Eleventh hour plea to shelve self employment crackdown

Grant Prior 5 years ago
Share

Recruitment agency bosses have issued a last minute plea to George Osborne to think again over plans to restrict self-employment in construction.

The crackdown is due to come into force on April 6 and hit more than 200,000 construction workers.

The move could push up labour costs by as much as 25%.

The Recruitment and Employment Confederation has now written to the Chancellor ahead of next week’s Budget warning that “the plans will remove self-employment as an option for anybody sourcing work via an employment agency.”

The confederation is calling on the government to delay implementation of the proposals laid out in the recent Onshore Employment Intermediaries consultation to give businesses time to renegotiate contracts and adjust project budgets to accommodate the changes.

REC chief executive Kevin Green said: “This draft legislation was sprung on businesses at very short notice.

“There is now less than a month to go before the new rules would come into effect and the government still hasn’t published its final guidance for employers.

“This scramble to implement shows a lack of understanding about how business works and the complexity of contracts for long-term projects.

“If these changes are rushed through they risk having a negative impact on job creation and growth in sectors that are vital for the recovery of the British economy.”

An agency looking to fully comply with the legislative changes would need to take a typical self-employed worker onto their direct payroll.

That would mean paying 13.8% employer NICs, along with increased employee NICs and income tax liabilities and other statutory payments leaving a compliant agency looking at a minimum 25% cost increase for the supply of labour.

Latest news

Pay row set to escalate on HS2 enabling works site

Dispute set to intensify over rates paid by labour supplier
1 day ago

VINCI starts work on new £100m Birmingham hospital

Contractor gets underway on three-year build programme
1 day ago

Four civils firms scoop £2.6bn flood and coastal framework

Kier breaks into Environment Agency preferred contractors list
1 day ago

Costain making engineers redundant at tech centre

Contractor cutting jobs at technology division it bought for £17m in 2016
1 day ago

Dozen firms win £500m City of London deal

Morgan Sindall, Osborne and Speller Metcalfe among winners
1 day ago

New £3m fund to improve construction procurement

Companies invited to bid for cash grants in CITB-led efficiency drive
1 day ago

Green light for vast Nottingham Boots Island scheme

Developer Conygar plans to build a 2m sq ft mixed-use scheme
1 day ago

Goldman Sachs bankrolls Brum’s tallest resi project

Builder Sisk can now start work on 42-storey Broad Street skyscraper
1 day ago

SME contractors agree 2.75% pay deal for workers

Annual pay increase will see hourly craft rates rise to £12.79
2 days ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
12 months ago

Lakehouse subbie goes after Sureserve for cash

Specialist wins adjudication award after contractor goes bust
2 days ago

Firms on alert for M4 Newport £185m enabling works

Bidders day planned ahead of July invitation to tender
2 days ago

Robertson hires Laing O’Rourke infrastructure ops director

Bryan Glass will head Robertson's civil engineering business in Scotland
2 days ago

Wates starts £24m Shoreham flood defence

Enabling works to pave way for 540-home Free Wharf scheme
2 days ago

£400m Eastern Highways Framework up for renewal

Essex County Council to invite bids for third generation framework in June
2 days ago

Countryside chief operating officer exits

Rebecca Worthington steps down as Countryside reports strong first half trading
2 days ago

Willmott Dixon chalks up £20m Liverpool nursing school

Liverpool John Moores University Tithebarn building and library to be extended and refurbished
2 days ago

Boy, 12, falls from scaffold ladder on poorly guarded site

Ten metre fall inflicts life-changing injuries on boy
3 days ago

Galliford Try profit warning sparks construction arm review

Firm warns profits will be £40m below forecasts after Queensferry Crossing hit
3 days ago

Morgan Sindall boosts north west leadership team

Growth drive sees new directors appointed in Manchester and Liverpool
3 days ago

Walter Lilly wins £55m London medical HQ project

Renew Group building specialist signs preconstruction services agreement
3 days ago

Autumn start for Mount Anvil’s largest ever scheme

Green light for 800-home Royal Eden Docks scheme in East London
3 days ago

Laing O’Rourke strategy boss joins Royal BAM

Simon Finnie steered strategy at Laing O'Rourke and Kier over six years
3 days ago

New Structure Tone division lands first major deal

Detail & Build team bags fit-out for new owners of Heron House
3 days ago

New Kier chief sets out to streamline £4bn group

Andrew Davies launches strategic review to simplify business and improve cash flow
4 days ago

McAleer & Rushe closes in on £400m turnover

Hotel specialist delivers further growth and £17m pre-tax profit
4 days ago

Construction’s most considerate sites revealed

Best performing contractors confirmed: Full details
5 days ago

Infrastructure clients lead drive to eliminate site accidents

Major push to end injuries and illness caused by seven key site risks
4 days ago

Rogue roofer found guilty of fraud

Court hears "abysmal" repairs charged at £38,000 were worth just £250
1 week ago

Engie names new UK chief executive

Nicola Lovett takes helm at UK and Ireland business in May
4 days ago

Contractor services