-hits-1-million-landmark/) - The millionth worker was automatically enrolled onto a workplace pension in July according to the Pensions Regulator. All companies will have to automatically enrol eligible workers (which can include PAYE temps and employed agency workers) into qualifying pension schemes, deduct contributions for workers and make employer contributions on their behalf. The national auto enrolment scheme - [Employers pay out over £200,000 in two unfair dismissal claims](https://www.lawspeed.com/employers-pay-out-over-200000-in-two-unfair-dismissal-claims/) - Two recent unfair dismissal cases demonstrate the danger of not following correct procedure when dismissing employees. Neither business had proper policies in place, neither followed a code of practice when dismissing staff and both paid the price! Theresa Mimnagh, Associate Director at Lawspeed said: “Coincidentally both of these cases relate to the use of Social - [Contract maintenance – protection against risk](https://www.lawspeed.com/contract-maintenance-protection-against-risk/) - Last week Lawspeed delivered updated Agency to Umbrella contracts to scores of recruitment businesses as part of the legal firm’s on-going dedication to protecting clients’ commercial interests. Ravi Murphy, Director at Lawspeed said: “This latest Contract addresses new potential risk and brings greater clarity to the commercial relationships between agencies and their ‘umbrella’ suppliers. It - [Compliance – worth paying for](https://www.lawspeed.com/compliance-worth-paying-for/) - New research shows that firms are spending more time and money on compliance issues than two years ago. Whilst the overall cost increased by 8.5%, the recent survey from the Forum of Private Business (FPB) demonstrates that one thing has not changed in the past two years; taxation compliance remains the single biggest outlay for - [Paternity Leave fit for a Prince](https://www.lawspeed.com/paternity-leave-fit-for-a-prince/) - Following the excitement around the birth of baby George earlier this week, some may have overlooked the fact that Prince William is now entitled to claim paternity leave and receive the princely sum of £136.78 a week. William will be the first member of the Royal Family to take advantage of statutory paternity leave which - [Dismissal – always follow the correct process](https://www.lawspeed.com/dismissal-always-follow-the-correct-process/) - It may seem obvious that if an employee commits an act of serious misconduct, such as theft or assaulting a colleague, then their dismissal would be fair (provided that there is evidence to support the allegation.) However, unfair dismissal laws do not just look at the reason for the dismissal, they also take into account - [Tummy ache, texts and trouble – the wrong way to report sickness absence](https://www.lawspeed.com/tummy-ache-texts-and-trouble-the-wrong-way-to-report-sickness-absence/) - A survey of 2,000 business professionals in the UK has revealed that workers are using a broad range of communication channels, especially when delivering bad news. The research, commissioned by Intercity Telecom, found that 38% of British workers have used email or text to inform their boss that they were sick and unable to work. - [Tax remains taxing for contractors](https://www.lawspeed.com/tax-remains-taxing-for-contractors/) - There is no doubt that the government is determined to reduce tax avoidance. HMRC is clearly upping the ante by increasing the number of specialist investigation teams, looking at both global and national breaches of tax laws. So is it any wonder that most UK contractors running their own limited company say that understanding and - [When is a Final Written Warning not the last word?](https://www.lawspeed.com/when-is-a-final-written-warning-not-the-last-word/) - A recent employment tribunal which reached the Court of Appeal underlined two vital lessons; the importance of proper procedures and the cost and time which employment tribunals can incur. In the long-running case of Davies v Sandwell, a teacher was dismissed by Sandwell Council for minor misconduct whilst on a final written warning relating to - [A year of change ahead](https://www.lawspeed.com/a-year-of-change-ahead/) - The next twelve months will see key changes to the employment landscape, as one-by-one the various measures brought in by the Enterprise and Regulatory Reform Act 2013 become law. The Act represents the biggest shake-up of employment law in a generation. Some commentators have felt that employment regulation has been too much in favour of - [Employment tribunal fees come into force in July](https://www.lawspeed.com/employment-tribunal-fees-come-into-force-in-july/) - Back in May, Lawspeed reported that fees would be implemented for claimants at Employment Tribunals later this summer. We can now confirm that fees for Employment Tribunals (ET) and Employment Appeal Tribunal (EAT) will come into place on Monday 29 July 2013. Adrian Marlowe, MD at Lawspeed said: “The introduction of fees is likely to - [European Court of Justice rules on temporary workers](https://www.lawspeed.com/european-court-of-justice-rules-on-temporary-workers/) - A European Court of Justice (ECJ) ruling has provided useful clarification that EU legislation protecting fixed-term workers does not apply to temporary workers supplied by an employment agency to an end-user organisation. The case (Della Rocca v Poste Italiane SpA, C-290/2012), which originally came before the Naples District Court, concerned a worker supplied on a - [Criminal Record checks - new Update Service](https://www.lawspeed.com/criminal-record-checks-new-update-service/) - A new service aims to save recruiters, employers and candidates time and money when a criminal record check is necessary for particular roles. The checks required for candidates and volunteers who want to work with children or vulnerable adults, (or become driving instructors), are now being carried out by the new Disclosure and Barring Service - [Lawspeed bemused by APSCO umbrella company criticism](https://www.lawspeed.com/lawspeed-bemused-by-apsco-umbrella-company-criticism/) - Recent APSCO criticism of the Lawspeed article “Umbrellas gearing up to compete?” published on 13th May, was surprising, says Lawspeed. In its article “APSCO supports umbrella company members” on 23rd May APSCO has said that its umbrella company members all deny any intent to compete and suggested that the Lawspeed article was both without foundation - [Protect yourself against late payment](https://www.lawspeed.com/protect-yourself-against-late-payment/) - Late payment is an issue which many SME businesses are horribly familiar with and new legislation has recently come into force to help deal with it. The Late Payment of Commercial Debts Regulations 2013 came into force on 16th March 2013, bringing the UK in line with European Union legislation. The regulations affect transactions between - [ARC welcomes APSCO undertaking for umbrella members](https://www.lawspeed.com/arc-welcomes-apsco-undertaking-for-umbrella-members/) - Responding to the article issued by APSCO entitled APSCO Supports Umbrella Company Members published on 22nd May, Adrian Marlowe, Chairman of the Association of Recruitment Consultancies (ARC), said "Lawspeed, as part of its normal day to day business, gave legitimate advice on a live issue of concern for both agencies and umbrella companies. ARC now - [HMRC turns up the heat](https://www.lawspeed.com/hmrc-turns-up-the-heat/) - HM Revenue & Customs (HMRC) is turning up the heat on its Managed Service Company (MSC) investigations, and in articles on Friday 17 and Monday 20 May, Recruiter online reported that HMRC has already achieved results in recovering monies by using the debt transfer provisions in the MSC tax legislation. Friday’s article referred to a - [Help with Real Time Information](https://www.lawspeed.com/help-with-real-time-information/) - HM Revenue & Customs (HMRC) has asked Lawspeed to let our clients and readers know that help is available for payroll departments who may be struggling with the new Real Time Information system. Since 6 April, employers have had to use a new way of reporting PAYE called Real Time Information (RTI) where they report - [Fees introduced for Tribunal claims and appeals](https://www.lawspeed.com/fees-introduced-for-tribunal-claims-and-appeals/) - Fees are expected to be introduced for anyone making a claim or an appeal in Employment Tribunals in new rules expected to come into force in July 2013. The aim is to transfer some of the £84m cost of running the Employment Tribunals from the taxpayer to those who use the system. It is also - [Top tax barrister tumbles at tribunal](https://www.lawspeed.com/top-tax-barrister-tumbles-at-tribunal/) - HMRC won another important legal case last month when Tax QC Rex Bretten, who designed his own tax avoidance scheme, failed in his bid to avoid paying £190,000 in tax. The Exchequer Secretary to the Treasury, David Gauke, said: “This is simply unacceptable and this case serves to highlight the work HMRC is doing to - [Umbrellas gearing up to compete with agencies?](https://www.lawspeed.com/umbrellas-gearing-up-to-compete-with-agencies/) - It has long been a dormant concern of agencies that umbrella companies, those providers that offer ‘tax efficient’ and employment services to contractors, may one day start competing for the very services that agencies offer to their clients. After all, agencies provide them with details of candidates and clients such that the providers are able - [Pensions – auto enrolment progress and changes](https://www.lawspeed.com/pensions-auto-enrolment-progress-and-changes/) - Workplace pensions law has changed and every employer with workers in the UK will be required to help more of their workers save for their retirement. The new rules apply to more and more companies each month and it is important for employers to be aware when their staging date is and begin to put - [A quiet spring – but busier times ahead](https://www.lawspeed.com/a-quiet-spring-but-busier-times-ahead/) - April and October are traditionally the times when employment law changes occur in the UK. However April 2013 saw minimal change but more significant change is scheduled for the summer. April did see the annual increase in statutory payments, with Statutory Sick Pay rising from £85.85 per week to £86.70 and Statutory Maternity, Paternity and - [Recruitment Manager enters The Apprentice](https://www.lawspeed.com/recruitment-manager-enters-the-apprentice/) - Not for the first time a recruitment professional is sitting on the other side of the work-seeking process and undertaking “the world’s toughest job interview” with Lord Alan Sugar. Natalie Panayi, a 30 year old Recruitment Manager from Rickmansworth can be seen alongside fifteen other candidates in the first episode of BBC1’s The Apprentice TV - [Data Protection – Google in hot water](https://www.lawspeed.com/data-protection-google-in-hot-water/) - Google has been fined 145,000 euros (£125,000) for "one of the biggest known data protection violations in history". It follows investigations launched a year ago by the Information Commissioner’s Office (ICO) in the UK and authorities across Europe into Google’s privacy policy which did not provide users with the right to opt out of their - [Guidance on IR35 and the term ‘Office Holders’](https://www.lawspeed.com/guidance-on-ir35-and-the-term-office-holders/) - HM Revenue and Customs (HMRC) has published guidance on how the forthcoming amendment to the IR35 legislation will be implemented, in respect of ‘office holders’. Legal experts, Lawspeed, have argued that the HMRC definition “a position which has an existence independent of the person who holds it and may be filled by successive holders” is - [Conduct Regulations – do you have an effective opt out?](https://www.lawspeed.com/conduct-regulations-do-you-have-an-effective-opt-out/) - As many Employment Agencies (“EA”) and Employment Business (“EB”) are aware, individuals operating through a company can “opt out” of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“Regulations”) by signing a suitable notice. This has various positives for the agency, not the least that the limitations in the Regulations on transfer fee - [Gagging Orders – controversial or a prudent commercial step?](https://www.lawspeed.com/gagging-orders-controversial-or-a-prudent-commercial-step/) - Gagging orders have been in the news throughout 2013 as the Coalition government has sought to limit their use by councils and the NHS, who wish to prevent ‘whistle-blowing’ by former employees. The term “Gagging orders” is somewhat sensationalist but as an employer what can you do if you wish to protect your business and - [National Minimum Wage is increased](https://www.lawspeed.com/national-minimum-wage-is-increased/) - The government has announced that the National Minimum Wage (NMW) for adults is to increase by 12 pence an hour to £6.31, for workers aged 21 and over, in October 2013. At the same time, the NMW for 18 to 20 year olds will go up 5p an hour to £5.03 and the apprentice minimum - [Agency Conduct Regulations: A lesson from history](https://www.lawspeed.com/agency-conduct-regulations-a-lesson-from-history/) - “If it ain’t broke don’t fix it”. That was the view of an agency director at a recent seminar examining the government’s current Consultation into the agency regulatory framework. It is a view echoed by numerous others across the recruitment industry as there seems to be no urgent need or reason to make big changes - [Budget Watch: IR35 tax – “office holders”](https://www.lawspeed.com/budget-watch-ir35-tax-office-holders/) - Last year the Government proposed amendments to the Finance Bill, including extending the IR35 tax rules to ‘office holders’, a move which could have a major impact within the recruitment industry. As the legal partner to the Association of Recruitment Consultancies (ARC), Lawspeed researched the basis for this proposed change. It quickly became apparent that - [Working from home is banned by technology giant](https://www.lawspeed.com/working-from-home-is-banned-by-technology-giant/) - A leaked memo from the head of HR at internet giant Yahoo! has drawn gasps of surprise and a deluge of criticism from entrepreneurs and business leaders from all over the globe. The cause of all the fuss and furore? Yahoo! is banning all staff from remote or teleworking from June this year. The memo - [A brave new world – threats, challenges and opportunities in 2013](https://www.lawspeed.com/a-brave-new-world-threats-challenges-and-opportunities-in-2013/) - Adrian Marlowe, chairman of ARC, delivered a fascinating presentation at the Recruitment Agency Expo in London earlier this week. Challenges in 2013 – a brave new world? examined how 2013 could be the year that pitches big business against the ‘little guy’ and how government proposals for self-regulation of the industry could herald a defining - [ARC to meet BIS at round table](https://www.lawspeed.com/arc-to-meet-bis-at-round-table/) - On Monday 4 March, representatives from the Association of Recruitment Consultancies (ARC) will meet for the first of their stakeholder meetings with senior government policy advisors at the Department for Business, Innovation and Skills (BIS) in London. Adrian Marlowe, Ben Grover, ARC members and members of the ARC committee will meet with Caroline Daly, Senior - [Can Swedish Derogation contracts be offered by Channel Island recruiters?](https://www.lawspeed.com/can-swedish-derogation-contracts-be-offered-by-channel-island-recruiters/) - Questions were asked in the House of Lords recently in order to clarify whether the Swedish derogation model can be operated by recruitment businesses based in the Channel Islands. Lord Laird raised the matter, making particular reference to companies based offshore who employ teachers working in the United Kingdom on Swedish Derogation contracts.* However before - [Workers win AWR Employment Tribunal](https://www.lawspeed.com/workers-win-awr-employment-tribunal/) - More than 150 Barnet Council workers are set to receive compensation, worth hundreds of thousands of pounds, after a decision by an Employment Tribunal on Tuesday (5 February). Just weeks after a much reported tribunal case on the introduction of a Swedish Derogation contract (Bray & Others v Monarch Personnel Refuelling (UK) Limited) this second - [Lawspeed to offer free legal clinics](https://www.lawspeed.com/lawspeed-to-offer-free-legal-clinics/) - Lawspeed, the recruitment and employment law specialists will be offering free one-to-one legal clinics to visitors at the Recruitment Agency Expo 2013. The Expo, taking place at Olympia, London on 26 and 27 February offers recruitment professionals a great opportunity to gather information and grow their knowledge of the latest developments in their industry. The - [Overview: Lawspeed Seminar ─ “IR35 Unplugged”](https://www.lawspeed.com/overview-lawspeed-seminar-─-ir35-unplugged/) - London Chamber of Commerce, Tuesday 22 January 2013 Around 20 delegates braved snowfalls and icy conditions to attend an important seminar about the IR35 tax law and its implications for contractors. Adrian Marlowe, MD, and Ben Grover, Senior Legal Consultant with recruitment law experts Lawspeed, outlined the history, significance and impact of this tricky piece - [Flexible Working for all – blessing or curse?](https://www.lawspeed.com/flexible-working-for-all-blessing-or-curse/) - Flexible Working for all – blessing or curse? Employers may see a considerable increase in requests for flexible working when changes to the law take place in 2014. Currently the right to request flexible working exists in law only for parents or carers. However, in 2010 the Coalition Government promised to extend the right for - [Facebook – the new recruitment tool?](https://www.lawspeed.com/facebook-the-new-recruitment-tool/) - Facebook has demonstrated a new smart search engine (Graph Search) which may eventually challenge LinkedIn as the dominant network used by recruiters and job hunters to establish professional connections. The social media site has long been criticised for failing to live up to its Mission Statement to “make the world more open and connected” due - [Consultation into Agency Conduct Regulations announced](https://www.lawspeed.com/consultation-into-agency-conduct-regulations-announced/) - The government has today announced a consultation into the Conduct of Employment Agencies and Employment Businesses Regulations 2003, otherwise known as the ‘Conduct Regulations’ or ‘Agency Regulations’. The Association of Recruitment Consultancies (ARC) has always lobbied government on behalf of the recruitment industry and has responded quickly to the announcement. The principle aspects under consideration - [Bringing up baby](https://www.lawspeed.com/bringing-up-baby/) - Fathers are expressing a wish to spend more time with their children but many are concerned that society attaches a stigma to dads who work part-time or even take the minimum parental leave. In November Deputy Prime Minister Nick Clegg announced a new system of flexible parental leave which will come into effect in 2015. - [New law for fathers could benefit all working women](https://www.lawspeed.com/new-law-for-fathers-could-benefit-all-working-women/) - A new law which extends the rights of working fathers could have the additional benefit of reducing discrimination against women in the workplace. Adrian Marlowe, MD at Lawspeed, sees the forthcoming system of flexible parental leave as a step towards true gender equality in the recruitment process. Marlowe said: “Whilst it is against the law - [Government reveals significant increase in MSC tax investigations](https://www.lawspeed.com/government-reveals-significant-increase-in-msc-tax-investigations/) - The government has confirmed that its use of the Managed Service Companies (MSC) legislation to recover tax and National Insurance has escalated significantly in the past year. Recruitment law specialists Lawspeed submitted two Freedom of Information requests to HM Revenue and Customs (HMRC) and discovered that the number of enquiries alive at April 2012 was - [Avoid a toxic start to 2013 – book a SPA](https://www.lawspeed.com/avoid-a-toxic-start-to-2013-book-a-spa/) - 2012 was a challenge for everyone so after weathering the storms and surviving the excesses of the festive period now is probably a good time for recruitment agencies to check up on their wellbeing. It’s time to book a SPA. A Lawspeed SPA may not offer you full use of an indoor pool, a complimentary - [Annual increase in maximum tribunal awards announced](https://www.lawspeed.com/annual-increase-in-maximum-tribunal-awards-announced/) - The government has announced its annual increases in the maximum compensation awards that can be awarded by an employment tribunal in unfair dismissal cases. The maximum compensation award in unfair dismissal claims has increased from £72,300 to £74,200. For redundancy payments and calculating the basic award in an unfair dismissal claim, the cap on a - [IR35 – The debate](https://www.lawspeed.com/ir35-the-debate/) - On 12th December the contractor website Shout99 published an initial roundup or reactions (from Minor to Major to the proposed new changes to the IR35 rules). Comments varied with some commentators suggesting that the changes are in essence only minor. Our view is that the changes will have serious consequences – see our previous article - [New IR35 rules threaten contracting – rules to be explained at upcoming Lawspeed seminar – 3 days left to book!](https://www.lawspeed.com/new-ir35-rules-threaten-contracting-rules-to-be-explained-at-upcoming-lawspeed-seminar-3-days-left-to-book/) - On 11th December the government published new rules applicable to IR35, set to take effect in April 2013. It has also published the planned General Anti Avoidance Rules, an overarching set of rules applicable to tax avoidance. “The planned change to the IR35 rules threatens contracting in a number of different ways, and adds to - [Finance Bill could spell the end of IR35 ‘tax avoidance’ for interims and contractors in roles](https://www.lawspeed.com/finance-bill-could-spell-the-end-of-ir35-tax-avoidance-for-interims-and-contractors-in-roles/) - True to its promise in the Chancellors Autumn statement the government has drafted legislation to tighten IR35 tax laws following the recent “controlling persons” consultation. Under the intermediaries rules known as IR35, applicable since April 2000, a contractor intermediary is obliged to treat the majority of income from its contracts as employment income of its - [AWR myths 12 - 15](https://www.lawspeed.com/awr-myths-12-15/) - 12. Holiday pay must be part of the ‘payments between assignments’ under the Swedish Derogation model Fact or fiction? Fiction – holiday pay only accrues when the worker is actually working. When making payments to individuals under the Swedish Derogation model, holiday pay will not be accrued. 13. Agency workers will be entitled to SSP - [AWR myths 6-11](https://www.lawspeed.com/awr-myths-6-11/) - 6. The R.5 rights to equal pay can be avoided by switching the workers to a new hirer every 12 weeks Fact or fiction? Part fact, part fiction – this is correct, unless the agency worker is alternated between hirer A and hirer B in order to try and avoid the rights accruing, in which - [Controlling persons out, but supply workers and schemes still in spotlight](https://www.lawspeed.com/controlling-persons-out-but-supply-workers-and-schemes-still-in-spotlight/) - The Chancellor’s Autumn Announcement that the government will not be introducing new legislation to tax so called “controlling persons” was accompanied by a statement that the government would be strengthening IR35 to put beyond doubt that it applies to office holders for tax purposes. This implies that the government is planning to amend the IR35 - [AWR Myths Christmas Calendar](https://www.lawspeed.com/awr-myths-christmas-calendar/) - 1. Personal Service Company (PSC) contractors are automatically outside of the scope of the AWR Fact or fiction? Fiction – an individual working through a PSC is not automatically outside the scope of the AWR. However, if the individual is ‘carrying on a business undertaking’ and is supplied under the right form of contract where - [40% of fastest growing recruitment businesses are Lawspeed clients!](https://www.lawspeed.com/40-of-fastest-growing-recruitment-businesses-are-lawspeed-clients/) - Lawspeed, the recruitment and employment law specialist, congratulates 5 of its clients that have this year achieved a listing in the Sunday Times Fast Track 100 listing published on 2nd December. Ravi Murphy, a director of Lawspeed, said “This year 13% of the top 100 are recruitment businesses and have been listed amongst Britain’s top - [New Tax legislation on the way?](https://www.lawspeed.com/new-tax-legislation-on-the-way/) - Wednesday 5th December 2012 will see the chancellor George Osborne deliver his autumn statement. Whilst the headlines may be taken by petrol duty or spending cuts, for recruiters there are other changes potentially anticipated which could have a significant impact. David Gauke, the Exchequer Secretary to the Treasury has recently announced that a draft finance - [Temp expenses are essential to promote growth and flexibility](https://www.lawspeed.com/temp-expenses-are-essential-to-promote-growth-and-flexibility/) - In the wake of the Independent Appeals Tribunal ruling to uphold the GLA’s revocation of the licence of FS Commercial (FSC) because it operates a particular tax scheme for its workers, it is important to keep an eye on the big picture, says the Association of Recruitment Consultancies (ARC). The GLA case related to a - [Recruitment industry warned by experts that tax avoidance is a real threat](https://www.lawspeed.com/recruitment-industry-warned-by-experts-that-tax-avoidance-is-a-real-threat/) - In a hard hitting seminar held in London yesterday by the recruitment law specialist Lawspeed, attendees were warned of the risks in dealing with tax avoidance schemes through payroll companies. Theresa Mimnagh, an associate director, explained “there has been little mention since the rules were introduced of any investigations under the MSC legislation, but we - [Off payroll, and in the news](https://www.lawspeed.com/off-payroll-and-in-the-news/) - News that an estimated 131 freelancers at the BBC could be offered staff contracts as a result of an internal tax review comes as no surprise given the recent media discussions on the moral aspects of the payment of tax. Other stories in the press on the use of off-shore umbrella companies meaning that payments - [Increase in the living wage – AWR implications](https://www.lawspeed.com/increase-in-the-living-wage-awr-implications/) - This week has seen the announcement that the living wage will increase to £8.55 per hour in London and £7.45 outside of London. The living wage is determined by the Centre for Research in Social Policy and the Greater London Authority as being the amount needed by a worker to meet reasonable living costs. The - [Are agencies liable for contractor tax?](https://www.lawspeed.com/are-agencies-liable-for-contractor-tax/) - Following recent investigations on Radio 5 Live into temp and contractor pay, and a continuous focus by government on tax avoidance particularly in the public sector, Lawspeed will explore these and other issues relating to contractor models in a seminar to be held on the 14th November 2012. With guest speaker Shawn Healy, a tax - [BDO Tax Director Shawn Healy to speak at Lawspeeds' Contractor seminar](https://www.lawspeed.com/bdo-tax-director-shawn-healy-to-speak-at-lawspeeds-contractor-seminar/) - Lawspeed is delighted to announce that a senior employment tax specialist from BDO LLP will speak at the forthcoming ‘Knowledge is Power’ seminar on 14th November, the topic ‘Critical issues for the recruitment industry - Contractors’ addresses issues that relate to contractor supply models and covers a wide range of related aspects. Shawn Healy is - [The ARC rejects attacks by Ed Miliband on the recruitment industry](https://www.lawspeed.com/the-arc-rejects-attacks-by-ed-miliband-on-the-recruitment-industry/) - Ed Miliband MP, and Labour leader has enjoyed a heightened profile after his signature address to the party faithful at the annual Labour conference in Manchester. In it, he has again criticised the recruitment industry. The ARC is now exploring the roots of this negativity - which stems from the assertion that access to - [National Minimum Wage changes – 1st October 2012](https://www.lawspeed.com/national-minimum-wage-changes-1st-october-2012/) - On 1st October 2012, the annual National Minimum wage increases take effect. Adult workers aged 21 and over will now be entitled to £6.19 an hour, an increase of 11p an hour from the previous rate of £6.08 per hour. There are also increases in the minimum wage payable to apprentices, which will increase for - [Pensions and auto enrolment – are you ready?](https://www.lawspeed.com/pensions-and-auto-enrolment-are-you-ready/) - Theo Paphitis and Karen Brady are all over our tellies backing auto-enrolment in adverts informing workers that from 1st October 2012, employers will have to provide a pension scheme, and to encourage worker contributions aswell. If this is the first you have heard about it, or you don’t feel at all ready yet – don’t - [Seminar - 14th November 2012 - critical issues: contractors](https://www.lawspeed.com/seminar-14th-november-2012-critical-issues-contractors/) - CRITICAL ISSUES FOR THE RECRUITMENT INDUSTRY: CONTRACTORS Lawspeed is pleased to announce a new seminar, part of our established 'Knowledge is Power' series. This seminar will provide a comprehensive round up of the critical issues that are currently affecting recruiters who are engaged in the supply of Limited Company and Umbrella Company contractors. The seminar - [Lawspeed creates new ARC webinars for Autumn 2012](https://www.lawspeed.com/lawspeed-creates-new-arc-webinars-for-autumn-2012/) - The Association of Recruitment Consultancies has enhanced its coordinated bank of recruitment and employment materials for UK corporate members. Its new web platform features an extensive ‘knowledge centre’ with additional training tools that include the information-rich Autumn 2012 webinar series, created by commercially-oriented recruitment law consultants at Lawspeed. The series (which is free to ARC - [Controlling Persons consultation closes; the Association of Recruitment Consultancies view](https://www.lawspeed.com/controlling-persons-consultation-closes-the-association-of-recruitment-consultancies-view/) - Following controversy over tax avoidance by some senior civil servants, and a dictum from the Treasury that those engaged to work for the government must be ‘on payroll’, the scope for recovering ‘proper levels of tax’ from highly placed individuals in the private sector recently took a step closer. The ‘Controlling Persons’ consultation involves individuals - [Can an employee who is off sick carry their annual leave over to another leave year?](https://www.lawspeed.com/can-an-employee-who-is-off-sick-carry-their-annual-leave-over-to-another-leave-year/) - Yes – they can now. The Court of Appeal’s new ruling, NHS Leeds v Larner broadens an earlier ECJ decision allowing an employee who was off sick to have their leave carried forward into the next year. This used to only apply in the public sector, but now the European Court of Justice’s ruling has - [A taxing summer](https://www.lawspeed.com/a-taxing-summer/) - Media coverage on the schemes available to pay lower levels of tax is still gathering momentum. But the argument appears to be shifting from whether the methods sought are for tax efficiency or tax avoidance. An emerging viewpoint also questions whether operating in such a way is morally wrong, regardless of the legal position. Government - [More to be done to level the RPO playing field](https://www.lawspeed.com/more-to-be-done-to-level-the-rpo-playing-field/) - The recently announced code of conduct for recruitment supply chains and RPOs does not go far enough says the Association of Recruitment Consultancies (ARC) and fails to address the key issue. The code seeks to tackle an unfairness where second tier agencies, if they wish to deal with a hirer that uses an RPO, have - [Majority of employers plan to recruit via social media – but don't make it personal, warns Lawspeed](https://www.lawspeed.com/majority-of-employers-plan-to-recruit-via-social-media-but-dont-make-it-personal-warns-lawspeed/) - Social media has come centre stage when it comes to recruiting new talent, says a new study from recruitment platform Jobvite – but employers could be on shaky ground if they use people's personal information to do background checks. The Jobvite social recruiting survey 2012 found that 92% of US companies plan to use social - [Agency workers injured in platform fall: who is responsible?](https://www.lawspeed.com/agency-workers-injured-in-platform-fall-who-is-responsible/) - It has recently been reported that two temporary workers suffered life-changing injuries as a result of poor health and safety practices by a manufacturing firm to whom they were supplied. So, we are revisiting the obligations of agencies and hirers towards temporary workers. What health and safety obligations are agencies and hirers obliged to supply - [Age discrimination is still rife, says think tank](https://www.lawspeed.com/age-discrimination-is-still-rife-says-think-tank/) - More people aged 50-65 are in employment than ever before, but if they lose their job they discover the recruitment process works against them, according to a report by think tank Policy Exchange. Too Much to Lose: Understanding and Supporting Britain’s Older Workers reveals that someone over 50 who is unemployed is much less likely - [Is your business compliant with the new cookies legislation?](https://www.lawspeed.com/is-your-business-compliant-with-the-new-cookies-legislation/) - Have more websites asked about your privacy settings lately? They all seem to want to know if you are willing to accept cookies. Unfortunately this doesn’t refer to elevenses, but falls in with new legislation that requires websites to seek your consent before a cookie gets downloaded to your computer. What is a cookie? A - [Consultation on a General Anti-avoidance Rule](https://www.lawspeed.com/consultation-on-a-general-anti-avoidance-rule/) - HM Treasury has launched a consultation on a General Anti-Abuse Rule (GAAR) with a view to tackling ‘artificial and abusive tax avoidance schemes’. This is the result of a review commissioned by the Treasury from tax specialist Graham Aaronson QC as to whether the introduction of a broad anti-avoidance rule would act as a deterrent - [Controlling persons? Government reacts to tax avoidance within the public sector](https://www.lawspeed.com/controlling-persons-government-reacts-to-tax-avoidance-within-the-public-sector/) - As the IR35 storm brews, watch out for interesting recent developments in the field of limited company contractors. Following the expose of Ed Lester (the boss of the Student Loans Company found to be being paid through an intermediary limited company), it has been found that others are working this way - and whilst formally - [Settlement agreements are in, no fault dismissals are out!](https://www.lawspeed.com/settlement-agreements-are-in-no-fault-dismissals-are-out/) - And so - the Enterprise and Regulatory Reform Bill has had a second reading in the House of Commons. Vince Cable announced that the government will not be pursuing Adrian Beecroft's 'compensated no fault dismissals' proposals. Over 60 MP’s had signed had a motion calling on the government to drop it, as the move would - [Will the Enterprise and Regulatory Reform Bill promote conciliation?](https://www.lawspeed.com/will-the-enterprise-and-regulatory-reform-bill-promote-conciliation/) - Changes in the Enterprise and Regulatory Reform Bill are intended to promote conciliation and reduce the number of employment tribunal claims – but how far will they achieve this? The Bill, which has received its second reading in Parliament recently, contains a number of changes affecting employment law, and the procedure to be adopted by - [Dismissal procedures: Why the processes in taking the decision are as important as the reasons behind it](https://www.lawspeed.com/dismissal-procedures-why-the-processes-in-taking-the-decision-are-as-important-as-the-reasons-behind-it/) - If an employee commits an act of serious misconduct (such as theft, or assault), and there is compelling evidence to support the allegation, most people would consider dismissal to be a fair outcome. However this is not necessarily true, as unfair dismissal laws do not just look at the reason for the dismissal: Employment tribunals - [Lord Sugar picks a recruiter as his Apprentice](https://www.lawspeed.com/lord-sugar-picks-a-recruiter-as-his-apprentice/) - Recruitment manager Ricky Martin has won the latest BBC business contest, The Apprentice, securing £250,000 investment for his new business venture. Martin, from Portsmouth, beat Jade Nash, Nick Holzherr and Tom Gearing in the eighth series of the business reality show. Martin has an Honours degree in Biochemistry, and impressed Lord Sugar with plans for - [You can lose your shirt if you get the “Effective Date of Termination” wrong](https://www.lawspeed.com/you-can-lose-your-shirt-if-you-get-the-effective-date-of-termination-wrong/) - Identifying the correct date of termination of an employment contract is crucial, and getting it wrong can be costly, as one employer recently discovered. An employee has three months from the EDT to present a claim to an employment tribunal So, it is extremely important for both parties to be crystal clear as to - [Have recruiter LinkedIn passwords been hacked and leaked online?](https://www.lawspeed.com/have-recruiter-linkedin-passwords-been-hacked-and-leaked-online/) - As you may have already noticed, more than 6.4 million LinkedIn passwords have leaked to the Web after an apparent hack. Some login details are encrypted, but all users are advised to change their passwords. LinkedIn has more than 150 million users worldwide, so this appears to affect less than 5 percent of its user - [Will no-fault dismissals help or hinder businesses?](https://www.lawspeed.com/will-no-fault-dismissals-help-or-hinder-businesses/) - The introduction of the no-fault dismissal procedure in the Beecroft Report is meant to reduce the burden of compliance and encourage growth in small businesses – but could it actually have the opposite effect? The no-fault proposals are intended to lessen the pressure on small businesses without HR staff by helping them to manage the - [What is an opt out and why is it important?](https://www.lawspeed.com/what-is-an-opt-out-and-why-is-it-important/) - Opt out' is a common phrase in the recruitment industry, but who is opting out and what is it they are opting out of? The term 'opt out' is a term used to describe the situation where a limited company and the individual working through that limited company agree that the Conduct of Employment Agencies - [Euro 2012: are you being sporting about it?](https://www.lawspeed.com/euro-2012-are-you-being-sporting-about-it/) - Are you allowing your staff to leave early to watch football matches And what are the legal requirements? All the talk this summer is of the Jubilee and the Olympics, but England is also involved in another significant sporting event: the European football championships. You may have formulated holiday policies to allow staff to attend - [How will the doctors strike affect recruiters?](https://www.lawspeed.com/how-will-the-doctors-strike-affect-recruiters/) - The British Medical Association has announced that for the first time since 1975, doctors will be striking on 21 June as a protest against proposed changes to their pension arrangements. What do medical recruiters have to bear in mind? Recruiters will know that it is a breach of regulation 7 of the Conduct of Employment - [Scaling back the Gangmasters - how the Red Tape Challenge reached the GLA](https://www.lawspeed.com/scaling-back-the-gangmasters-how-the-red-tape-challenge-reached-the-gla/) - The Gangmasters Licensing Authority (GLA), which has protected temporary workers in farming, shellfish gathering, and food processing since 2005, is to be scaled down and refocused. The changes will concentrate on stamping out the high-risk, criminal labour providers with links to serious crime and human trafficking. Agriculture Minister, Jim Paice announced how vulnerable workers will be - [New IR35 guidance: as clear as mud](https://www.lawspeed.com/new-ir35-guidance-as-clear-as-mud/) - The latest guidance that was designed to provide clarity on IR35 has done anything but. Not only are contractors stuck with the same troublesome principles that have been grappled with since IR35s announcement on the contracting scene, but now there are even more tests to apply; Quite literally in the most recent guidance. For those - [References - approach with caution](https://www.lawspeed.com/references-approach-with-caution/) - When providing a reference for an ex-employee it is important to approach with an element of caution. Getting it wrong could lead to claims of discrimination, breach of contract, defamation, malicious falsehood or negligent mis-statement. Over the years case law has helped to highlight some key points to take into account when providing a reference. - [6 reasons to be happy in 2012](https://www.lawspeed.com/6-reasons-to-be-happy-in-2012/) - With the (not so unexpected) news that the UK is officially back in recession, and the fears that we may already have had our summer for 2012 it is easy to feel down beat. So we thought we’d remind you of a few things which you have to look forward to over the coming months. - [Health and safety obligations on recruiters](https://www.lawspeed.com/health-and-safety-obligations-on-recruiters/) - It has recently come to light that Royal Mail has decided it is unsafe for its staff to deliver post to certain properties following health and safety assessments. The risks include uneven road surfaces which have reportedly resulted in multiple “near misses”, and the risk of a cat attack through the letter box. This has - [EAS enforcement April 2012](https://www.lawspeed.com/eas-enforcement-april-2012/) - The Department of Business Innovation and Skills (BIS) this week announced that Zoe Evans, the Director of a recruitment agency in Loughborough trading as Kensington Mayfair, has been required by magistrates to pay £2,030.00 in fines and costs after prosecution for withholding pay from seven workers. Her actions were in breach of Regulation 12 of - [Changes to injury reporting rules](https://www.lawspeed.com/changes-to-injury-reporting-rules/) - From the 6th April 2012, the rules relating to the reporting of workplace injuries have changed. It used to be the case that employers were required to report any injury at work that incapacitates an employee for 3 or more consecutive days. The report had to be made within 10 days of the relevant incident. - [New recruiting techniques: Same discrimination rules - why you should be careful](https://www.lawspeed.com/new-recruiting-techniques-same-discrimination-rules-why-you-should-be-careful/) - Following a range of recent articles relating to factors taken into account in the recruitment process, including that applicants are given just six seconds to prove themselves suitable for a position and that good looking male applicants are more likely to be given a role over a good looking female, we have to question whether - [HSBC announces flexible working for all new parents](https://www.lawspeed.com/hsbc-announces-flexible-working-for-all-new-parents/) - HSBC has announced that it will offer all new parents a part-time role of at least 2.5 days per week at a pro rata salary and the same level as their original role following maternity or paternity leave in order to “help their employees balance the demands of family life with their career development". Whilst - [Can a worker rely on an illegal employment contract for protection?](https://www.lawspeed.com/can-a-worker-rely-on-an-illegal-employment-contract-for-protection/) - In the case of Zarkasi v Anandita, a claimant sought to bring a number of claims dependant on a contract of employment which was deemed unlawful from the outset by the Employment Tribunal (ET). The claimant obtained a passport and visa using a false identity, yet upon leaving her job in the UK she brought - [Accusation that 'Agencies make millions from NHS' misleading writes Adrian Marlowe Chairman of the Association of Recruitment Consultancies (ARC)](https://www.lawspeed.com/accusation-that-agencies-make-millions-from-nhs-misleading-writes-adrian-marlowe-chairman-of-the-association-of-recruitment-consultancies-arc/) - A Sunday Telegraph article of 25 March 2012 entitled ‘Agencies make millions from £120-an-hour doctors’ omitted several significant points. Given the important role that recruitment companies, including ‘temp agencies’, play in the economic recovery and their particularly crucial role supporting the NHS, the ARC believes that it would be useful to outline some issues that demonstrate the - [Weightwatchers case widens substitution case law](https://www.lawspeed.com/weightwatchers-case-widens-substitution-case-law/) - Substitution clauses were once regarded by some as a hefty indicator of genuine self-employment in IR35 and employment status case law, yet their credibility has diminished significantly in recent years – as reported in January, they have even been described in court as “basically irrelevant window-dressing”. However a truly genuine substitution clause is still effective - [Increase in the National Minimum Wage for 2012/2013](https://www.lawspeed.com/increase-in-the-national-minimum-wage-for-20122013/) - An announcement from the Department of BIS has confirmed that the adult National Minimum Wage (NMW) rate will increase by 11p from £6.08 to £6.19 an hour on 1st October 2012. This follows the recommendations of the independent Low Pay Commission for this year’s NMW rates. The Government has also confirmed that the minimum wage - [Call for evidence in no fault dismissals](https://www.lawspeed.com/call-for-evidence-in-no-fault-dismissals/) - George Osbourne has made the suggestion that no fault dismissals be introduced for “the smallest businesses”, namely businesses with fewer than 10 employees, as a means of protecting employers’ interests. A call for evidence has been made to allow the government to assess the impact of the idea. Employers are often faced with the struggle - [ARC call to resolve agency worker employment status](https://www.lawspeed.com/arc-call-to-resolve-agency-worker-employment-status/) - Adrian Marlowe, Chairman of the Association of Recruitment Consultancies, launching ARC’s new campaign, explained “Agency workers are able to bring claims against hirers for employment rights even though current legal authorities indicate that these rights do not generally exist. The threat of this kind of action is of concern to both hirers and agencies alike, - [Rangers FC faces its toughest match yet](https://www.lawspeed.com/rangers-fc-faces-its-toughest-match-yet/) - The recent high profile move into administration by Rangers FC has brought an outcry from fans and commentators alike, as the club’s very existence is threatened by Her Majesty’s Revenue and Customs (HMRC). Is it right that the players be taxed in the same way employees usually would be? HMRC certainly believes so. The general - [Increase in parental leave delayed](https://www.lawspeed.com/increase-in-parental-leave-delayed/) - The Parental Leave Directive (2010/18/EC) increases the minimum parental leave provision from three to four months. Member States were required to implement the Directive by 8th March 2012. However, Member States can delay implementation by a year if this is necessary “to take account of particular difficulties”. It has been reported that the Department for - [Revised timetable for pensions auto-enrolment](https://www.lawspeed.com/revised-timetable-for-pensions-auto-enrolment/) - The Department for Work and Pensions (DWP) has published a revised timetable to reflect the new date by which smaller employers will be subject to the auto-enrolment duties. According to the new timetable, auto-enrolment will apply for everyone by February 2018.This follows a Government announcement in November 2011 that businesses would be given more time - [Use of companies by contractors is justified despite witch-hunt by press](https://www.lawspeed.com/use-of-companies-by-contractors-is-justified-despite-witch-hunt-by-press/) - Unless you have been deprived of television and internet usage for the past month, you would have been witness to the recent media uprising against the use of limited companies by individuals as a mechanism for providing services, most notably those working in the public sector. Contractors therefore may be wondering if there will be - [Public v Private](https://www.lawspeed.com/public-v-private/) - A dispute over LinkedIn has led to perhaps the first constructive dismissal case of its kind; the relationship between former HR exec John Flexman and his employer BG Group was tarnished when the individual posted ‘private’ information on his public LinkedIn profile. Mr Flexman handed in his resignation in June 2011, following a disciplinary hearing - [A Scandinavian derogation](https://www.lawspeed.com/a-scandinavian-derogation/) - For once this is not an article about a derogation of the Swedish variety! Norway’s largest workers’ organisation, The Norwegian Confederation of Trade Unions (LO) has announced that it will not support the implementation of the EU Temporary Agency Workers Directive which intends to offer agency workers more protection and make it easier for employers - [The right of substitution – recent developments](https://www.lawspeed.com/the-right-of-substitution-recent-developments/) - 'Personal service' is an important factor in determining whether various pieces of tax legislation apply, including IR35 and sections 44-47 ITEPA. Two recent cases appear to highlight a possible conflict in approach. 1) HMRC v Talentcore (2011). This case concerns the Agency Worker Tax Rules (sections 44-77 ITEPA). Individuals were supplied to cosmetic companies for - ["OUT SICK. C U 2MORROW"](https://www.lawspeed.com/out-sick-c-u-2morrow/) - According to Dr Cliff Arnall, creator of the equation that calculates the ‘most depressing day of the year’, we are in the midst of a miserable time. This can lead to poor productivity and increased levels of staff sickness. It may therefore be a good idea for employers to review their company sickness absence policies. - [Student loans boss shows that it pays to be a Limited Company Contractor](https://www.lawspeed.com/student-loans-boss-shows-that-it-pays-to-be-a-limited-company-contractor/) - The revelation that Ed Lester, Chief Executive of the Student Loans Company, was having his £182,000 salary paid through his own personal service company as part of a tax avoidance scheme has brought such arrangements into the public eye. Whilst the use of such companies is common knowledge to those in the recruitment industry, the - [Change in annual compensation limits for redundancy and unfair dismissal awards](https://www.lawspeed.com/change-in-annual-compensation-limits-for-redundancy-and-unfair-dismissal-awards/) - We are at that time of year when increases in tribunal awards and calculations are due to be applied and this year is no different from any other. The amount an individual can receive if made redundant or unfairly dismissed will increase from 1st February 2012 as follows: The cap on ‘a week’s pay’ used - [ARC welcomes REC U-turn on supply teachers](https://www.lawspeed.com/arc-welcomes-rec-u-turn-on-supply-teachers/) - The Association of Recruitment Consultancies has welcomed the decision by the REC not to include a prohibition on supply teacher agencies from using the ‘professions’ exemption within the Agency Workers Regulations. Adrian Marlowe, chairman of the ARC, said “Having pursued the issue with both the Department for Education and the REC for a number of - [Holiday requests](https://www.lawspeed.com/holiday-requests/) - Roll up, roll up. Employers may be concerned that this summer, rather than rolling up their sleeves, workers are rolling up to various sporting events en masse leaving the business understaffed and overwhelmed. 2012 will be providing many high profile events, such as the European Football championships, not to mention the greatest sporting show on - [Twitter dispute](https://www.lawspeed.com/twitter-dispute/) - Who owns the followers of a Twitter account after a tweeting employee leaves a company? This is the $340k question being asked of an American court, which could set a new precedent and send shockwaves throughout the legal world. In this case, an employee working for a telephone company blogged and tweeted as part of - [IR35 case law developments](https://www.lawspeed.com/ir35-case-law-developments/) - The recent case of JLJ Services Limited v HMRC (2011) has indicated which tests carry the most importance in establishing IR35 status. Mr Spencer, an IT specialist, provided services to Allianz through his own limited company between 2000 and 2007. He was supplied to Allianz through Highams Recruitment Limited, initially to perform project work, but - [AWOL employee on the Swedish Derogation](https://www.lawspeed.com/awol-employee-on-the-swedish-derogation/) - With the Agency Workers Regulations in their infancy, we still await the tribunal cases that will address the significant number of unknowns. One area in which the Association of Recruitment Consultancies has pushed for clarification from the department of Business Innovation and Skills is Regulation 10, the ‘Swedish Derogation’. Specifically, under what conditions could a - [Indemnities](https://www.lawspeed.com/indemnities/) - More and more recruiters are finding themselves forced to sign up to contracts for recruitment services that have been drafted by hirers, often including wide-reaching and sometimes onerous indemnities. With the AWR rights in force, the trend is likely to continue and indemnities are likely to become all the more risky. But not all recruiters - [Using a Swedish Derogation contract – some considerations](https://www.lawspeed.com/using-a-swedish-derogation-contract-some-considerations/) - Since the AWR came into force, much has been written on R.10 ‘Pay between assignments’ contracts, commonly called the Swedish Derogation (SD), the one available derogation from the basic principle under the regulations, whereby the right to equal pay falls away in return for the employer paying the agency worker for periods when they are - [Flexible working and the economy](https://www.lawspeed.com/flexible-working-and-the-economy/) - In a time of economic struggle where employers are risk adverse; a time of high unemployment and low confidence; there is real opportunity for recruitment companies. Temporary workers may present a solution during difficult times, and having more candidates to choose from may be beneficial to clients. That is of course, unless the traditional pros - [Health and safety reforms](https://www.lawspeed.com/health-and-safety-reforms/) - “We can’t do that anymore because of health and safety.” The above statement may become substantially less common, if the Department for Work and Pensions (DWP) comes good on its word to reduce health and safety regulations by up to half over the next three years. Is this just a political gimmick or a genuinely - [Workplace pensions and automatic enrolment](https://www.lawspeed.com/workplace-pensions-and-automatic-enrolment/) - The Pensions Act 2011 received Royal Assent last November, which means that from 1st October this year, employers will have a legal obligation to automatically enrol ‘eligible jobholders’ onto a qualifying workplace pension scheme. Both employers and eligible jobholders will be required to contribute to that pension unless the jobholder exercises their right to opt - [Self employment: solution to the AWR or potential minefield?](https://www.lawspeed.com/self-employment-solution-to-the-awr-or-potential-minefield/) - Historically recruiters have tended to shy away from supplying workers engaged on a self employed basis, largely due to the potential tax issues that may arise. There has reportedly been a recent surge in the popularity of self employment arrangements in order to avoid the AWR. So should self employment be embraced as a solution - [Employment Tribunal Fees](https://www.lawspeed.com/employment-tribunal-fees/) - As anticipated, the Government has proposed the introduction of fees for applications to Employment Tribunals. Two options have been proposed: Option one: an initial fee of £150-£250 to begin a claim, with an additional fee of £250-£1250 if the claim goes to a hearing. There would be no limit to the maximum award. Option two: - [The Equality Act 2010 – one year on](https://www.lawspeed.com/the-equality-act-2010-one-year-on/) - The Equality Act was largely a consolidation of existing discrimination legislation, but it also brought in new provisions which may have been overlooked. Since 1st October 2010 is has been unlawful to ask applicants about their health prior to offering employment or placing them into a pool of persons to whom employment may be offered. - [Restrictions on Bulgarian and Romanian nationals to remain in force](https://www.lawspeed.com/restrictions-on-bulgarian-and-romanian-nationals-to-remain-in-force/) - Recruiters should be aware that restrictions on Bulgarian and Romanian nationals working in the UK will continue until the end of 2013. EU nationals are allowed to work in any EU country under EU law. However EU states are permitted to impose transitional restrictions for up to 7 years where there is threat of serious - [Holiday Entitlement – exploring recent developments](https://www.lawspeed.com/holiday-entitlement-exploring-recent-developments/) - There have been recent and noteworthy case law developments regarding holiday entitlement. The specific cases in question concern sick workers, oil-rig workers and airline pilots. However the decisions have implications for other industries. Such as in the case of Russell v Transocean International Resources (2011) where the Supreme Court confirmed that offshore oil-rig workers - [Calls for Evidence](https://www.lawspeed.com/calls-for-evidence/) - How effective are the Transfer of Undertakings (Protection of Employment) Regulations (TUPE)? The Government has announced a ‘call for evidence’ to put forward the case for change. Ed Davey, the BIS Minister for Employment relations has advised the House of Commons that the Red Tape Challenge, the Government’s dialogue with business, has raised concerns that - [Increase in maternity, paternity and adoption pay](https://www.lawspeed.com/increase-in-maternity-paternity-and-adoption-pay/) - The Government has confirmed the new benefit rates for 2012-2013. The annual up-rating of benefits will affect State Pensions and most other benefits from the week beginning 9 April 2012. The standard rate of statutory maternity, paternity and adoption pay will increase from £128.73 to £135.45 per week from 1 April 2012. Statutory sick - [Annual Leave](https://www.lawspeed.com/annual-leave/) - With the Christmas holidays fast approaching, those who have completed their Christmas shopping may turn their thoughts to the exciting and festive topic of annual leave entitlement! There can sometimes be confusion in this area, such as workers expecting entitlement to paid time off over public and bank holidays, or the commonly held view that - [AWR Myths 17-24](https://www.lawspeed.com/awr-myths-17-24/) - 17. For the professions or business undertaking solution to work, there has to be an absence of supervision and direction Fact or fiction? Fiction – Without any supervision and direction, the individual would not be an agency worker in the first place, and the AWR would not apply. If an agency worker is carrying on - [Mission Impossible](https://www.lawspeed.com/mission-impossible/) - Many recruiters are finding themselves in unfamiliar territory with some of their obligations under the Agency Worker Regulations (AWR), in particular the requirement to obtain information on pay and basic working conditions from clients, in order to establish the correct pay for candidates once they have qualified for it. The widely reported problem is that - [AWR Advent Calender: Myths 10-16](https://www.lawspeed.com/awr-advent-calender-myths-10-16/) - 10. The AWR does not apply if the contract started before 1st October 2011 Fact or fiction? Fiction – the AWR applies to all supply after 1st October 2011. It does not matter when the supply began. The weeks worked by an agency worker before this time however, do not contribute to the twelve weeks - [Christmas Special AWR Advent Calendar](https://www.lawspeed.com/christmas-special-awr-advent-calendar/) - AWR Myths 1-9 1. Personal Service Company (PSC) contractors are automatically outside of the scope of the AWR Fact or fiction? Fiction – an individual working through a PSC is not automatically outside the scope of the AWR. However, if the individual is ‘carrying on a business undertaking’ and is supplied under the right form - [ARC urges DfE and REC to abandon new quality mark for teaching agencies](https://www.lawspeed.com/arc-urges-dfe-and-rec-to-abandon-new-quality-mark-for-teaching-agencies/) - The Association of Recruitment Consultancies (ARC) has received a response from the Department for Education (DfE) clarifying the department’s interpretation of R.3(2) of the Agency Workers Regulations (AWR), which allows professionals to be exempted from scope of the AWR. This follows the publication of amended guidance for teachers on the 18th November and inclusion of - [Replacing striking workers with agency staff](https://www.lawspeed.com/replacing-striking-workers-with-agency-staff/) - The nation is set to be hit with widespread strike action tomorrow and as businesses are considering further job and pay cuts across the board, the threat of strike action is likely to continue well into 2012. A staffing agency might therefore expect to be approached by strike-hit organisations, but what does the law say - [Philosophical Belief Discrimination](https://www.lawspeed.com/philosophical-belief-discrimination/) - The most commonly encountered discrimination claims are usually on the grounds of disability, race, gender and age. However, there is another area to be alert to – discrimination on the grounds of philosophical or religious belief. This is contained in the Equality Act 2010. The religious belief element is perhaps easier to digest – dismissing - [Social Media – Untapped Resource or Hot Potato?](https://www.lawspeed.com/social-media-untapped-resource-or-hot-potato/) - The ability to reach out to vast numbers of potential clients at speed is something that most businesses desire. However, entering into the brave new world of social media without a specific social media policy can be akin to strolling onto a battlefield without armour. Both are ill advised. And regardless of your business’ intention - [Revised DfE Guidance](https://www.lawspeed.com/revised-dfe-guidance/) - The Department for Education has revised its Agency Workers Regulations guidance, first issued in August 2011, to state its view that teachers cannot be outside the scope of the AWR using the professions exclusion at R.3(2). This view is made on the basis that “the relationship between hirers and agency teachers is not a ‘business - [Do They Know it’s Christmas?](https://www.lawspeed.com/do-they-know-its-christmas/) - The weekly countdown to Christmas is already underway, and with it comes the annual headache of planning the staff Christmas party. With the AWR in force, hirers want to know whether or not they will have to hand out invitations to their agency workers. Under the AWR agency workers are granted equal access to - [Gross Payment Status under Construction Industry Scheme](https://www.lawspeed.com/gross-payment-status-under-construction-industry-scheme/) - A First Tier Tax Tribunal (‘FTTT’) ruling in the matter of John Schofield v HMRC has demonstrated that HMRC does not always apply its statutory powers correctly. The issue lay as to whether HMRC had correctly cancelled Mr Schofield’s gross payment status under the Construction Industry Scheme ("CIS"). The appeal was first heard by the - [The Agency Workers Regulations (Northern Ireland) 2011](https://www.lawspeed.com/the-agency-workers-regulations-northern-ireland-2011/) - The Agency Workers Regulations (Northern Ireland) 2011 have now been published, completing implementation of the Agency Workers Regulations (“AWR”) across the United Kingdom. Unlike mainland UK, the Regulations will be introduced in Northern Ireland on 5th December 2011, the deadline for implementation required by the Directive. Given that the AWR represents one of the most - [ARC asks: "Is the public sector closing the door on AWR solutions?"](https://www.lawspeed.com/arc-asks-is-the-public-sector-closing-the-door-on-awr-solutions/) - As private sector businesses explore solutions to the AWR is the public sector doing the same? No, not if the Department for Education position is an indicator, says Adrian Marlowe, chairman of the Association of Recruitment Consultancies ("ARC"). Now that the Agency Workers Regulations are in force, understandably both agencies’ and hirers’ minds are focused - [The Agency Workers Regulations, National Minimum Wage and unfair dismissal](https://www.lawspeed.com/the-agency-workers-regulations-national-minimum-wage-and-unfair-dismissal/) - The 1st of October 2011 saw three significant changes affecting employment relationships and the recruitment industry. The long awaited Agency Workers Regulations 2010 ("AWR") are now in force, the National Minimum Wage has increased and we no longer have a default retirement age. For anyone who is not already fully aware of the AWR and - [When is an employee not entitled to a bonus?](https://www.lawspeed.com/when-is-an-employee-not-entitled-to-a-bonus/) - The case of Hellewell and McArdle v Axa Services Ltd highlighted when an employee (or ex-employee) is not entitled to a bonus – the answer to this being when there is no contractual obligation to do so. The case was heard by the Employment Appeal Tribunal. Two former employees who had been dismissed for gross - [Double Taxation Treaty – contractor appeal](https://www.lawspeed.com/double-taxation-treaty-contractor-appeal/) - The Court of Appeal has handed down its judgment in the case of Huitson v HMRC. This case concerned a contractor claimant who was arguing that the Treasury’s retrospective change to the taxation of foreign partnerships was an infringement of his Human Rights. Mr Huitson lived in the UK but provided his IT services through - [Amendments to the Agency Workers Regulations 2010](https://www.lawspeed.com/amendments-to-the-agency-workers-regulations-2010/) - The Agency Workers (Amendment) Regulations 2011 have been published and provide for three small but important amendments to the Agency Worker Regulations 2010 (“AWR”). These amendments relate to the definition of an agency worker, the Swedish Derogation and liability provision in the AWR and have been included to correct existing drafting errors and to address - [Supreme Court ruling - Autoclenz Limited v Belcher and others](https://www.lawspeed.com/supreme-court-ruling-autoclenz-limited-v-belcher-and-others/) - The ruling of the Supreme Court last week reinforces the position that in determining the employment status of an individual, the courts will look beyond contractual terms to see the actual reality of the relationships between the parties. The case involved 20 claimants, all of whom were engaged by Autoclenz as valeters and issued with - [Holiday pay during sickness - no formal request required](https://www.lawspeed.com/holiday-pay-during-sickness-no-formal-request-required/) - A recent case (NHS Leeds v Mrs J Larner) heard in the Employment Appeal Tribunal (“EAT”) pondered whether a worker, who is away on sickness absence, is entitled to holiday pay if they have not actually submitted a request for the holiday to be carried over before the pay year ends. It was determined that - [Is the Swedish Derogation the right route for you?](https://www.lawspeed.com/is-the-swedish-derogation-the-right-route-for-you/) - It has become apparent that a number of agencies are being asked by their clients to use the Swedish Derogation model as a means of limiting client’s liability under the Agency Worker Regulations (“AWR”). But is this really the best solution for all involved? The AWR come in to force on 1st October 2011 and - [Lord Justice Mummery hits the nail on the head over employment tribunal claims](https://www.lawspeed.com/lord-justice-mummery-hits-the-nail-on-the-head-over-employment-tribunal-claims/) - The recent comments of Lord Justice Mummery of the Court of Appeal made in relation to the employment tribunal service (ETS) are to be welcomed, says the Association of Recruitment Consultancies (ARC). It is understood that LJ Mummery, previously president of the Employment Appeal Tribunal, in the course of delivering a judgment also delivered a - [HMRC announcement on pay day tax relief could damage recruitment supply](https://www.lawspeed.com/hmrc-announcement-on-pay-day-tax-relief-could-damage-recruitment-supply/) - HMRC’s latest announcement on “pay day by pay day tax relief models” may have unwelcome connotations for the recruitment industry, and could lead to wages inflation according to the Association of Recruitment Consultancies (ARC). HMRC’s announcement is targeted at umbrella companies, employment businesses, labour providers and temporary workers, and addresses tax relief on expenses. This - [ARC welcomes government rejection of GLA and EAS merger](https://www.lawspeed.com/arc-welcomes-government-rejection-of-gla-and-eas-merger/) - Following a recent meeting between the Association of Recruitment Consultancies and senior representatives at the Department of Business Innovation and Skills (BIS), the government reaffirmed that it has no plans to reintroduce licensing to the recruitment industry as a whole. Licensing does exist to an extent in some areas, for example under the Gangmasters Licensing - [IR35 and the AWR](https://www.lawspeed.com/ir35-and-the-awr/) - IR35 and the AWR are not linked, despite initial indications to the contrary in the first publication of the BIS guidance. The second issue of the BIS guidance has removed reference to IR35 tests following consultation with the Association of Recruitment Consultancies (ARC). Under IR35 a number of tests have been devised to determine the - [Government’s efficiency plans provide welcome opportunities for recruitment sector and public sector alike](https://www.lawspeed.com/governments-efficiency-plans-provide-welcome-opportunities-for-recruitment-sector-and-public-sector-alike/) - Responding to the ideas contained in the government white paper announced yesterday, the Association of Recruitment Consultancies pointed to the synergy between efficiency of service and the use of specialist resources offered by the recruitment industry. Adrian Marlowe, chairman of the ARC, explained “the plan appears to be to invite private business to quote for - [Striking out unfair dismissal claims](https://www.lawspeed.com/striking-out-unfair-dismissal-claims/) - An employment tribunal has the power to strike out claims which have no reasonable prospect of success. Employers are able to apply to have claims struck out before the case hearing takes place. A recent case in the Employment Appeal Tribunal (Lockey v East North East Homes Limited) highlighted the difficulties faced by employers when - [Agency worker not an employee of the agency](https://www.lawspeed.com/agency-worker-not-an-employee-of-the-agency/) - A recent case (The Secretary of State for Business Innovation & Skills v Mr J Studders and others) considered by the Employment Appeal Tribunal, has confirmed that in the vast majority cases there will be no employment relationship between an agency worker and the employment business that supplies them. Only if there are exceptional facts - [Client fined for death of agency worker](https://www.lawspeed.com/client-fined-for-death-of-agency-worker/) - A company has been fined £225,000 and ordered to pay costs of £95,000 after the death of an agency worker under their supervision. The accident occurred during roadside litter-picking, whereby the agency worker pulled out from the verge on which the work was being undertaken to rejoin the main carriageway. The worker’s van was hit - [Indirect discrimination can be justified on the basis of costs](https://www.lawspeed.com/indirect-discrimination-can-be-justified-on-the-basis-of-costs/) - Indirect discrimination is where an organisation applies a ‘provision, criterion or practice’ which disadvantages one group of individuals more than another. For example, imposing a requirement that a job is full-time only can indirectly disadvantage women who are more likely to have childcare responsibilities and perhaps require part-time work. This is to be distinguished from - [Olympic fever and the inevitable holiday requests](https://www.lawspeed.com/olympic-fever-and-the-inevitable-holiday-requests/) - Olympic fever has reached us with the recent conclusion of the ticket applications for 2012. Employers are likely to face many staff requesting annual leave to attend the games in 2012. The question is how can employers deal with the numerous and perhaps multiple requests from staff for time off to attend? This applies particularly - [Database rights and protections](https://www.lawspeed.com/database-rights-and-protections/) - Databases can be a valuable commercial asset for a recruitment company and generally time and money is invested in their creation and maintenance. The law protects this investment in two ways: copyright and under the Copyright and Rights in Databases Regulations 1997 which created a "database right". A database will qualify for protection if the - [Agency Workers Regulations 2010 - revised guidance](https://www.lawspeed.com/agency-workers-regulations-2010-revised-guidance/) - The Department of Business Innovation and Skills has published revised guidance to the Agency Workers Regulations 2010 addressing a number of minor inconsistencies in the previous version. One key change is in the area of ‘Pay between assignments’ (Regulation 10 or the Swedish Derogation as it is better known). The guidance now makes clear the - [No definition in legislation? – the ordinary meaning applies](https://www.lawspeed.com/no-definition-in-legislation-the-ordinary-meaning-applies/) - A recent case in the Court of Appeal (Owens v Dudley Metropolitan Borough Council) confirms that where a word is undefined in legislation, the courts can look to the ordinary meaning of the word. The case is relatively unconnected to any recruitment issues, as it concerned legislation relating to pensions for teachers in which the - [Agency Workers Regulations 2010 - addressing the misinformation](https://www.lawspeed.com/agency-workers-regulations-2010-addressing-the-misinformation/) - There are a number of myths that persist surrounding the Agency Workers Regulations 2010 (“AWR”) and workers who operate through their own personal service company (“PSC”). The first and most prevalent misinformation concerns the use of IR35 tests to establish that an individual is not an agency worker. This is based on the assumption that - [Umbrella Companies, the AWR & the Conduct Regulations](https://www.lawspeed.com/umbrella-companies-the-awr-the-conduct-regulations/) - Employment umbrellas fall within the definition of an Employment Business within the Employment Agencies Act 1973 and will also be temporary work agencies under the Agency Worker Regulations 2010 (“AWR”). However, the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“Conduct Regulations”) largely do not apply as they do not offer work finding services. - [Union’s pressure on Government set to reduce employees' pay](https://www.lawspeed.com/unions-pressure-on-government-set-to-reduce-employees-pay/) - The passing of the Agency Worker Regulations 2010 (“AWR”) through parliament was greatly influenced by union pressure on the Government. These regulations are now set to come into force in October 2011. The AWR creates new rights for agency workers to receive the same pay and working conditions as an employee who is directly engaged - [Lawspeed's Agency Workers Regulations seminar](https://www.lawspeed.com/lawspeeds-agency-workers-regulations-seminar/) - Our seminar series on the Agency Workers Regulations continues on the 12th July and the 13th September. We have adapted the normal seminar format to create an interactive forum with a strong emphasis on audience participation, providing attendees with the opportunity to put forward their questions, concepts and ideas in addition to receiving careful and considered - [Potential changes to VAT charging for agencies](https://www.lawspeed.com/potential-changes-to-vat-charging-for-agencies/) - A recent case between Reed Employment Limited and HMRC has the potential to open the flood gates to claims from agencies for overpaid VAT, and a change to the VAT landscape going forwards. Until 2009, employment businesses were able to gain the benefit of a Staff Hire Concession allowing for VAT not to be chargeable - [Agency Workers Regulations 2010 (“AWR”) & Teachers](https://www.lawspeed.com/agency-workers-regulations-2010-awr-teachers/) - In the period leading up to the publication of the draft AWR guidance, BIS had indicated that it would be preparing specific advice for the teachers and the agencies that supply them. With the final guidance now published it has transpired that separate guidance will not be published and instead there are a few paragraphs - [IR35 victory for contractor](https://www.lawspeed.com/ir35-victory-for-contractor/) - It has been reported this month that a contractor has won a significant victory in an IR35 case, in which the contractor escaped a tax bill of as much as £50,000. Although the contractor was successful in appealing against the determination, the sheer size of the figures involved means that it is perhaps worthwhile revisiting the - [‘Modern Workplaces’ consultation published](https://www.lawspeed.com/modern-workplaces-consultation-published/) - On 17th May 2011, the Department for Business, Innovation and Skills published a new consultation entitled ‘Modern Workplaces’. The consultation focuses on the Government’s plans for flexible, family-friendly employment practices. There are four key elements covered in the consultation: a system of flexible parental leave, a right for all employees to request flexible working, changes - [Ban of Twitter in the workplace](https://www.lawspeed.com/ban-of-twitter-in-the-workplace/) - The Telegraph reported this month that 48% of companies have now banned Twitter in the workplace. This would appear to be management responding to (a) the impact on productivity that social media distractions can cause; and (b) the fear that employees may post inappropriate content. Whilst technical measures can be taken to ensure that employees - [Negligent references](https://www.lawspeed.com/negligent-references/) - A recent High Court case has highlighted that giving negligent references or statements about former or departing employees to their potential new employers can result in claims and awards of compensation. You should be careful when giving references or indeed making general statements about former employees. It is well established in case law that an - [Drugs in the workplace](https://www.lawspeed.com/drugs-in-the-workplace/) - We have recently been asked a number of questions about drug testing of employees and agency workers. There are numerous and complex legal issues to bear in mind, and we provide here a brief overview. Drug abuse in the workplace Abuse of controlled substances is of course a criminal offence, and it would appear to - [Notice takes effect the day after it is given](https://www.lawspeed.com/notice-takes-effect-the-day-after-it-is-given/) - The date on which notice is given to an employee is important as it will determine when the employment will terminate, which in turn will be the date at which the 3 months time limit to bring a claim at the Employment Tribunal will begin to run. This may be of particular relevance where the - [Whistleblowing – what employers should know](https://www.lawspeed.com/whistleblowing-what-employers-should-know/) - ‘Whistleblowing’ is the figurative word used for instances where an employee or worker discloses suspected occurrences of wrongdoing or malpractice within their employer organisation. An individual who does ‘blow the whistle’ will be protected in legislation from being dismissed or suffering a detriment as a result of their disclosure and claims in this area can - [Back to basics](https://www.lawspeed.com/back-to-basics/) - With the pending application of the Agency Workers Regulations, it yet again shows the importance of knowing your legal obligations and understanding what is expected of your business when working in the recruitment industry. This article should provide you with a summary of some of the important things to remember when dealing with clients and - [AWR final guidance published today](https://www.lawspeed.com/awr-final-guidance-published-today/) - The Department of Business, Innovation and Skills (BIS) has published the final version of the guidance to accompany the Agency Workers Regulations 2010 today. - [Costs in the employment tribunal – a difficult prospect](https://www.lawspeed.com/costs-in-the-employment-tribunal-a-difficult-prospect/) - A recent case in the Employment Appeal Tribunal (“EAT”) has highlighted the difficulties faced by respondents in getting a costs order against an unsuccessful claimant. The case of HCA International ltd v May-Beheemul [2010] was regarding an employee who resigned and subsequently lodged claims of disability discrimination, constructive unfair dismissal and detriment on the grounds - [Employee posting offensive remarks on Facebook](https://www.lawspeed.com/employee-posting-offensive-remarks-on-facebook/) - The Employment Tribunal has heard another case involving an employee’s use of a social networking websites which resulted in dismissal. The matter of Preece v J D Wetherspoon plc concerned a pub manager working for Wetherspoons at the Ferry Boat Pub in Cheshire. Her contract of employment clearly set out that she could be dismissed - [Minimum wage increase](https://www.lawspeed.com/minimum-wage-increase/) - The Government has announced that the national minimum wage for adults will increase on 1st October 2011 from £5.93 to £6.08 per hour – an increase of 15p.The increase is 2.5% below the rate of inflation. Vince Cable (the Business Secretary) commented that more than 890,000 of Britain's lowest-paid workers will gain from these changes, that - [The future of the GLA - is it under consideration?](https://www.lawspeed.com/the-future-of-the-gla-is-it-under-consideration/) - There have been recent reports suggesting the possibility of the Employment Agency Standards inspectorate at BIS being merged with the Gangmasters Licensing Authority (“GLA”). It would not appear that there are any firm proposals for this to happen, just an announcement by employment relations minister, Ed Davey, that government is to review workplace rights, compliance - [When does a notice of dismissal take effect?](https://www.lawspeed.com/when-does-a-notice-of-dismissal-take-effect/) - If I give an employee three months notice this afternoon, when will it end? Does the notice period include today, the day I give the notice, or does it start tomorrow? The answer may be significant in determining when the employees last day of work is and therefore the period in which they can bring - [Avoid temptation to over compensate because of pregnancy or child birth](https://www.lawspeed.com/avoid-temptation-to-over-compensate-because-of-pregnancy-or-child-birth/) - A recent case in the Employment Appeal Tribunal (“EAT”) has highlighted that employers must take care when using selection criteria in a redundancy exercise, and be particularly conscious not to unfairly favour an employee on maternity leave in comparison to other employees. The case (Eversheds Legal Services Ltd v Belin (2011)) involved a male employee, - [Is the use of a photo on a CV a help or a hindrance?](https://www.lawspeed.com/is-the-use-of-a-photo-on-a-cv-a-help-or-a-hindrance/) - The inclusion of a candidate’s photo on a CV is not a practice which is widely used in the UK unless specifically required by a hirer or recruiter. This is different from some other countries where it is normal practice. This begs the questions should we be including photos on CV’s? Are there benefits to - [Frequently asked questions - holidays](https://www.lawspeed.com/frequently-asked-questions-holidays/) - The holiday spirit has been in full swing in recent weeks and here at Lawspeed we have noticed an increase in enquiries about the subject. Therefore, we thought it would be useful to include some general points about holidays in this month’s AgencyZone: How much is the holiday entitlement? From April 2009, the rate increased - [HR v FD – the AWR divide](https://www.lawspeed.com/hr-v-fd-the-awr-divide/) - Commenting on the prospect of final guidance being issued soon on the Agency Workers Regulations, Ravi Murphy, director of the recruitment law specialist Lawspeed, said “the way in which the new laws are explained in the guidance will be of key importance for agencies and hirers alike and may reduce friction within hirer organisations”. She - [MSC Legislation poses a very real threat to agencies](https://www.lawspeed.com/msc-legislation-poses-a-very-real-threat-to-agencies/) - The announcement in the press that a recruitment agency and its directors are being pursued for £10 Million by HMRC under the Managed Service Companies (“MSC”) legislation acts as a stark warning that by working with companies falling within the scope of this legislation, agencies are exposing themselves to significant financial and reputational risk. The - [BIS praises ARC’s “extremely valuable” meeting on the Agency Workers Regulations guidance](https://www.lawspeed.com/bis-praises-arcs-extremely-valuable-meeting-on-the-agency-workers-regulations-guidance/) - Recruitment consultants and HR managers seized the opportunity to influence government guidance on the Agency Workers Regulations (AWR) 2010 in an interactive meeting hosted by the Association of Recruitment Consultancies (ARC) and key representatives from the Department for Business, Innovation and Skills (BIS) on 12 April. The draft guidance was issued on 4 April, with - [Women in the boardroom](https://www.lawspeed.com/women-in-the-boardroom/) - On 24 February 2011, Lord Davies reported on his independent review on the subject of women in the boardroom. Current trends show that in the top FTSE 100 companies women hold only 12.5% of the directorships. Lord Davies is recommending in his report for government that UK listed companies in the FTSE 100 should be - [Budget 2011](https://www.lawspeed.com/budget-2011/) - Speculation about what George Osborne had in store for post-recession UK ended with the announcement of the budget on Wednesday 23 March 2011. For recruiters, the highlights of the budget are likely to be as follows: Corporation tax is to be reduced in April 2011 by 2% and will continue to fall by 1% for - [When is it OK to positively discriminate?](https://www.lawspeed.com/when-is-it-ok-to-positively-discriminate/) - As a general rule positive discrimination (whereby an individual is favoured because they have a certain characteristic e.g. are of a particular race) is still in most cases discrimination because by nature this involves treating persons who do not have that characteristic less favourably. There are some areas of discrimination law where very limited positive - [Bribery Act guidance published](https://www.lawspeed.com/bribery-act-guidance-published/) - The Government has now published its long awaited guidance on the Bribery Act. The legislation has been delayed by the guidance, and will now come into force on 1st July 2011, leaving organisations with 3 months to implement any appropriate policies and procedures. The Act creates specific offences of ‘offering’ or making a bribe, of - [Workers registration scheme to close](https://www.lawspeed.com/workers-registration-scheme-to-close/) - The government has announced that the workers registration scheme will close after 30th April 2011, having been in operation for 7 years. The scheme currently requires that nationals of the A8 countries, namely the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia, register with the Home Office if working for an employer in - [Two cases on bonuses](https://www.lawspeed.com/two-cases-on-bonuses/) - Two cases from the end of last year are worth noting for their conclusions as regards the payment of bonuses. In Humphreys v Norlisk Nickel International the claimant, an economist, was hired on a one year contract to provide the Respondent with economic advice relating to the mining industry. At the conclusion of the first - [Two Employment Tribunal cases of note](https://www.lawspeed.com/two-employment-tribunal-cases-of-note/) - 1. Employment Status The EAT has determined a new case on employment status and confirmed the position that where there are no mutual obligations to accept and offer work on either party; there is no employment relationship. In the case of Knight v BCCP, a taxi driver working for a taxi firm had his contract - [Paternity leave changes](https://www.lawspeed.com/paternity-leave-changes/) - Have you got any employees who have children due on or after 3rd April 2011? If you do then you could receive a request for additional paternity leave. Additional paternity leave is a period of up to 6 months which can be taken by the father of a child or the mother’s partner in order - [Changes to the powers of the Advertising Standards Authority](https://www.lawspeed.com/changes-to-the-powers-of-the-advertising-standards-authority/) - From 1st March 2011, the Advertising Standards Authority (“ASA”) is able to take action against companies which publish misleading claims on their own websites and any other spaces they control, for example on social media websites. Prior to March 2011, the ASA was only able to monitor paid for space. This extension of power is - [Employment Tribunal reform](https://www.lawspeed.com/employment-tribunal-reform/) - A recent survey by the CIPD has underlined how important the recent government consultation on the reform of the Employment Tribunals system and ‘resolving workplace disputes’ will be. According to the figures in their ‘Conflict Management’ report published earlier in March more than two out of three employers (69%) believe that they have no effective - [AWR draft guidance published today – more work required says the ARC](https://www.lawspeed.com/awr-draft-guidance-published-today-more-work-required-says-the-arc/) - Commenting on the draft guidance, which the Department of Business Innovation and Skills (BIS) is due to publish for comment today, Adrian Marlowe, Chair of the Association of Recruitment Consultancies (ARC), said "BIS has worked very hard to produce guidance that is intended to help everyone understand the Regulations, and the ARC has provided significant - [Lawspeed announces seminars following AWR guidance](https://www.lawspeed.com/lawspeed-announces-seminars-following-awr-guidance/) - The long awaited guidance to the Agency Workers Regulations is to be published in draft form today, and the final guidance is expected to be published early in May. Ravi Murphy, a Director of Lawspeed, in announcing a series of seminars to be held on the subject, said , “Many organisations have been waiting for - [The ARC announces AWR guidance meeting with Dep’t of BIS](https://www.lawspeed.com/the-arc-announces-awr-guidance-meeting-with-dept-of-bis/) - The Association of Recruitment Consultancies (ARC) has announced that it will be holding a free public meeting and presentation with key representatives of the Department of Business, Innovation and Skills (BIS) at the BIS Conference Centre on 12th April 2011 to discuss the proposed Agency Workers Regulations guidance. Open to all recruitment businesses and hirers - [The OTS proposes changes to IR35](https://www.lawspeed.com/the-ots-proposes-changes-to-ir35/) - The Office of Tax Simplification (OTS) has released its review of small business taxation including IR35. Its proposals are aimed at aiding small businesses by reducing the complexity and uncertainty of the tax system. The report’s proposals include the merging of Income Tax with National Insurance, and three options for improvement to IR35. IR35, long - [IR35 victory for contractor in tax tribunal](https://www.lawspeed.com/ir35-victory-for-contractor-in-tax-tribunal/) - A limited company contractor has won an IR35 case in the first-tier tax tribunal. Mr Fitzpatrick provided design services to Airbus for the A380 project. Airbus had a contract with the principal contractor, which in turn had contracted with Mr Fitzpatrick’s own company. HMRC claimed that his company should be liable under the IR35 rules. - [Bribery Act 2010](https://www.lawspeed.com/bribery-act-2010/) - The government recently announced that it was delaying for a second time the implementation of the Bribery Act 2010 which was originally intended for October 2010, then pushed back to April 2011. It has now been delayed again as the Ministry of Justice acknowledges that it has passed its own January deadline for publication of - [Abolition of compulsory retirement age – an update](https://www.lawspeed.com/abolition-of-compulsory-retirement-age-an-update/) - Following our article in January’s AZ newsletter, the draft regulations to abolish the default retirement age of 65 have been laid before parliament. The Regulations will come into force on 6 April 2011. The last ‘notice of intended retirement’ can be given up until 5 April 2011* for employee’s who have attained or will attain - [First conviction of corporate manslaughter](https://www.lawspeed.com/first-conviction-of-corporate-manslaughter/) - The Corporate Manslaughter and Corporate Homicide Act 2007 came into force in 2008 and introduced a new offence of corporate manslaughter where the gross negligence of a company’s senior management results in death. On 15 February 2011, Cotswold Geotechnical Holdings was found guilty of corporate manslaughter, this being the first conviction under the Act. This - [Right to request time off for training limited to large employers](https://www.lawspeed.com/right-to-request-time-off-for-training-limited-to-large-employers/) - The government has announced that it will not be proceeding with plans to extend the right for employees to ask for time off for training to all employers in April 2011 as planned. The right to ask for time off for training applies to employees with 26 weeks continuous service. This right is similar to - [Freedoms Bill – Changes to CRB checks](https://www.lawspeed.com/freedoms-bill-changes-to-crb-checks/) - The Freedoms Bill has had its first reading in parliament. The Bill has a wide range covering issues relating to fingerprinting, DNA, CCTV and even wheel clamping. However, it also proposes a review of the current criminal records and vetting and barring regime, in order to “scale it back to common sense levels”. The changes - [Costs in the Employment Tribunal](https://www.lawspeed.com/costs-in-the-employment-tribunal/) - In a recent judgement of the Employment Appeal Tribunal (‘EAT’) it was decided that a claimant who accepted a settlement offer on the morning before the case was due to start, but had rejected the exact same settlement offer some months earlier, had acted unreasonably. The EAT was therefore justified in awarding costs to the - [Employer pays £13,000 to former employee who had been dismissed for theft](https://www.lawspeed.com/employer-pays-13000-to-former-employee-who-had-been-dismissed-for-theft/) - An employer has paid £5,000 in compensation and £8,000 court costs to a former employee after he paraded the employee through the streets with a sign around his neck declaring he was a thief. The employee had admitted he had stolen money from his employer by writing a company cheque to himself for £845 and - [Criticising an employee’s performance will not be defamatory if it is not malicious](https://www.lawspeed.com/criticising-an-employees-performance-will-not-be-defamatory-if-it-is-not-malicious/) - A former employee who brought defamation proceedings against the BBC for allegedly making defamatory comments during a capability review has seen his case dismissed by the High Court. So, what is defamation? Defamation concerns the publication of materials which result in a loss of trade or causes a reasonable person to think less of an - [Hong Kong company liable for unfair dismissal and discrimination in the UK](https://www.lawspeed.com/hong-kong-company-liable-for-unfair-dismissal-and-discrimination-in-the-uk/) - A recent case identified a Hong Kong company as liable for acts of discrimination and unfair dismissal of an employee that they had seconded to a third party in London for an indefinite period. The usual legal test applied to such situations involves consideration of two factors: whether the employer carried on business in England - [VAT increase](https://www.lawspeed.com/vat-increase/) - On the 4th January 2011 the rate at which VAT is charged increased from 17.5% to 20%. Effectively for recruiters, this means that the cost of your service has also increased by 2.5%. This is something that may not be welcomed by hirers, particularly those who operate in non VAT charging sectors such as the - [Age discrimination may be justifiable on grounds of costs to an employer](https://www.lawspeed.com/age-discrimination-may-be-justifiable-on-grounds-of-costs-to-an-employer/) - An employee was unsuccessful in his claim of age discrimination when he sought to argue that his employer had rushed through the redundancy process to be able to dismiss him before he reached his 50th birthday. The employee would have gained extra benefits upon redundancy once he reached 50 years of age. It was decided - [The concept of a compulsory retirement age is to be abolished](https://www.lawspeed.com/the-concept-of-a-compulsory-retirement-age-is-to-be-abolished/) - The coalition government has confirmed that the default retirement age of 65 is to be abolished on 1 October 2011. This means that the last date an employer can give notice of intention to retire an employee who is approaching or has reached their 65th birthday is 30 March 2011. It will also be possible - [Sexual harassment in the work place – or on live TV?](https://www.lawspeed.com/sexual-harassment-in-the-work-place-or-on-live-tv/) - The sacking in January of Andy Gray the football commentator by Sky Sports has brought the issue of sex discrimination into the news again. The allegations against Mr Gray, which have been widely documented by the media, concern comments made to his co-presenter regarding the competency of a female assistant referee and remarks directed towards - [New shared parental leave arrangements](https://www.lawspeed.com/new-shared-parental-leave-arrangements/) - The coalition government has announced that it will begin a consultation process into extending flexible parental leave to allow both parents to enjoy flexible working in the period following the birth of a child. The coalition has also confirmed that it will continue with the introduction of the Additional Paternity Leave Regulations 2010 that were - [Changes in statutory payments and awards](https://www.lawspeed.com/changes-in-statutory-payments-and-awards/) - The government has announced an increase in the maximum weekly wage for calculating redundancy payments, in the amounts that can be awarded by an employment tribunal where an employee is unfairly dismissed and also in various statutory payments. When calculating a statutory redundancy payment or the amount that a worker is entitled to as their - [Kate, William, a royal wedding and bank holidays](https://www.lawspeed.com/kate-william-a-royal-wedding-and-bank-holidays/) - It has been announced that the royal wedding will take place on Friday 29th April 2011 and in order that we may all celebrate this day will be a public holiday. This date is the Friday after Easter and in the same week as Easter Monday, meaning that many people will work just a three - [Liability for a poor reference](https://www.lawspeed.com/liability-for-a-poor-reference/) - The Employment Appeal Tribunal judgement in Bullimore v Pothecary Witham Weld explored who is liable when a bad reference has been given. Ms Bullimore brought proceedings against PWW, a firm of solicitors, which were eventually settled out of the Employment Tribunal by way of a compromise agreement. Ms Bullimore went on to work for a - [Longer wait for unfair dismissal claims?](https://www.lawspeed.com/longer-wait-for-unfair-dismissal-claims/) - It has recently been suggested that there could be a change in the law so that employees will be required in most cases to have two years continuous service in order to bring a claim for unfair dismissal. Currently employees are required to have just one year of continuous service, unless the dismissal is due - [Court rejects review of new travel expenses law](https://www.lawspeed.com/court-rejects-review-of-new-travel-expenses-law/) - A judicial review into the Government’s decision to stop travel expenses for journeys to a temporary place of work from counting towards the calculation of the National Minimum Wage has been rejected today by the Administrative Court. Mr Justice Kenneth Parker ruled that the Government’s proposed legislative amendment to the National Minimum Wage Regulations was - [Consultation for unified Courts and Tribunals](https://www.lawspeed.com/consultation-for-unified-courts-and-tribunals/) - A consultation has been launched by the Ministry of Justice on whether to merge the Courts service and the Tribunals service to create one single organisation. The new organisation would include the Employment Tribunals service and the Employment Appeal Tribunal. The proposed name of such organisation is ‘Her Majesty’s Courts and Tribunals Service’. The legal - [Equality Act Code of Practice published](https://www.lawspeed.com/equality-act-code-of-practice-published/) - The Equality and Human Rights Commission (EHRC) has published three Codes of Practice on the Equality Act 2010 which came into force in October 2010. The Codes of Practice cover three areas: Equal Pay Employment Services, Public Functions and Associations. The Codes of Practice provide guidance to organisations about the provisions in the Equality Act - [Avoiding scam claims in job applications](https://www.lawspeed.com/avoiding-scam-claims-in-job-applications/) - Unfortunately, there are a minority who seek to abuse anti-discrimination legislation by bringing false claims in the Employment Tribunals. These scams usually focus on job applications and the scam operates by an individual submitting two job applications which only differ on particular characteristics. For example, one application has a typical Anglo-Saxon name, and the other - [Employment Tribunal appeals only on a point of law](https://www.lawspeed.com/employment-tribunal-appeals-only-on-a-point-of-law/) - A recent case serves as a reminder that you cannot appeal to the Employment Appeal Tribunal (‘EAT’) against a decision of an Employment Tribunal, unless it is on a point of law only. The EAT will not hear an appeal which relates to a disputed fact in a case. In this case, an employee who - [Bonus excluded upon termination of employment](https://www.lawspeed.com/bonus-excluded-upon-termination-of-employment/) - The Court of Appeal has ruled that an employer does not have to include a bonus in payments made to an employee when their employment ends if the contract allows this. In this case the contract allowed for a bonus to be paid after 12 months of employment and stated ‘you must be employed by - [Judicial review of proposed NMW changes](https://www.lawspeed.com/judicial-review-of-proposed-nmw-changes/) - With many lower paying agencies and umbrellas worried about expenses and the National Minimum Wage (NMW), the Cordant Group PLC has lodged a judicial review. The application challenges the proposed amendments to NMW legislation due to come into effect on 1st January 2011. The amendments will prevent travel expenses from counting as income for the - [EU says “non” to increased maternity pay](https://www.lawspeed.com/eu-says-non-to-increased-maternity-pay/) - Employers and recruiters can breathe a sigh of relief as the EU Council has rejected proposals for the right to 20 weeks’ fully paid maternity leave. Currently in the UK, employees and qualifying agency workers are entitled to up to 39 weeks of maternity leave, the first 6 weeks of which is to be paid - [Data Protection penalties issued by the ICO](https://www.lawspeed.com/data-protection-penalties-issued-by-the-ico/) - Recruitment company hit as, for the first time, the Information Commissioner’s Office (ICO) exercises new powers to serve penalties for serious data protection breaches. We reported earlier this year that the enforcement powers of the ICO had been extended. The new powers allow the ICO to issue a penalty notice up to the value of - [ARC welcomes government plan to end "gold-plating"](https://www.lawspeed.com/arc-welcomes-government-plan-to-end-gold-plating/) - The Association of Recruitment Consultancies (ARC) welcomes the Government’s commitment to end “gold plating” announced by the Business Secretary Vince Cable on 15th December. Adrian Marlowe, Chairman of the ARC commented "This is a very welcome move by the Government. No one is asking for favours, all that is needed is for the Government to help - [The ARC to work with BIS on AWR guidance](https://www.lawspeed.com/the-arc-to-work-with-bis-on-awr-guidance/) - The Association of Recruitment Consultancies (ARC) has reported that it has been invited by the Department of BIS to work with it on drafting promised guidance for the Agency Workers Regulations. The Department has indicated that it plans to issue guidance as soon as possible on the Regulations that are due to apply from October - [Government plans to tax EBTs](https://www.lawspeed.com/government-plans-to-tax-ebts/) - The announcement made this week states that a new Finance Bill will introduce the measures in April 2011. The draft rules include anti-forestalling measures to stop upfront payments or arrangements being made from 9th December and before the legislation takes effect. According to the Treasury, the legislation will “ensure that where a third party makes - [Advising an employee of summary dismissal](https://www.lawspeed.com/advising-an-employee-of-summary-dismissal/) - A recent case has reminded employers that when they are communicating a decision to dismiss an employee for gross misconduct without notice, the best course of action is to inform them of that decision in a face-to-face meeting and hand them a letter confirming the decision there and then. If an employer has to communicate - [Agency worker not an employee](https://www.lawspeed.com/agency-worker-not-an-employee/) - The Court of Appeal has decided that Mr Tilson, who was employed by an umbrella company and provided services via an agency to the end hirer (Alstom), was not an employee of Alstom. Mr Tilson was trying to bring a claim of unfair dismissal against Alstom. This case is particularly interesting because there were elements - [ARC welcomes positive EAS annual report outcome](https://www.lawspeed.com/arc-welcomes-positive-eas-annual-report-outcome/) - Referring to the publication by the Department of BIS on 25th November of its Employment Agency Standards (EAS) 2009-2010 Annual Report the Association of Recruitment Consultancies (ARC) pointed to the largely positive results. Although the number of complaints is up by 9%, the report nevertheless shows an improving position. The number of inspections in high - [Conduct Regulations (Amendment) 2010](https://www.lawspeed.com/conduct-regulations-amendment-2010/) - This note is intended to clarify the recent amendments that have been made to the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“the Regulations”). The 2010 amendments came into force on 1 October, and reduced many of the administrative burdens on Employment Agencies, who introduce candidates for direct hire by clients. The changes - [The Swedish Derogation is flawed, claims Lawspeed](https://www.lawspeed.com/the-swedish-derogation-is-flawed-claims-lawspeed/) - Many agencies are actively considering how best to approach the Agency Workers Regulations 2010, which provide agency workers with the rights to equal pay and other rights from October 2011. One option is to use R.10, the so called Swedish Derogation, but the rules are flawed, says the recruitment law specialist Lawspeed. The rules provide - [Latest ET stats published - claims up](https://www.lawspeed.com/latest-et-stats-published-claims-up/) - The latest figures show that the number of claims are up by 56%, a staggering increase, but the number of cases disposed of in the year (i.e. hearings) remain similar to the previous year. Indications are that the types of claim on the increase are for unlawful deductions from wages and under the Working Time - [Using Social Media – German ban](https://www.lawspeed.com/using-social-media-german-ban/) - The German Federal Cabinet is currently proposing to pass a law which will amongst other things prohibit employers from using social networking sites to find out about prospective employees. But how often do you search the internet to find out more about prospective staff and their social lives and is this something that could come - [Can you stop staff from discussing salaries?](https://www.lawspeed.com/can-you-stop-staff-from-discussing-salaries/) - The answers to this question will change on 1st October 2010 when the Equality Act begins to come into force. The purpose of this Act is largely to consolidate existing discrimination law, bringing it in effect all into one Act, and therefore could be easily overlooked. However there are some new features that could have - [Licensing Debate](https://www.lawspeed.com/licensing-debate/) - The issue of whether recruitment companies should be licensed remains one that will probably remain open for consideration for years to come. Clearly some agencies want it and others do not, and the idea of driving out so called "rogue agencies" is one that obviously appeals to all legitimately run operations. However setting up a - [Lawspeed extends working hours](https://www.lawspeed.com/lawspeed-extends-working-hours/) - Lawspeed is pleased to announce that it is extending its working hours in order to meet current demand. Ravi Murphy, a director of the company, said “times are still difficult for many recruiters and they need to be able to access the right advice as and when an issue arises. To further facilitate the delivery of timeous responses in - [ARC welcomes PM's comments on agency worker rights](https://www.lawspeed.com/arc-welcomes-pms-comments-on-agency-worker-rights/) - In response to the Prime Minister’s indication that a review should be on the basis of how the existing laws affect ease of employment, Adrian Marlowe, Chairman of the ARC said “we agree that the issue should be looked at in the round as well as in respect of the Agency Workers Regulations (AWR). There - [Reviewing your contracts properly](https://www.lawspeed.com/reviewing-your-contracts-properly/) - Clients regularly come to us with their client’s terms and say ‘I’ve had a look through, largely it’s fine but can you just check I haven’t missed anything?’ Whilst we applaud the attempts at getting involved in the more gritty aspects of your contracts, often these contracts are anything but fine. We thought we would - [Business waiting for Govt to grasp the AWR nettle](https://www.lawspeed.com/business-waiting-for-govt-to-grasp-the-awr-nettle/) - The coalition government’s response on 5th July 2010 to a House of Commons question as to their intentions for the Agency Workers Regulations, namely whether they have plans to amend or replace the Regulations, was far from definitive. Ed Davey the (Liberal Democrat) Minister for Employment Relations gave a written answer that indicated that the - [Recruitment law update](https://www.lawspeed.com/recruitment-law-update/) - It has been a little while since the last recruitment law update in AgencyZone. We present here a summary of recent legal developments that may affect recruitment businesses and their clients. The new right for time off to train or study. Employees now have a statutory right to request time off work for study or - [Minimise your MSC risk. Free and easy](https://www.lawspeed.com/minimise-your-msc-risk-free-and-easy/) - The Managed Service Companies (MSC) legislation can expose recruitment companies to the transfer of the tax debt accrued by service providers, such as umbrella companies. Agency directors may be personally liable. Lawspeed’s Service Provider Audit (SPA) service has been helping recruitment businesses to minimise their exposure under the MSC legislation, free of charge, for over - [ARC urges change to ET rules for dubious claims](https://www.lawspeed.com/arc-urges-change-to-et-rules-for-dubious-claims/) - Every year employers and agencies face claims that have no real merit, yet employers choose to pay out rather than incur the cost of defending the action. The reason for this acquiescence was the subject of a recent networking meeting held by the Association of Recruitment Consultancies, which was attended by agencies and end users. - [ARC seeks review of regulations and VAT concession](https://www.lawspeed.com/arc-seeks-review-of-regulations-and-vat-concession/) - The Budget, as we now know, has set the economy on a determined course of austerity. The public sector is singled out for substantial reductions, while there is a focus on the private sector which is seen by the Chancellor as the best way to stimulate growth. “The combination of these factors offers substantial opportunities - [New EU Directive for Self Employed](https://www.lawspeed.com/new-eu-directive-for-self-employed/) - Following the Agency Workers Regulations, further EU legislation is on the way that is aimed at giving more rights to self-employed workers and their 'assisting spouses'- including the right to maternity leave for the first time - under new legislation endorsed by EU governments on June 7, 2010. 'Assisting spouses' means those who provide effective - [Fears exaggerated over possible union walk out on](https://www.lawspeed.com/fears-exaggerated-over-possible-union-walk-out-on/) - Fears are exaggerated that if Business Secretary Vince Cable changes the Agency Workers Regulations in a bid to simplify them for employers, infuriated unions would walk away from the 12-week deal and insist on equal rights from day one. This is the view of Adrian Marlowe, Chairman of the Association of Recruitment Consultancies (ARC) in - [Agency Workers Regulations – what do hirers want?](https://www.lawspeed.com/agency-workers-regulations-what-do-hirers-want/) - Since the finalisation of the Agency Workers Regulations earlier this year there has been a flurry of activity to gear up for the new rules. However these regulations do not come into force until October 2011 and there is no legal reason why they cannot be modified, providing that they meet the requirements of the - [The ARC calls for coalition to cut back excessive legislation](https://www.lawspeed.com/the-arc-calls-for-coalition-to-cut-back-excessive-legislation/) - The new coalition Conservative/Liberal Democrat government should take the opportunity to cut back the excess of employment regulation created by the last Labour Government. That is the view of Adrian Marlowe, Chairman of the Association of Recruitment Consultancies(ARC). He says: “Employers and recruitment agencies have been flooded with legislation and regulations which have reportedly cost - [ARC to continue fight for fairer Agency Worker regulations](https://www.lawspeed.com/arc-to-continue-fight-for-fairer-agency-worker-regulations/) - Urgent update on the Agency Workers Regulations The Association of Recruitment Consultancies (ARC) has decided not to pursue action for a judicial review of certain parts of the Agency Workers Regulations. This is purely because of the tight three-month timescale prescribed by law. Although ARC received persuasive advice from Queen’s Counsel that the case for - [Urgent update on the Agency Workers Regulations](https://www.lawspeed.com/urgent-update-on-the-agency-workers-regulations/) - The Association of Recruitment Consultancies (ARC) has obtained a written opinion from leading Counsel that some of the Agency Workers Regulations that implement the EU Agency Workers Directive and which were laid before the recently dissolved Parliament in January, are of questionable legality and should be challenged. These Regulations overall provide agency workers with the - [Common employment law issues with social media](https://www.lawspeed.com/common-employment-law-issues-with-social-media/) - Whilst new social media can be utilised effectively to improve your business, it can also create a lot of damage too. The TUC famously referred to Facebook’s many profiles as ‘3.5 million HR accidents waiting to happen’. You don’t want you company being dragged through the gutter following a slur on an employee’s Facebook page. - [Rolled up Holiday Pay](https://www.lawspeed.com/rolled-up-holiday-pay/) - Is it legal to ‘roll up’ holiday pay for temporary workers? What is the best way to distribute holiday pay to temporary workers? Many of our clients are confused on this issue, believing that paying holiday pay on a “rolled up” basis (that is, by including a holiday pay element in the workers hourly or - [The Budget - Some useful measures but lack of long term planning](https://www.lawspeed.com/the-budget-some-useful-measures-but-lack-of-long-term-planning/) - There is nothing new in the Budget – that seems to be the general verdict of the media and political and economic commentators of Chancellor Alistair Darling’s latest offering. But is this assessment too glib? Certainly there are none of the headline grabbing moves that all pre-election Governments are tempted to take. But clearly a - [ASDA deal not model solution](https://www.lawspeed.com/asda-deal-not-model-solution/) - Commenting on recent reports about the deal struck between supermarket chain ASDA and the trade union Unite in advance of the Agency Workers Regulations that are due to come into force next year, the Association of Recruitment Consultancies (ARC) urges caution against adopting the model ahead of Regulation. ASDA has won kudos for its agreement - [ARC challenges AWR](https://www.lawspeed.com/arc-challenges-awr/) - ARC challenges Government Agency Workers Regulations Part of the draft regulations to bring the Agency Workers Directive into UK law may not be legal, according to inquiries carried out by the Association of Recruitment Consultancies (ARC). The government laid draft Regulations before Parliament in January 2010, following a two part consultation which ended in December - [Modis Research on recruiter value for money](https://www.lawspeed.com/modis-research-on-recruiter-value-for-money/) - Almost three quarters (72%) of employers say that recruiters do not offer value for money, according to research from IT and engineering recruiter Modis. Jim Albert, managing director, at Modis International recently said: “These figures show the reputational issue recruiters have faced in the past remain as persistent as ever. There has been a movement - [Employment status case law update](https://www.lawspeed.com/employment-status-case-law-update/) - In two recent decisions, agency workers supplied by employment businesses have been prevented from claiming employment rights against the end hirer. These decisions should serve as a welcome boost to the industry as clients concerned about employment status will feel that little bit more secure about engaging workers through third party staffing companies. Alstom Transport - [Social Media Networking to become a major recruitment tool](https://www.lawspeed.com/social-media-networking-to-become-a-major-recruitment-tool/) - Social networking may partially replace traditional recruitment methods in the near future and could therefore reduce agency income. This is the view of Stephanie Lee, Sourcing Specialist for European Staffing for Intel Corp UK. Intel is the world's largest semiconductor chip maker, and invented the X86 series of microprocessors that are found in most personal - [Limited companies within AWD Regulations](https://www.lawspeed.com/limited-companies-within-awd-regulations/) - The much anticipated Agency Workers Regulations 2010 were laid before parliament in January. The regulations are intended to give agency workers equal entitlement to pay and leave arrangements as if they had been recruited directly by their hirer, following an EU Directive finalised in December 2008. The Regulations are due to be adapted into law - [Agency Workers Regulations 2010 laid before parliament](https://www.lawspeed.com/agency-workers-regulations-2010-laid-before-parliament/) - The much anticipated Agency Workers Regulations 2010 were laid before parliament in January. The regulations are intended to give agency workers equal entitlement to pay and leave arrangements as if they had been recruited directly by their hirer, following an EU Directive finalised in December 2008. The Regulations are due to be adapted into law - [ARC reports on the Agency Workers Directive Part 2](https://www.lawspeed.com/arc-reports-on-the-agency-workers-directive-part-2/) - The 2nd Consultation on the Agency Workers Directive brings some key issues sharply into focus, says the Association of Recruitment Consultancies. Whilst the overall objective of the Directive itself is to promote flexibility within the workforce, and the Directive recognises the difference between employment and agency work, the translation of the Directive into UK Regulations - [Company opt outs to be retained - 12/11/09](https://www.lawspeed.com/company-opt-outs-to-be-retained-121109/) - Good News The government has published the response to its consultation earlier this year and the good news is that the Limited Company opt-out has not been touched, neither for limited company contractors nor for umbrellas. A change had been widely feared, and so this news is very welcome. Changes are proposed to modelling recruitment - [Departing employees? - protecting client relations](https://www.lawspeed.com/departing-employees-protecting-client-relations/) - Brian, a recruitment consultant, is in the process of being made redundant from an agency. During the redundancy process, unknown to his employers, Brian has been sending details of clients and candidates to his personal email account. He has also set up a limited company with a view to starting up his own competing business. - [ARC wins gold plating argument](https://www.lawspeed.com/arc-wins-gold-plating-argument/) - ARC (the Association of Recruitment Consultancies) today 26thOctober 2009 welcomed news that Government plans to "gold-plate" the Agency Workers Directive in key areas, have been dropped. ARC warned right from the start that adding unnecessary benefits to workers, would have a devastating effect on the recruitment industry and would cost much needed jobs. Adrian Marlowe, - [2nd consultation is published - first impressions not good](https://www.lawspeed.com/2nd-consultation-is-published-first-impressions-not-good/) - The Government has now published its long awaited response to the first consultation on the Agency Workers Directive and the draft regulations they intend to introduce. On first glance it appears that the draft Regulations are far wider than the EU Directive, giving rise to the widely expressed fear that the government is going to - [Delay to Agency Workers Directive a welcome first step](https://www.lawspeed.com/delay-to-agency-workers-directive-a-welcome-first-step/) - Amongst a series of other proposals to delay new laws, the government has announced that it intends to delay implementation of the Agency Workers Directive in the UK until late 2011. However it is understood that the legislation will be laid before Parliament as soon as possible after conclusion of a 2nd consultation which is - [“Vulnerable” Workers Helpline](https://www.lawspeed.com/vulnerable-workers-helpline/) - The government has just announced a telephone helpline for workers called the Pay and Work Rights Helpline. The helpline is set up to give all workers including agency workers easy access to information about their rights. In the accompanying announcements from both government and the REC it is referred to as a “vulnerable workers helpline” - [Periods of sick leave and annual leave coinciding](https://www.lawspeed.com/periods-of-sick-leave-and-annual-leave-coinciding/) - Will and Holly were both sales consultants employed by an agency. In April, they went on holiday together to Goa. Unfortunately, 4 days into their 2 week holiday they both caught a nasty tummy bug and were laid up for the remaining 9 days of the holiday. Upon their return they claimed they were entitled - ['Last in first out' redundancies](https://www.lawspeed.com/last-in-first-out-redundancies/) - As the HR Manager may say – “unfortunately, as you’re aware, the company has to be making cut backs. As you’re the newest member of staff we have decided to make you redundant – last in, first out”.What is wrong with that? Using this approach to redundancies can often appear to be the easiest option. However - [Can you supply to replace workers on strike?](https://www.lawspeed.com/can-you-supply-to-replace-workers-on-strike/) - With job and pay cuts leading to employee unrest, a key topic of conversation in the TUC Conference last week was that of strike action. As this threat increases, you could be contacted to supply replacements as your clients try to complete projects and keep the money coming in. Tempting though it may be to use - [Seminar - Agency Workers Directive Second Consultation – countdown to what?](https://www.lawspeed.com/seminar-agency-workers-directive-second-consultation-countdown-to-what/) - With the Conservatives warning against possible cost to the economy rising to some £40bn over a 10 year period and widespread concern of government overkill ("gold plating"), the Agency Workers Directive has already proved to be the most controversial piece of proposed legislation affecting the recruitment supply industry thus far. Now that the government's actual - [Need for a forensic approach to the AWD](https://www.lawspeed.com/need-for-a-forensic-approach-to-the-awd/) - What the above two articles demonstrate is how easy it is for facts to be misreported and also how important it is that trade representation is accurate and protective of members interests. The press is always keen to whip up a story but it is incumbent upon those acting for the industry to take a - [HR set to hire direct](https://www.lawspeed.com/hr-set-to-hire-direct/) - In an article published in Personnel Today on 4th September the HR Manager of a large hirer of agency workers indicated that once the Directive is in place they intend to hire temps direct from their own internal bank of temp workers. They made it clear that this was not an off the cuff observation but - [Brown bows to union pressure at the TUC conference](https://www.lawspeed.com/brown-bows-to-union-pressure-at-the-tuc-conference/) - Some of you may have read an article from Recruiter.co.uk sent under its email alert scheme headed “Agency workers directive implementation delayed until 2010”, which stated that Gordon Brown has announced that the Directive will be included in the “next parliamentary session”, and therefore cannot be implemented until April 2010. Kevin Greene of the REC - [Employment status](https://www.lawspeed.com/employment-status/) - The case of a limited company contractor who has been able to successfully assert that he was an employee of his client has recently been raising eyebrows across the industry. In Asltrom v Tilson, Mr Tilson, who operated through his own limited company which was acting as a subcontractor, whose principal was being supplied to - [Planned increased in the national minimum wage](https://www.lawspeed.com/planned-increased-in-the-national-minimum-wage/) - From 1st October 2009, the national minimum wage will increase from £5.73 to £5.80 per hour. A recruiter or umbrella company whose rates fall below such levels will be advised to address these matters with clients, unless there is already clear provision within contracts for an increase in rates to account for such costs. Payment - [Holiday pay decision](https://www.lawspeed.com/holiday-pay-decision/) - The position regarding holiday pay for those on long term sick leave has recently been clarified by the European courts. The UK courts had suggested that workers on long terms sick leave should not accrue holiday entitlement, on the basis that they are already on leave. However this has been overruled by the European Court - [Fines imposed for Anti-Competitive activities](https://www.lawspeed.com/fines-imposed-for-anti-competitive-activities/) - As has been seen in the recent case involving the massive fines imposed on a consortium of recruitment businesses called " the Construction Industry Forum”, the penalties for engaging in anti competitive behaviour can be severe . Apart from fines, they can extend in certain circumstances to the disqualification of directors. So what effect could this have on your business? Most of - [Construction industry](https://www.lawspeed.com/construction-industry/) - HMRC has last week announced a consultation on the self employed status of construction workers. It is common within the construction industry for workers to operate via the CIS scheme, which allows for self employed workers to have certain level of tax deducted at source, which depending upon their registration status with HMRC can be - [ARC membership quadruples with legislation message](https://www.lawspeed.com/arc-membership-quadruples-with-legislation-message/) - After weeks of hard work with the Institute of Directors (IOD) the message that we have been attempting to publish that the government intends to massively gold plate the Agency Workers Directive has finally hit the national press. In an article on 23rd July the FT reported on concerns that the government intends to go - [Swine flu and sickness absence](https://www.lawspeed.com/swine-flu-and-sickness-absence/) - The Swine flu pandemic is currently major headline news and having an increasing impact upon the population, there has been a natural increase in the levels of sickness absence and concern. However, the pandemic is leaving both employers and recruiters with a number of questions, for example are you obliged to pay a worker during - [AWD threatens temp to perm fees](https://www.lawspeed.com/awd-threatens-temp-to-perm-fees/) - After a huge battle with recruiters in the middle of this decade the government finally settled on a formula for limiting temp to perm, temp to temp and temp to third party fees (“transfer fees”). You will all no doubt be aware that the rules are set out in Regulation 10 of the Conduct of - [Government massively gold plating AWD says IoD](https://www.lawspeed.com/government-massively-gold-plating-awd-says-iod/) - The Financial Times has today reported on concerns by the Institute of Directors (IoD) that the government is proposing to gold plate the Agency Workers Directive. See article Business warns on agency workers directive. This follows work undertaken by Lawspeed, with the Association of Recruitment Consultancies and the IoD. The orginal article submitted by the IoD to the - [ARC exposes Agency Worker Directive](https://www.lawspeed.com/arc-exposes-agency-worker-directive/) - Government plans to implement the Agency Workers Directive go far beyond the intention of the EU Parliament, warned ARC (Association of Recruitment Consultancies) today (25 June). At a seminar held by the association Adrian Marlowe, Chair of ARC said: “In common with most others, we had thought that the Directive requires the government to implement - [More on the Agency Workers Directive](https://www.lawspeed.com/more-on-the-agency-workers-directive/) - 1. Government proposes to gold plate Agency Worker Directive 2. ARC calls for delay in considering the Agency Workers Directive 3. ARC membership 1. Government proposes to gold plate Agency Worker Directive At Lawspeed's seminar on 24th June Adrian Marlowe, Managing Director, explained that Government plans to implement the Agency Workers Directive go far beyond - [Lawspeed seminar - Agency Workers Directive First](https://www.lawspeed.com/lawspeed-seminar-agency-workers-directive-first/) - Lawspeed Seminar London - Agency Workers Directive First Consultation To accommodate recruiters pressed for time and to reflect current economic constraints we have reduced the costs of this Agency Workers Directive seminar and it will also only be an afternoon session. Please see below for details. Speakers at this seminar will include: Jonathan Djanogly- Shadow - [HMRC announces clampdown on expenses](https://www.lawspeed.com/hmrc-announces-clampdown-on-expenses/) - HMRC have recently released Business Brief (50/09) announcing that they will be clamping down on expenses dispensations. Expenses benefits schemes are commonly used by umbrella companies or employment businesses to legitimately allow a worker to claim travel and subsistence whilst on assignment. However, it is feared such schemes are being abused. HMRC have indicated that - [Consultation on Agency Workers Directive published](https://www.lawspeed.com/consultation-on-agency-workers-directive-published/) - The government has finally published (8th May 2009) its long awaited consultation on new rights for agency workers, following the Agency Worker’s Directive enacted in Europe in December 2008. Click here to view the consultation document and see subsequent articles in left hand column. The proposal is that agency workers should have “at least” the same - [Employment rights for contractors](https://www.lawspeed.com/employment-rights-for-contractors/) - Clients are becoming increasingly concerned about possible claims for employment rights from limited company contractors and temporary workers supplied through agencies. Evidence of this may be seen in agreements issued by clients that require the agency to provide indemnities against such claims. These indemnities are designed to cover all awards and costs incurred in the - [Lawspeed launches membership organisation](https://www.lawspeed.com/lawspeed-launches-membership-organisation/) - New membership body for the recruitment industry – ARC - vows to take proactive stance Visit: www.arc-org.net. As the economic downturn takes hold, and with a number of legislative measures and government proposals on the table that threaten to have a significant impact, now is the time when the recruitment sector needs strong industry representation - [Government announces consultation](https://www.lawspeed.com/government-announces-consultation/) - The Government has launched a consultation on the Conduct of Employment Agencies and Employment Businesses Regulations 2003 which could have a significant impact on the day-to-day business of recruitment companies. Whilst the document addresses some positive aspects, the principal area affecting supply recruiters is a proposal to remove the limited company opt out under regulation - [3 umbrella problems damage umbrella reputation](https://www.lawspeed.com/3-umbrella-problems-damage-umbrella-reputation/) - Following the recent news that JSA Services Limited, part of the JSA Group, owes £10.6 million to HMRC and has entered into a voluntary arrangement and that two other “umbrella service providers” have left contractors unpaid, agencies should take care to ensure they are protected against umbrella failures, says the recruitment law specialist Lawspeed. Adrian - [European Parliament votes to get rid of opt-out](https://www.lawspeed.com/european-parliament-votes-to-get-rid-of-opt-out/) - The saga continues of the so called “deal”, under which the UK’s position opposing the Agency Workers Directive (AWD) was withdrawn in exchange for agreement for the UK to retain the 48 hour opt out under the Working Time Directive (WTD.) On 17th December the EU Parliament made a determined attempt to remove the opt - [Government announces yet more measures - this time](https://www.lawspeed.com/government-announces-yet-more-measures-this-time/) - The Government has today issued a new consultation – entitled “Tax relief for travel expenses: temporary workers and overarching employment contracts”. This marks the beginning of another phase in the government’s review of the agency sector. Clearly the principle, that agency workers are able, by operating through an umbrella company or agency, in either case - [Agency Workers Directive - sleepwalk to disaster?](https://www.lawspeed.com/agency-workers-directive-sleepwalk-to-disaster/) - The Agency Workers Directive (AWD) has long been simmering in the background, with many believing it would never become law, especially since the Government was originally against the proposals. However, following another policy U-turn, the Government announced on the 20th May that a deal had been made with the TUC and the CBI that would - [EU Council reaches agreement on principles of Agency Workers Directive](https://www.lawspeed.com/eu-council-reaches-agreement-on-principles-of-agency-workers-directive/) - On the 10th June, the EU Council agreed points of principle as to the content of the proposed Agency Workers Directive. Fundamentally it was agreed that the entitlement for agency workers to have comparable rights to regular employees of the end user shall apply from day one of an assignment in terms of pay, leave - [Agency Workers to get Employment Rights](https://www.lawspeed.com/agency-workers-to-get-employment-rights/) - Following our newsletter of 16th May 2008 the government has announced that it has agreed a deal with unions and employers that will see agency workers receiving equal treatment as employees. Equal treatment will mean the same entitlement to pay and basic working and employment conditions. The entitlement will arise after 12 weeks "in a - [Changes to Conduct Regulations & Agency Standards Enforcement](https://www.lawspeed.com/changes-to-conduct-regulations-agency-standards-enforcement/) - It is worth the reminder that there were two related BERR consultations in 2007 on "... measures to protect vulnerable agency workers" and "...National Minimum Wage and Employment Agency Standards Enforcement". Following responses to the consultations, the proposed legislation was finalised and will take effect in two stages during 2008. The Conduct of Employment Agencies - [Case partially clarifies agency worker employment status](https://www.lawspeed.com/case-partially-clarifies-agency-worker-employment-status/) - For many years there has been a lack of clarity as to whether an agency could have employment rights as against a hirer. More technically minded readers will know that the ruling in Dacas (2004) first really set the cat amongst the pigeons, when the Court of Appeal implied that an agency worker could be - [Who could be an MSCP?](https://www.lawspeed.com/who-could-be-an-mscp/) - In April 2007 the government introduced legislation to force contractors to pay employment taxes where the contractor obtains advice from managed service company providers (MSCPs). In some circumstances, this debt could be transferred to the MSCP. For an organisation to be an MSCP all that is required is for it to be in the business - [HMRC Drops MSC Audit Scheme](https://www.lawspeed.com/hmrc-drops-msc-audit-scheme/) - Following representations put forward by Lawspeed, HMRC and the Treasury has abandoned the idea of introducing an audit scheme in the foreseeable future. In recent months HMRC had announced that it was considering a scheme which may allow for certain third parties to assess whether a provider organisation is compliant with the MSC legislation. However - [HMRC has clarified its current position in relation to the MSC legislation, but some questions remain.](https://www.lawspeed.com/hmrc-has-clarified-its-current-position-in-relation-to-the-msc-legislation-but-some-questions-remain/) - At Lawspeed’s fully attended one day conference held on 11th October 2007, Robin Wythes, of HMRC and responsible for MSC legislation, indicated that HMRC recognises the difficulties that employment businesses have in identifying whether a contractor is operating through an MSC. In order to reduce concerns over debt transfer he said that an MSC tax and - [Confusion reigns over MSC approval schemes – or does it?](https://www.lawspeed.com/confusion-reigns-over-msc-approval-schemes-or-does-it/) - Accreditation scheme For some months there has been speculation that an accreditation scheme, whereby HMRC will exclude certain organisations that are accredited from the scope of the MSC legislation, is under consideration by HMRC. Whilst this may be in the interests of those organisations that operate as centralised “accountancy” service providers to workers provided via - [MSC Legislation - Further Guidance](https://www.lawspeed.com/msc-legislation-further-guidance/) - HMRC issues further guidance in relation to the MSC legislation As part of its ongoing monitoring of events related to the MSC legislation HMRC has identified areas where it feels additional clarification would be required, in particular to address certain misleading information. This further guidance can be found at https://www.hmrc.gov.uk/ It is important to note - [MSC Legislation Update](https://www.lawspeed.com/msc-legislation-update/) - Following the publication of the draft Finance Bill in March 07 there has been considerable speculation concerning the meaning of some of the definitions. In particular, the section that excludes organisations that provide accountancy and legal advice allows interpretation that facilitates the suggestion that some service providers to contractors can continue as usual. Does it - [Budget Note - MSC Legislation Changes](https://www.lawspeed.com/budget-note-msc-legislation-changes/) - Aside from the increases in beer, wine, cigarettes and duty on most polluting cars, the second most important issue for you will obviously be the MSC legislation update. The Government has confirmed that legislation will be introduced to achieve the objectives set out in the consultation document. But it is responding to key concerns raised - [8th February 2007 MSC consultation phase 2 - Government releases third party debt provisions](https://www.lawspeed.com/8th-february-2007-msc-consultation-phase-2-government-releases-third-party-debt-provisions/) - Following the consultation announced on 6th December 2006 “Tackling Managed Service Companies”, the government has now published its first draft of the threatened third-party liability provisions, making third parties liable for the tax debts of an MSC. This again is within a consultation to which responses are required by 30th April. The consultation is limited - [Lawspeed Meets with HMRC](https://www.lawspeed.com/lawspeed-meets-with-hmrc/) - On 17th January Adrian Marlowe and David Vincent of Lawspeed met with six representatives of the Treasury to discuss the proposed new MSC legislation. During a meeting lasting nearly two hours a number of key points emerged, and the following represents our understanding: HMRC does not intend to legislate against genuine umbrella companies that employ - [HMRC announces start of a review of the concession](https://www.lawspeed.com/hmrc-announces-start-of-a-review-of-the-concession/) - Note 25th June 2010 - As can be seen from the article below HMRC started a review of the concession in July 2006. In April 2008 it was announced that the concession would be withdrawn after 1 year, and on 1st April 2009 the concession ended. The concession was particularly useful for public sector organisations, - [Extending paid holiday entitlement](https://www.lawspeed.com/extending-paid-holiday-entitlement/) - Government announces consultation on the increase of paid holiday entitlement under the Working Time Regulations to include public and bank holidays. The DTI has announced a consultation on extending the current right for all workers to 20 days' paid leave each year by a further 8 days to reflect bank and public holidays “UK Holidays”). If - [Cable & Wireless v Muscat Court of Appeal](https://www.lawspeed.com/cable-wireless-v-muscat-court-of-appeal/) - It is a finance directors role, amongst other things, to find ways of reducing overhead. Costs actually saved without affecting performance is the ideal. Attributing costs to one type of overhead instead of another can also have benefits, allowing budgetary targets to be met. Traditionally one method for larger organisations to reduce and/or reallocate cost - [Good news on employment status](https://www.lawspeed.com/good-news-on-employment-status/) - Less than 4 weeks after the Court of Appeal’s decision on Cable & Wireless v Muscat, that a contract of employment can be implied between an agency worker and an end user, the Government announce that there is no need for further legislation on employment rights for agency workers. The timing of the announcement could - [Landmark Court of Appeal Status Ruling](https://www.lawspeed.com/landmark-court-of-appeal-status-ruling/) - Those hirers using agency workers / contractors / interims will know that 2 years ago the Court of Appeal (in Dacas -v- Brook Street Bureau) stated that an agency worker could be the employee of the end user to which he/she is supplied. This despite the worker being signed on a contract for services and - [Employment status – where are we now?](https://www.lawspeed.com/employment-status-where-are-we-now/) - The issue of the employment status of an agency worker has been one on which there has been a flurry of judicial activity over the past two years. The recent trend in court decisions has been to find that there has been an implied contract of employment between the agency worker and the end user - [When is an agency worker an employee?](https://www.lawspeed.com/when-is-an-agency-worker-an-employee/) - The issue of employment status is rapidly becoming a minefield for recruitment agencies and their clients. Failure to keep up to speed with the constantly changing legal position can prove very costly. In Cable & Wireless v Muscat, for example, the Employment Appeal Tribunal held that an agency worker was an employee of the end user, - [Cable & Wireless v Muscat – Agency Clients Respond](https://www.lawspeed.com/cable-wireless-v-muscat-agency-clients-respond/) - Following the case of Dacas -v- Brook Street Bureau last year the Employment Appeal Tribunal (EAT) has upheld a decision of an Employment Tribunal that an agency worker, operating through a personal services company, is the employee of the end user. In Dacas there was relief in the recruitment community that the agency Brook Street - [End User held to be the employer of agency worker](https://www.lawspeed.com/end-user-held-to-be-the-employer-of-agency-worker/) - Following the case of Dacas –v- Brook Street Bureau last year the Employment Appeal Tribunal (EAT) has upheld a decision of an Employment Tribunal that an agency worker, operating through a personal services company, is the employee of the end user company. Although subject to a right to appeal, in the case of Cable and - [Brook Street case opens the door for tribunal claims](https://www.lawspeed.com/brook-street-case-opens-the-door-for-tribunal-claims/) - Following the result in the Brook Street v Dacas case earlier this year in the Court of Appeal we are starting to see evidence of temps ‘chancing their arm’ in tribunal claims against end user clients. Two claims have been notified to us in the last three weeks indicating that the Brook Street judgment may - [New EAT case poses danger](https://www.lawspeed.com/new-eat-case-poses-danger/) - A recent decision by the Employment Appeal Tribunal (EAT) could have significant implications for all agencies placing PAYE temporary workers with clients. The EAT held that a Temp who had worked as a cleaner for a hostel through the agency Brook Street was an employee of Brook Street and was therefore entitled to pursue a - [DTI's employment status review](https://www.lawspeed.com/dtis-employment-status-review/) - The Employment Status Review (ESR) was first announced by the government on 11th July last year in document called ‘discussion document on employment status in relation to statutory employment rights.’ The consultation period to reply to this paper has now passed. However, the ESR does offer an interesting insight into the government’s thoughts on the - [EU agency workers directive](https://www.lawspeed.com/eu-agency-workers-directive/) - Whilst many of you have no doubt heard of the proposed Agency Workers Directive (AWD), do you really understand the possible effect this proposal could have on your business and the recruitment sector? The general aim of the AWD is to help the EU “become the competitive and most dynamic knowledge-based economy in the world, - [Working time and holiday pay](https://www.lawspeed.com/working-time-and-holiday-pay/) - Employment Tribunals (ETs) have made heavy weather of the provisions in the Working Time Regulations (WTR) relating to holiday pay. No one doubts that workers are entitled to payment, and many agencies include a sum in respect of that pay with normal “wage” payments. Conflicting results have arisen from applications to ETs, on the one - [Risk management and insurance](https://www.lawspeed.com/risk-management-and-insurance/) - Effective risk management is crucial to businesses of all sizes and is no less important to a recruitment agency when the market is in a downturn. It may be tempting to ignore risk when the times are tough but storing up potentially dangerous liabilities could prove costly in the long term. Contracts An important aspect ## Pages - [Home](https://www.lawspeed.com/) - Recruitment and employment law experts The original recruitment law specialists Contracts, legal advice and much more for UK recruitment and consultancy businesses. Get in touch today Recruitment contracts & terms of business Legal & compliance advice E-sign and contract automation Recruitment contracts Legal advice Compliance support Latest news Zero Hours Contracts Reform: What the Consultation - [Recruitment Contracts](https://www.lawspeed.com/services/recruitment-contracts/) - Robust, tailored recruitment contracts and terms of business that protect your fees and keep you compliant, from the UK's original recruitment law specialists. - [PSC Contracts Landing Page](https://www.lawspeed.com/psc-contracts/) - Secure your outside IR35 placements with Lawspeed's robust PSC contracts. Built for recruitment agencies to manage IR35 status and protect commercial fees. - [Accreditation](https://www.lawspeed.com/services/accreditation/) - Accreditation Assurance for hirers, candidates and investors Get in touch today A Lawspeed company Standards in Recruitment Set up by Lawspeed in 2015 Standards in Recruitment (SiR) is the UK’s first and only independent compliance and accreditation programme for businesses engaged in recruitment, employment, executive search and freelance placement. Accreditation, evidenced by the distinctive SiR - [Client Terms Landing Page](https://www.lawspeed.com/client-terms/) - Protect your recruitment agency's revenue with Lawspeed's robust client terms of business. Built for fee protection, compliance, and fast sign-off. - [FAQs General](https://www.lawspeed.com/faqs-general/) - Resources /Frequently Asked Questions Frequently Asked Questions about us You’ll have questions about us, so we’ve answered some of them here. If your question doesn’t appear, please feel free to get in touch. We’ll happily provide the answer. What makes Lawspeed different? Contracts & Proterms Legal advice & helpline Compliance & regulation Terminology & jargon - [FAQs](https://www.lawspeed.com/faqs/) - Recruitment law is complex; our FAQs simplify key rules and pitfalls to help you navigate compliance. - [Resources](https://www.lawspeed.com/resources/) - Explore resources, shop, events, training, and FAQs to support your recruitment business. - [Start up recruitment](https://www.lawspeed.com/services/start-up-recruitment/) - Start your recruitment business right with strong contracts and expert support at discounted rates. - [Employment Contracts Landing Page](https://www.lawspeed.com/employment-contracts/) - Employment contracts for your recruitment agency's internal staff Your internal team drives your business, but without the right protections, they can also represent a significant commercial risk. The Lawspeed employment contract is for use between a recruitment business and internal staff. It is specifically designed for recruiters with a wide range of staff options, covering - [Events](https://www.lawspeed.com/events/) - Lawspeed hosts annual seminars to provide key legal updates and practical info for recruiters and recruitment businesses. - [Consultation on Zero/Guaranteed Hours Contracts Seminar](https://www.lawspeed.com/consultation-on-guaranteed-hours-contracts-seminar/) - Lawspeed Seminar | 7th July 2026 | 1:30pm-5pm | BMA House, London Consultation on Zero/Guaranteed Hours Contracts A Critical Consultation for Agencies and Hirers The guaranteed hours proposal is that after being supplied for a proposed 12-week reference period, hirers will be obliged to offer a direct guaranteed hours contract to an agency worker. This - [Proterms](https://www.lawspeed.com/proterms/) - Proterms is a fast, efficient contract management platform for recruiters. There’s no hanging around for e-signatures. Click and it’s done. - [Contact](https://www.lawspeed.com/contact-us/) - Contact us for expert recruitment legal support, whether you're a start-up or multinational. - [About](https://www.lawspeed.com/about/) - Since 1997, we’ve led in recruitment law, offering contracts, legal support, and a unique digital platform to recruiters and recruitment businesses. - [Worker & contractor tax rules](https://www.lawspeed.com/worker-contractor-tax-rules/) - A helping hand through the complexities of worker & contractor tax. Practical advice and watertight recruitment contracts for off-payroll workers. - [Consultation on the Agency Conduct Regulations Seminar](https://www.lawspeed.com/consultation-on-agency-conduct-regulations-seminar/) - An essential seminar for recruitment leaders ahead of proposed reforms to the Conduct of Employment Agencies and Employment Businesses Regulations. - [Agency and Umbrella supply: Get Ready for 2026](https://www.lawspeed.com/lawspeed-seminar-preparing-recruitment-agencies-for-2026/) - Join us at BMA House, London as we teach recruitment businesses how to protect themselves against the proposed changes to umbrella tax, conduct regulations and employment law. - [Seminar](https://www.lawspeed.com/elementor-99460/) - [Privacy Policy](https://www.lawspeed.com/privacy-policy/) - Read our Privacy Policy to understand how we protect your data and ensure your privacy. - [Mail Test](https://www.lawspeed.com/mail-test/) - Name Email Message Send - [Seminars and Conferences - Booking Terms](https://www.lawspeed.com/seminars-and-conferences-booking-terms/) - These terms apply to each booking and are deemed accepted by any person making a booking. All confirmed (non provisional) bookings must be accompanied by payment by credit card or other payment system on the website. No booking is valid without cleared payment. Bookings will normally be acknowledged by email with a VAT receipted invoice.Discounts for These terms apply to each booking and are deemed accepted by any person making a booking. All confirmed (non provisional) bookings must be accompanied by payment by credit card or other payment system on the website. No booking is valid without cleared payment. Bookings will normally be acknowledged by email with a VAT receipted invoice.Discounts for - #These terms apply to each booking and are deemed accepted by any person making a booking. All confirmed (non provisional) bookings must be accompanied by payment by credit card or other payment system on the website. No booking is valid without cleared payment. Bookings will normally be acknowledged by email with a VAT receipted invoice.Discounts for - [Umbrella terms Landing Page](https://www.lawspeed.com/umbrella-terms/) - Do you need an umbrella agreement for your recruitment agency? Working with umbrella companies is increasingly high-risk.Protect your agency with a Lawspeed Umbrella Agreement. A framework contract built for today’s compliance challenges. Get my umbrella agreement Lawspeed: The original recruitment law specialists since 1997 Why do you need an umbrella agreement? Umbrella compliance is under - [Terms and conditions](https://www.lawspeed.com/terms-of-use/) - Review our clear and comprehensive terms and conditions for recruitment and staffing services. - [Old Events](https://www.lawspeed.com/old-events/) - Events There is a lot of information you need to know relating to legislation, regulations and case law within the recruitment industry. This is why every year Lawspeed has hosted events, such as seminars. This is to provide detailed informative and practical information on a burning current issue relevant to the recruitment sector. Get in - [Recruitment vs Consultancy Guide Landing Page | Lawspeed](https://www.lawspeed.com/recruitment-vs-consultancy/) - The essential legal guide for recruiters exploring the consultancy model. Here's everything you need to know about recruitment consultancy. - [Support (that no other law firm offers)](https://www.lawspeed.com/services/additional-legal-support/) - We offer expert legal support and added services to simplify your operations and ease your workload. - [Legal advice](https://www.lawspeed.com/services/legal-advice-for-recruiters/) - Tap into advice from our recruitment industry experts and get the solution you need. Our helpline is available on demand, as if we are part of your in house team. - [Compliance in Recruitment](https://www.lawspeed.com/services/recruitment-compliance-advice/) - Ensure compliance to avoid issues, save time, and boost business value with our expert support. - [HomeV2](https://www.lawspeed.com/homev2/) - Recruitment and employment law experts The original recruitment law specialists Contracts, legal advice and much more for UK recruitment and consultancy businesses. Get in touch today Recruitment contracts & terms of business Legal & compliance advice E-sign and contract automation Recruitment contracts Legal advice Compliance support Latest news IR35 and Outsourcing Services: Some Ideas October - [Consultancy Agreements Landing Page](https://www.lawspeed.com/consultancy-agreements/) - Thinking of adopting a consultancy model? Consultancy is a different model to recruitment, with greater opportunity but also greater responsibility.Lawspeed’s consultancy agreements give you the right legal framework to deliver projects, protect your business, and stay compliant with IR35. Get advice on the consultancy model Lawspeed: Specialist contracts for staff integration and deployment since 1997 - [PAYE Contracts Landing Page](https://www.lawspeed.com/paye-contracts/) - Do you need a PAYE contract for your recruitment agency? When you engage workers directly, you need a contract that’s robust, simple to manage, and compliant with current law.A Lawspeed PAYE contract gives you everything in one framework agreement, with built-in features that make PAYE easy Get my PAYE contract Lawspeed: The original recruitment law - [Employment Status](https://www.lawspeed.com/employment-status/) - Employment status is crucial and complex, impacted by arrangements and evolving case law. - [Partner with Us](https://www.lawspeed.com/partner-with-us/) - Join our network of suppliers to enhance recruitment services through innovative partnerships. - [Recruitment law training](https://www.lawspeed.com/recruitment-law-training/) - A range of recruitment law training programmes delivered by experts. Ideal for all types of recruitment businesses, from established firms to startups. - [Products and Services](https://www.lawspeed.com/services/) - / Product & services Our services and products Recruitment Contracts and Terms of Business Virtual legal department Compliance Additional support (that no other law firm offers) Start up recruitment Agency tax rules and IR35 Employment Status - [Testing template](https://www.lawspeed.com/testing-template/) - [Shop](https://www.lawspeed.com/shop/) - Browse our shop and discover the resources that will help you succeed. ## Products - [PAYE Worker Models Webinar](https://www.lawspeed.com/product/paye-worker-models-webinar/) - Specialist legal consultancy dedicated to the recruitment sector. Recruitment contracts and terms of business with compliance and legal support services. - [Conduct Regulations Webinar](https://www.lawspeed.com/product/conduct-regulations-webinar/) - Specialist legal consultancy dedicated to the recruitment sector. Recruitment contracts and terms of business with compliance and legal support services. - [Employment Status Webinar](https://www.lawspeed.com/product/employment-status-webinar/) - Specialist legal consultancy dedicated to the recruitment sector. Recruitment contracts and terms of business with compliance and legal support services. - [Agency Worker Regulations (AWR) Webinar](https://www.lawspeed.com/product/agency-worker-regulations-awr-webinar/) - Specialist legal consultancy dedicated to the recruitment sector. Recruitment contracts and terms of business with compliance and legal support services. - [Holiday Pay Webinar](https://www.lawspeed.com/product/holiday-pay-webinar/) - Holiday Pay Webinar: Explore laws, issues, and solutions for hirers, agencies, and umbrella companies. ## Categories - [Blog](https://www.lawspeed.com/category/blog/) - Your blog category - [Recent Post](https://www.lawspeed.com/category/recent-post/) - [AWR News](https://www.lawspeed.com/category/awr-news/) - [News](https://www.lawspeed.com/category/news/) - [Latest](https://www.lawspeed.com/category/latest/) - [Events](https://www.lawspeed.com/category/events/) - [Uncategorised](https://www.lawspeed.com/category/uncategorised/) - [Conduct Regulations](https://www.lawspeed.com/category/conduct-regulations/) - [Umbrella Companies](https://www.lawspeed.com/category/umbrella-companies/) - [Feen Recovery](https://www.lawspeed.com/category/feen-recovery/) - [Employment Law](https://www.lawspeed.com/category/employment-law/) - [Fee Recovery](https://www.lawspeed.com/category/fee-recovery/) - [EAS](https://www.lawspeed.com/category/eas/) - [IR35](https://www.lawspeed.com/category/ir35/) - [Zero Hour Contracts](https://www.lawspeed.com/category/zero-hour-contracts/) - [Right to Work](https://www.lawspeed.com/category/right-to-work/) - [KIDs](https://www.lawspeed.com/category/kids/) ## Tags - [HMRC](https://www.lawspeed.com/tag/hmrc/) - [IR35](https://www.lawspeed.com/tag/ir35/) - [recruitment](https://www.lawspeed.com/tag/recruitment/) - [umbrella companies](https://www.lawspeed.com/tag/umbrella-companies/) - [mini umbrellas](https://www.lawspeed.com/tag/mini-umbrellas/) - [Labour Party](https://www.lawspeed.com/tag/labour-party/) - [Agency Workers](https://www.lawspeed.com/tag/agency-workers/) - [2024 election](https://www.lawspeed.com/tag/2024-election/) - [Agency Temps](https://www.lawspeed.com/tag/agency-temps/) - [fee recovery](https://www.lawspeed.com/tag/fee-recovery/) - [legal advice](https://www.lawspeed.com/tag/legal-advice/) - [employment law](https://www.lawspeed.com/tag/employment-law/) - [employment tribunal](https://www.lawspeed.com/tag/employment-tribunal/) - [fee disputes](https://www.lawspeed.com/tag/fee-disputes/) - [AWR](https://www.lawspeed.com/tag/awr/) - [Agency Worker Regulations](https://www.lawspeed.com/tag/agency-worker-regulations/) - [recruitment fees](https://www.lawspeed.com/tag/recruitment-fees/) - [recruitment terms](https://www.lawspeed.com/tag/recruitment-terms/) - [umbrella](https://www.lawspeed.com/tag/umbrella/) - [CIS](https://www.lawspeed.com/tag/cis/) - [PAYE](https://www.lawspeed.com/tag/paye/) - [EAS](https://www.lawspeed.com/tag/eas/) - [Employment Agency Standards](https://www.lawspeed.com/tag/employment-agency-standards/) - [Contractors](https://www.lawspeed.com/tag/contractors/) - [employment agencies](https://www.lawspeed.com/tag/employment-agencies/) - [zero hour contracts](https://www.lawspeed.com/tag/zero-hour-contracts/) - [umbrella regulations](https://www.lawspeed.com/tag/umbrella-regulations/) - [right to work](https://www.lawspeed.com/tag/right-to-work/) - [kids](https://www.lawspeed.com/tag/kids/) - [key information document](https://www.lawspeed.com/tag/key-information-document/) - [Outsourcing Services](https://www.lawspeed.com/tag/outsourcing-services/) - [Statutory Sick Pay Changes](https://www.lawspeed.com/tag/statutory-sick-pay-changes/) - [Risk from new umbrella legislation](https://www.lawspeed.com/tag/risk-from-new-umbrella-legislation/) - [Recruitment Law](https://www.lawspeed.com/tag/recruitment-law/) - [guaranteed hours](https://www.lawspeed.com/tag/guaranteed-hours/) ## Product categories - [Webinar](https://www.lawspeed.com/product-category/webinar/)