With the end of lockdown approaching, and as businesses start to allow staff to return to work, it is tempting to rush back into the office. However, is this a good idea?
While we are all pre-occupied with Coronavirus and wondering when we can finally return to the office, it is still important that recruitment agencies keep on top of recent legal developments with regards to employment law.
There is no question that COVID-19 has had a negative impact on the recruitment industry and while some sectors like logistics, medical and IT are maintaining demand, others, like hospitality, have suffered. We explore the effect of Coronavirus looking into the future.
On the 18th March 2020, the Government delayed changes to the IR35 rules for the private sector until next year as a result of the COVID-19 pandemic. The new rules are now due to come into force on the 6th April 2021. Has this delay actually helped recruitment agencies? We explore some of the impacts that this delay has had on the sector.
We are closely monitoring the COVID-19 (Coronavirus) outbreak, and will keep our clients and staff informed as we respond to the latest developments.
Lockton is closely monitoring the coronavirus outbreak on behalf of our Associates and clients. The situation is fast-developing, and local health agencies should be consulted for the latest news and directives. Our team have compiled information about key considerations for employers related to the outbreak which can be accessed by downloading the document to the right hand side.
Over the last decade, we have seen a huge increase in the number of recruitment agencies being set up with over 30,000 currently operating in the UK. This expansion is driven in part by some recruiters working under the assumption that it is straightforward to set up and run a recruitment agency, as there is very little government regulation of this sector. However, this would be an incorrect assumption.
The new IR35 government legislation that should come into effect in April 2020 seeks to redefine the IR35 rules for contractors supplied to the private sector. As the draft legislation has not been made public yet, the best everyone can do at the moment is speculate about the proposed changes and how it will impact recruitment agencies.
• Consultants leaving employment to create agencies is causing heightened competition • Candidate shortage is high due to low unemployment. Brexit may exacerbate this by lowering access to EU workers • Agencies wishing to attract top candidates must do more • High operational costs are challenging agencies to find savings while remaining competitive • New approaches must be considered by agencies in 2019
Regardless of the relatively new General Data Protection Regulation (GDPR) the recruitment industry have always had a responsibility to protect the data that they control. Whether you are an agency or an umbrella, failure to protect this data presents a significant reputational risk to your business and the ramifications of which could prove to be catastrophic.
• IR35 changes to the public sector have introduced new risk and challenge to contractors and hirers, particularly within the recruitment industry • Proposed IR35 changes will see the legislation apply to the private sector from April 2020 • Contractors being ‘inside’ or ‘outside’ IR35 is determined by hirers and recruiters • Under IR35, many workers have become employees of their hiring company • This has worsened the talent shortage common to recruiters and the industry overall • Recruiters and contractors must now prepare in advance to ensure compliance
• Morrisons have been found liable for a data leak performed by a disgruntled former employee • Over 5,000 employees have sued the company, at a total cost of over £2,000,000 • This risk is relevant to the recruitment industry • Recruiters must recognise this risk and take steps to protect their operations from the dangers of insider threat and non-compliance to GDPR • A set of practical steps are provided in this article to help recruiters do so
