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Here you will find articles, blogs and discussion documents written by the employees and partners of Resource Management. It is designed to provide a forum for sharing facts, thoughts, theories and emotions about all things related to recruitment; as such we would encourage you to comment as often as possible. In addition to this, if you would like to use The RM Blog to share some of your own articles, please make contact with us here.

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Friday 14 March 2014

New Contingent Workforce Legislation – Are You Ready for the Next Challenge?

Following on from the recent high profile tax evasion cases such as Jimmy Carr, Chris Moyles, Take That and The Student Loans Company extensively covered by the press, HMRC will be tightening the reins on tax avoidance schemes.

In April 2014, new UK legislation will be introduced that will affect how businesses manage their contingent workers, and the impact of that engagement on the end client.
 
Clearly, there are many advantages associated with engaging contingent workers. However, to ensure that you maximise those benefits you need to minimise any potential risks. Some key questions your organisation should know about the entire contingent population at the drop of a hat are:

 
•              How many contingents are there?

•              Are the resources temps, contractors or consultants?

•              How much does that population cost you?

•              How much is the person being paid?

•              How much are third parties charging?

•              Have they been pre-screened, including references and eligibility to work in the UK?

•              In what areas of the business are they providing services?

•              How do you track their movement within the business?

•              How long have they been there?

•              What does the supply chain look like?

•              Have you ever audited your suppliers?

•              What does the contractual agreement look like?

•              What cross checking happens during the payment of invoices?


Are you in a position to answer these questions?

When the new legislation arrives, such issues will become even more critical for you to tackle as it becomes imperative that you effectively manage your ‘hidden’ contingent population. Over our next few blogs we will provide you with more advice on how to deal with the challenge of managing contingent workers in light of the changing legislation, which will help to protect you from paying the costs of negligence further down the line.

 

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