FCSA Workforce Matters | One in twenty workers receive no holiday pay, 40% of whom are temps

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Welcome

I was pleased to be invited to the launch event of new research by the Resolution Foundation on Monday this week. Their findings indicate that one in twenty workers receive no holiday pay and alarmingly, 40% of whom are temporary workers. This evidence sets the tone for the government’s long-planned enforcement of holiday entitlement rights for all workers, which I understand is a key priority, and that they are planning how best to go about this.

Yesterday FCSA and FreeAgent once again delivered an IR35 update webinar which was attended by some 400+ accountants. It is great to be working in partnership to keep the sector informed on developments and provide some support in relation to the off-payroll changes. It is clear that HMRC themselves need to do more, given that 87% of attendees voted that they have not been receiving enough information from HMRC in relation to the reforms.

Lastly, don’t forget to book your place for our IR35/Off-Payroll seminars specifically for recruitment agencies in Manchester and London. These are already popular, so book early! You can register here for Manchester on 25 September, or for London on 15 October book here.

I hope to see you there!

Best wishes

Julia Kermode, FCSA Chief Executive

In this Issue


	News One in twenty workers receive no holiday pay, 40% of whom are temps According to research published by the Resolution Foundation, around one in twenty workers do not receive any holiday entitlement, while one in ten do not receive a payslip. All workers in the UK are entitled to 5.6 weeks of paid holiday every year, however, older people are less likely to receive this, with one in six workers aged 65+ receiving no paid holiday, more than any other age group. Shockingly, just over 40% of those receiving no holiday pay are temporary workers, and almost 50% are on zero hours contracts. You can see the data on agency workers not receiving holiday pay in our Market Analysis section below. Workers in the hotels and restaurants sector are most likely to miss out on payslips with one in seven not receiving one, a rate which is 50% higher than the rest of the labour market. The analysis also finds that workers in small firms (employing fewer than 25 employees) are most likely to miss out on payslips and holiday leave, as are workers on zero-hours and temporary contracts. You can read the full report here. Workplace ageism may be disappearing According to The Guardian, ageism in the workplace may be becoming a prejudice of the past because ONS figures show the unemployment rate for younger people is now the same as it is for older people. The ONS data shows that just 2.6% of adults aged 35 to 49 are unemployed, the same rate for people aged between 50 and 64. The gap between the employment rates of both groups is also narrowing - in 2019 it is 12.7% compared with a gap of 21.1% in 1999. The ONS also found that, for the first time, there are now more women aged 60 to 64 working than not working. There are currently 10 million workers aged over 50 in the UK and this number is expected to continue to rise: when records began in 1992, workers aged 50-plus accounted for 21% of UK employees. This figure has now reached 32%. Science and technology boom to create millions of new jobs Analysis by BNP Paribas and the Centre for Economics and Business Research (CEBR) predicts that the UK’s economy will undergo a major shift in the next two decades. Their latest research has the following key findings: The scientific, admin and support sector is set to be the fastest growing sector in terms of output with a 43% increase in the value of output per year over the ten years to 2028, and double in size by 2038. The transport, storage and communications sector will also grow, with a 40% rise in output between 2018 and 2028, and a 92% increase in the 20 years to 2038. This will be driven by computer programming, consulting and related activities, as technological advancements including AI, automation and robotics proliferate. The transport, storage and communications sector is likely to see the fastest employment growth with a 37% increase in the number of workers over this time period. The construction sector is also expected to see a notable increase in the level of employment in the coming years, with a 35% rise in employment over the next two decades. Environmental sustainability issues are key growth drivers for automotive (68%) and construction industry (60%) leaders, the top and third most positive respectively. Scientific research and development will rise in importance over the coming years as growing demand for healthcare from an ageing population intensifies the need for advanced medical and pharmaceutical solutions. You can read the full report and predictions here.


	Government, Policy & Technical HMRC delay VAT reverse charge for construction services You may already be aware that HMRC have announced a delay to implementing the VAT reverse charge for construction services that was due on 1 October 2019. According to their statement, HMRC remains committed to the reverse charge and has already increased compliance resource. In the intervening year, HMRC will focus additional resource on identifying and tackling existing perpetrators of the fraud. They will also work closely with the construction sector to raise awareness and provide additional guidance to support businesses and ensure that they will be ready for the new implementation date. Government to review the loan charge The Chancellor, Sajid Javid has commissioned a review into the loan charge which is expected to be complete by mid-November. The review will be led by Sir Amyas Morse, the former Comptroller and Auditor General, and Chief Executive of the National Audit Office (NAO). The review is tasked with considering whether the loan charge policy is an appropriate way of dealing with disguised remuneration loan schemes, particularly the numerous concerns raised regarding the impact on individuals affected by the loan charge. While the review is under way the loan charge remains in force, and it is planned that the review will give certainty to taxpayers ahead of the January self-assessment deadline. The review is interested in hearing from a wide range of people and understanding their different perspectives to inform the review. If you would like to provide supporting documentary evidence then please email it to: secretariat@loanchargereview.org.uk . HMRC does not understand small business tax customers HMRC has just published a report to analyse why small businesses contact HMRC helplines for an ‘avoidable’ reason. They define small businesses as having fewer than 20 employees and an annual turnover of below £10m and includes sole traders. The report found that: customers believe managing tax is complex and that they are likely to get it wrong if they self-serve; anxiety about making errors is exacerbated by the perception that HMRC is likely to penalise customers; many customers felt that HMRC did not understand the experience of small business customers; there are several barriers to customers self-servicing their tax needs, including: difficulties navigating online content, confusion in applying written guidance, unable to find answers, uncertainty about receipt of payment or when a payment is due. Often ‘avoidable’ contact is made to chase progress on queries, e.g. “It took four phone calls, two letters and a few emails to get the money back. I kept calling because it’s the only way you can get any update on progress. Otherwise it’s a blank wall.” Several areas for improvement were identified in the report such as simplifying users’ online experience, streamline communications to customers, address customers’ concerns about not understanding their obligations. You can read the full report here.

Brabners LLP Legal Update

Contractor found to be a worker despite being paid through a company

The recent case of Community Based Care Health Ltd v Narayan [2018] confirmed that a GP providing services to an NHS provider through a limited company was a worker under the Employment Rights Act 1996.

In recent years there has been an influx of cases considering the question of whether an individual is self-employed or a worker, particularly in the gig economy. Whilst the decisions to date have helped shape the current landscape, this recent decision will be of particular interest to organisations who, either directly or through an agency, engage contractors that work via a personal services company (“PSC”).

What were the issues in the case? Read on to find out >


	Market Analysis
	Agency Workers Report Not Receiving Any Holiday Pay



	Despite the fact that all workers are legally entitled to a minimum of 28 days paid holiday per annum (pro-rated accordingly for part-time workers), new research by the Resolution Foundation reported that just over 40% of all temporary workers, including 22% of agency workers, were not receiving it over the period 2016-18. The From Rights to Realities report also highlighted that almost one in ten workers (9%) are still not receiving a pay slip. This included 12% of agency workers.


	Media Coverage The Guardian Sort your finances and your downtime' – the unwritten rules for small businesses run from home Read Article > Recruiter Suspending Parliament fatal for jobs market Read Article > IT Contracting Umbrella companies and the off-payroll working (IR35) rules Read Article > Staffing Industry News Number of temporary employees down 6.9%, employment at joint highest on record Read Article > Recruitment International Unemployment rate remains low at 3.8% Read Article > Recruiter Employment figures at odds with hiring confidence among employers Read Article > Recruitment Grapevine Experts respond to resilient employment figures Read Article > Staffing Industry News Chancellor commissions independent review of loan charge Read Article > Recruiter Government launches independent review into loan charge scheme Read Article > Global Recruiter IPS Administration becomes latest FCSA Accredited Member. Read Article > Contractor Calculator Off-Payroll: ‘assignment rates’ pose problems for contractors, agencies and clients Read Article >

Upcoming Events

IR35/Off-payroll Reform - Yes, it's happening! Recruiters, are you ready? Seminars

Hosted by FCSA in association with EY and Qdos

Dates & Locations

09:30 – 12:30 Wednesday 25 September 2019 EY, 2 St Peters Square, Manchester

09:30 – 12:30 Tuesday 15 October 2019 EY, 1 More London Place, London

With just a few months until the IR35/off-payroll legislation comes into effect for the private sector, we are asking the UK’s leading recruiters – are you ready?

As the UK’s leading independent compliance accreditation for employment intermediaries, FCSA is inviting recruitment businesses to attend a FREE SEMINAR for unbiased views from experts on how the off-payroll legislation will affect your company.

We are bringing together prominent industry figures from EY, Qdos and FCSA who will share their knowledge, insights and expertise to help you prepare for the changes.

This is your chance for open, honest and truly independent discussion with leading experts – so come along and bring with you all the questions that you dare not raise with HMRC.

This event is a must-attend for senior professionals from the UK's leading recruitment businesses. This event is for recruitment business only and places are limited. Booking is essential and early booking is advised.

How to register

Manchester Event - Register Now >

London Event - Register Now >

Recruitment Agency Expo Birmingham 2019
2nd & 3rd October 2019
NEC Birmingham

What does the future of recruitment look like? How is our industry evolving? Once that future does arrives, will you be ready to thrive? Discover the answers to the industry’s biggest questions by attending the next Recruitment Agency Expo in Birmingham.

A bi-annual event shared and attended by an entire industry and all its supporting services. Over the course of two days more than 3000 senior figures come together to listen to recruitment’s most important voices. Fresh ideas are shared. Innovative products and services are given a platform. Recruitment professionals are offered free access to the biggest networking event of the year.

FCSA are proud to once again be a Partner for this expo and don't forget to visit us on stand 32.

Register Now >

TALiNT For Their World Leaders In Recruitment Conference 2019

Tuesday, 29th October 2019

Natwest Conference Centre, London

FCSA are delighted to be partnering with TALiNT for their World Leaders in Recruitment Conference.

World Leaders in Recruitment is regarded as one of the highest-profile events in the industry. It returns this October to provide HR and recruitment professionals with rare access to some of the industry’s top thought leaders combined with business-critical content and analysis.

This one-day conference has an excellent line-up of keynote speakers including FCSA’s chief executive, Julia Kermode as well as James Reed, Peter Searle, Bev White and Sharron O’Donnell to name but a few.

For more information and details of how to book, visit the TALiNT World Leaders in Recruitment Conference website >


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