CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

The detailed guidance is intended to complement existing employment status guidance and will provide the following help:

• employment status and how it determines the employment rights individuals are entitled to and for which employers are responsible • factors determining an individual’s employment status • special circumstances and recent developments in the labour market • how employment status should be determined for different sectors • where to go for further information.

The governments consultation response highlights the following points and area to look out for in the future:

• 162 formal responses received, predominantly from representative organisations and trade unions • Large number of respondents were supportive of employment status reform, however, there is no consensus on how this can be achieved • “The government recognises that the employment status framework for rights works for the majority, but that boundaries between the different statuses can be unclear for some individuals and employers. However, the benefits of creating a new framework for employment status are currently outweighed by the potential disruption associated with legislative reform. Although such reform could help bring clarity in the long term, it might create cost and uncertainty for businesses in the short term, at a time where they are focusing on recovering from the pandemic.” • The government believes the three-tiered employment status framework is still the correct approach for the UK labour market • Increased transparency for individuals is needed. This resulted in the guidance published alongside the response • The “Calculation the Minimum Wage” guidance will be updated to clarify the interpretation of “working time” for casual and gig economy workers • The government is addressing delays in the tribunal system to speed up cases for both individuals and businesses • The Government recognises there could be some benefits to greater alignment between the tax and employment status systems, but has decided now isn’t the right time to bring forward proposals There are some strong commitments here, however, no timescales in terms of reform. It will take time to assess the impact of the detailed guidance offered or if greater changes are needed to simplify, clarify and ensure ease of compliance.

Back to contents

Keep an eye on: the Brexit Freedoms Bill Published: 13 October 2022 Emailed: 19 October 2022

While news of the Growth Plan has dominated the news, it is easy to miss things that could affect you. One such thing is the Brexit Freedoms Bill.

This bill will amend, repeal or replace and EU law that still has special legal status on 31 December 2021. This will mean all retained EU law will cease to be applicable in the UK, unless specifically brought into the UK statute.

We will need to dive into which law is to be scrapped and which to be made part of UK law as we get more information. However this has the potential to impact employment law, tax law and other statutory rights.

The bill will apply to all parts of the UK, allowing devolved administrations to rebuild legislation as they see fit.

The full press release from Department of Business, Energy and Industrial Strategy (BEIS) and Jacob Rees-Mogg explores the governments plans in further detail.

Back to contents

Keep an eye on: Economic Crime and Corporate Transparency Bill

cipp.org.uk

Page 30 of 238

Made with FlippingBook - Online magazine maker