Are you a Compliant Recruiter?
First intermediary responsibility puts a whole new perspective on compliance, add personal Director liability and the stakes have been raised even further. As an Owner, Director or Manager of a successful recruitment business, are you 100% confident that your processes are compliant and maintained correctly? UK Compliance Solutions has the experience and knowledge to offer your business support and training to become commercially compliant. There are 16,000 recruitment businesses and 65,000 consultants in the UK, its a £35 billion industry and its heavily legislated. Compliant Clients expect compliance from their recruitment partners and compliant recruitment businesses have a competitive edge when promoting their business. Its a window of opportunity not a closed door but some of you may be asking "where's the risk?"
UKCS has a range of services and peace of mind packages available for all budgets to help you solve the compliance challenge.
First intermediary responsibility puts a whole new perspective on compliance, add personal Director liability and the stakes have been raised even further. As an Owner, Director or Manager of a successful recruitment business, are you 100% confident that your processes are compliant and maintained correctly? UK Compliance Solutions has the experience and knowledge to offer your business support and training to become commercially compliant. There are 16,000 recruitment businesses and 65,000 consultants in the UK, its a £35 billion industry and its heavily legislated. Compliant Clients expect compliance from their recruitment partners and compliant recruitment businesses have a competitive edge when promoting their business. Its a window of opportunity not a closed door but some of you may be asking "where's the risk?"
UKCS has a range of services and peace of mind packages available for all budgets to help you solve the compliance challenge.
The Conduct of Employment Agencies and Employment Businesses Regulations
Otherwise known as the Conduct Regs, they govern the conduct of the recruitment industry and establish a framework of minimum standards that both hirers and work seekers should expect. EAS inspectors investigate complaints, follow up possible misconduct and undertake checks of employment agencies and employment businesses. In serious cases companies might be prosecuted or referred to an employment tribunal and could get stopped from working as an employment agency or business. Most breaches of the rules are criminal offences. You could be tried in a Magistrates’ Court with a maximum fine of £5,000 or even taken to the Crown Court where the fine is unlimited.
Otherwise known as the Conduct Regs, they govern the conduct of the recruitment industry and establish a framework of minimum standards that both hirers and work seekers should expect. EAS inspectors investigate complaints, follow up possible misconduct and undertake checks of employment agencies and employment businesses. In serious cases companies might be prosecuted or referred to an employment tribunal and could get stopped from working as an employment agency or business. Most breaches of the rules are criminal offences. You could be tried in a Magistrates’ Court with a maximum fine of £5,000 or even taken to the Crown Court where the fine is unlimited.
Data Protection Act
Designed to modernise data protection laws, the Data Protection Act 2018 came into force on 23
May 2018 as the third generation of the UK’s data protection regime. Based on the EU’s General
Data Protection Regulation (GDPR), the Data Protection Act 2018 is designed to take into account
advancements in the way data is used in the modern age and the way that personal information is
collected by online platforms for various legitimate and illegitimate uses.
Are you data compliant ?
Designed to modernise data protection laws, the Data Protection Act 2018 came into force on 23
May 2018 as the third generation of the UK’s data protection regime. Based on the EU’s General
Data Protection Regulation (GDPR), the Data Protection Act 2018 is designed to take into account
advancements in the way data is used in the modern age and the way that personal information is
collected by online platforms for various legitimate and illegitimate uses.
Are you data compliant ?
84E-84H, Specified Employment Intermediaries
These Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 to require specified employment intermediaries to provide specified information to HMRC and to keep and preserve specified information and documents. Recruitment businesses will need to keep records from the 6th April 2015 and provide the first return with the Specified Information 30 days after the end of that quarter (6th August 2015).
The penalty for failure to make the required return or making an incorrect return is up to £3000 initial fixed penalty plus daily penalties of up to £600 per day for continued non-compliance.
These Regulations amend the Income Tax (Pay As You Earn) Regulations 2003 to require specified employment intermediaries to provide specified information to HMRC and to keep and preserve specified information and documents. Recruitment businesses will need to keep records from the 6th April 2015 and provide the first return with the Specified Information 30 days after the end of that quarter (6th August 2015).
The penalty for failure to make the required return or making an incorrect return is up to £3000 initial fixed penalty plus daily penalties of up to £600 per day for continued non-compliance.
Right to Work, Imposters, Fantasy, Fake and Counterfeit Documents.
Probably the biggest single risk to recruitment businesses with 1 in 50 workers thought to be working illegally in the UK. UK Compliance Solutions urge all parties in the supply chain to follow UKBA procedure when checking their workers right to work documents to ensure a statutory defence exists in the event of any Right to Work issues.
The Right to work status of every contractor should be checked immediately, the penalty per worker is up to £20,000.
Probably the biggest single risk to recruitment businesses with 1 in 50 workers thought to be working illegally in the UK. UK Compliance Solutions urge all parties in the supply chain to follow UKBA procedure when checking their workers right to work documents to ensure a statutory defence exists in the event of any Right to Work issues.
The Right to work status of every contractor should be checked immediately, the penalty per worker is up to £20,000.
Finance Bill
The Finance Bill introduced a simplified test of self employment focusing on whether the work is subject to supervision, direction or control. Do you currently pay temporary workers on a self employed or sole trader basis? Are you confident that your CIS or self employed workers are not subject to supervision, direction or control? As the first intermediary you are still liable if a payroll provider pays a worker as self employed and I didn't check is no excuse.
The work status of every contractor should be checked immediately, 15 workers earning £20 per hour exposes you to over £100,000 per annum of Employers N.I. risk.
The Finance Bill introduced a simplified test of self employment focusing on whether the work is subject to supervision, direction or control. Do you currently pay temporary workers on a self employed or sole trader basis? Are you confident that your CIS or self employed workers are not subject to supervision, direction or control? As the first intermediary you are still liable if a payroll provider pays a worker as self employed and I didn't check is no excuse.
The work status of every contractor should be checked immediately, 15 workers earning £20 per hour exposes you to over £100,000 per annum of Employers N.I. risk.
Auto Enrolment
Auto Enrolment requires all recruitment businesses to automatically enrol PAYE members of their workforce (depending on age and salary level) into a pension scheme that meets certain minimum standards. The Pensions Regulator has already taken enforcement action and issued statutory notices and penalty fines to punish non compliance. The Pensions status of every worker should be checked immediately, fixed penalty notices are £400, escalating penalty notices have a daily rate of up to £10,000 depending on the number of staff and a civil penalty where you fail to pay contributions could be as much as £50,000.
Auto Enrolment requires all recruitment businesses to automatically enrol PAYE members of their workforce (depending on age and salary level) into a pension scheme that meets certain minimum standards. The Pensions Regulator has already taken enforcement action and issued statutory notices and penalty fines to punish non compliance. The Pensions status of every worker should be checked immediately, fixed penalty notices are £400, escalating penalty notices have a daily rate of up to £10,000 depending on the number of staff and a civil penalty where you fail to pay contributions could be as much as £50,000.
Supply Chain Duty of Care
Have you audited your umbrella companies? Do you have a PSL? Do they operate compliantly? Are you sure that no workers under supervision, direction and control are being paid self employed? Are your single person limited companies actively trading and is the worker a director of the limited company? Are you confident that no MSC type arrangements exist that might expose you to transfer of debt liability? Are you confident that your workers are not paid through an offshore intermediary scheme designed to avoid payment of tax? Are you certain that you are fully protected in the event of an investigation into any of these issues?
Have you audited your umbrella companies? Do you have a PSL? Do they operate compliantly? Are you sure that no workers under supervision, direction and control are being paid self employed? Are your single person limited companies actively trading and is the worker a director of the limited company? Are you confident that no MSC type arrangements exist that might expose you to transfer of debt liability? Are you confident that your workers are not paid through an offshore intermediary scheme designed to avoid payment of tax? Are you certain that you are fully protected in the event of an investigation into any of these issues?
Agency Workers Regulation
After 12 weeks, basic working and employment conditions for temporary agency workers are no less favourable than if they had been recruited direct by the hirer. Also, from day one, they have equal access to facilities and permanent employment opportunities. Do you have a defence in the event of a situation like Stevens v Northolt High School ET/3300621/2014, where an agency worker was awarded £10,878 compensation for underpayment by her hirer. The AWR status of every contractor should be checked immediately, non compliance carries a penalty, deliberate attempts to avoid Agency Worker Regulations carry a fine of £5,000.
After 12 weeks, basic working and employment conditions for temporary agency workers are no less favourable than if they had been recruited direct by the hirer. Also, from day one, they have equal access to facilities and permanent employment opportunities. Do you have a defence in the event of a situation like Stevens v Northolt High School ET/3300621/2014, where an agency worker was awarded £10,878 compensation for underpayment by her hirer. The AWR status of every contractor should be checked immediately, non compliance carries a penalty, deliberate attempts to avoid Agency Worker Regulations carry a fine of £5,000.
