MEMBERSHIP INSIGHT
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update on consultation responses and about a new AEO
T he Policy team extends thanks to all those who have taken the time to complete any of our many surveys in the last three to four months. It is your valuable input that informs our responses to all important consultations. UK labour market The government’s response to the Good work: the Taylor review of modern working practices (‘the Review’) included a consultation on increasing transparency in the labour market (https://bit.ly/2E7tn0i). Much of the content involves areas that are of interest to both human resources and payroll departments. Key findings from our survey are as follows: ● 55% of respondents have provided a written statement to permanent workers within the past twelve months ● 59% said that individuals receive a written statement before commencing paid employment ● 70%, however, state that individuals receive an employment contract before commencing employment ● 56% believe that it takes, on average, less than half an hour to produce a written statement for a new starter ● 63% rarely or never seek legal advice before producing a written statement ● 100% feel that the current prescribed contents of a principal written statement are helpful in setting out employment particulars ● 94% agree that written statements should be provided on or before an individual’s start date ● 87% agree that other parts of the written
...strong support for the holiday pay reference period to be extended...
statement should be provided within two months of an individual’s start date ● 57% agreed that the holiday pay reference period should be amended; with 77% saying it should be 52 weeks but with the option to shorten this period if both employer and employee agree ● opinion was divided as to whether the existing exemptions to the break in continuous service rules are sufficient ● more guidance in all areas of continuous service would be helpful. The responses 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 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. Agency workers The government’s response to the Review included a consultation on agency worker recommendations (https://bit.ly/2nOpdjy). information provided to work seekers both in terms of rates of pay and those responsible for paying them ● extending the remit of the Employment Agency Standards (EAS) to cover policing umbrella companies and other intermediaries in the supply chain and to include compliance with the Agency Worker Regulations 2010 (‘the Regulations’) ● repealing the legislation that allows work seekers to opt out of equal pay entitlements (known as the ‘Swedish Derogation’). Our survey, which ran from 6 to 27 April 2018, produced key findings as follows. ● Everyone agreed that a ‘key facts sheet’ would support work seekers in making decisions about work, with the overall response that it should form part of the joining process, e.g. when signing the contract. Survey feedback is that the information in the sheet should be a clear explanation/instruction on what deductions will be made, to whom and show amounts The recommendations include: ● improving the transparency of
| Professional in Payroll, Pensions and Reward | July - August 2018 | Issue 42 4
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