The CIPP has submitted its response to the BEIS consultation on increasing transparency in the UK labour market. Much of the content of this consultation document involves areas which are of interest to both HR and payroll departments. The CIPP’s policy team published an electronic survey, focussing predominantly on the areas most affecting payroll.
The key findings of the survey are as follows:
• 55% of respondents have provided a written statement to permanent workers within the past 12 months • 59% of respondents said that individuals receive a written statement before commencing paid employment • The number stating that individuals receive an employment contract before commencing employment rises to more than 70% • The majority of respondents (56%) believe that it takes, on average, less than half an hour to produce a written statement for a new starter • 63% of respondents rarely or never seek legal advice before producing a written statement • All respondents feel that the current prescribed contents of a principal written statement are helpful in setting out employment particulars • 94% of respondents agree that written statements should be provided on or before an individual’s start date • 87% of respondents agree that other parts of the written statement should be provided within two months of an individual’s start date • Opinion was divided as to whether the existing exemptions to the break in continuous service rules are sufficient • Respondents felt more guidance in all areas of continuous service would be helpful • The majority of respondents (57%) agreed that the holiday pay reference period should be amended • 77% of respondents agreed that the holiday pay reference period should either be 52 weeks, or 52 weeks with the option to shorten that period if both employer and employee agree. The responses to this survey reveal that written statements are a helpful way of setting out employment particulars and should be provided on or before an individual’s start date. However, whilst perhaps considered good practice, the evidence in this research suggests that not all employers are providing these statements to new employees. A situation which becomes even less clear, when non-permanent workers are provided through an agency.
Rules relating to continuous service are not clearly understood and respondents feel that clear, comprehensive guidance addressing all areas of continuous service would be helpful.
There is strong support for the holiday pay reference period to be extended to reduce the impact of seasonal peaks and troughs.
The CIPP has recommended that further work should be undertaken to explore how the measures explored in this consultation can be introduced whilst minimising the administrative burden on employers, and should be supported by clear, comprehensive and timely guidance. We will of course keep you informed of the next steps.
Open consultation surveys and formal consultation responses can be found under My CIPP/ Policy hub on the CIPP website.
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CIPP webcast on off-payroll working (IR35) in the private sector 29 May 2018
Listen to a short webcast to find out what options are being considered in the consultation on how to tackle non- compliance with the off-payroll working rules in the private sector.
In the Autumn Budget 2017, the government announced it would consult on how to tackle non-compliance with the off- payroll working rules in the private sector and that consultation has now been published.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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