COMPLIANCE
A roundtable with Margaret Beels
Paul Chamberlain, partner and head of employment law, JMW Solicitors LLP, provides an overview of the areas discussed at a roundtable session held with Margaret Beels, the director of labour market enforcement (DLME)
O n 8 February 2024, JMW Solicitors LLP hosted a roundtable event with Margaret Beels, the DLME. In attendance were also several delegates from various organisations across a host of employment sectors. The session commenced with a presentation from Ms Beels, which provided insight into her role and aims in respect of: l labour market compliance l improving employment rights l tackling the exploitation of vulnerable workers. Following the presentation, attendees at the event were presented with the opportunity to engage in meaningful and insightful discussion about pertinent employment issues such as holiday pay, employment status and national minimum wage (NMW). Overview of the labour market enforcement strategy As part of her role, Ms Beels produced the Labour Market Enforcement Strategy 2023/2024 , which was published in October 2023 and aimed to assess the scale and nature of non-compliance in the labour market, along with setting a strategic direction to address such issues. Specifically, the report focussed on four strategic themes: l improving the radar picture l improving focus and effectiveness l more engagement and support for businesses and workers l better joined up thinking between the labour market enforcement bodies: m The Employment Agency Standards Inspectorate m HMRC’s NMW Team
m The Gangmasters and Labour Abuse Authority. The strategy was informed following considerable stakeholder participation, including a call for evidence (CfE) conducted in 2022, follow-up submissions and a series of stakeholder events. In addition to this, the devolved administrations in Scotland, England and Wales were also consulted. In response to the 2022 CfE, several concerns were raised regarding non-compliance within the labour market, including, but not limited to:
as well as concerns regarding underpayment of workers in accordance with the NMW.
Misclassification of workers There were worries regarding the misclassification of self-employed workers, particularly within the gig economy. Digital and online recruitment platforms As the use of these types of platforms has become more widespread, the risk of scams and fraud has also increased. Practical considerations It’s important for employers to consider the impact non-compliance can have on their business and to ensure necessary steps are taken to prevent this. One of the key takeaways from the roundtable event was the importance of employers remaining well informed and recognising any risks which could arise. Further, employers should ensure they have active compliance strategies and robust policies in place so that both the business and its workers are protected. Where issues are encountered, employers should be proactive in reporting them and should seek help to address them appropriately.
Umbrella companies The most common concerns raised related to the lack of transparency around the enforcement of employment rights and pay arrangements. Further, concerns were raised about the use of joint employment models due to the impact they could have on worker protections. Workers within the agriculture and care sectors Concerns were raised because of the increased number of workers within these sectors deemed to be at risk due to working in isolated environments, not being remunerated in accordance with minimum wage and not receiving formal contracts. Hospitality The CfE further highlighted the impact labour shortages have had on the hospitality sector,
What next? In preparation for the Labour Market
Enforcement Strategy 2024/25 , additional evidence has been gathered by Margaret Beels through a series of roundtables which took place in June 2023. In addition to this, a further CfE was concluded on 8 September 2023. The Labour Market Enforcement Strategy 2024/25 was presented to ministers before the end of March 2024 and is currently awaiting publication. n
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
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