Will sub-contractors become “Workers” by default?
8 February 2018
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8 February 2018
As we predicted the Government has just confirmed that the recommendations of the Taylor Review will be implemented in full. The draft legislation published by the Work and Pensions Committee, amongst other recommendations, contains the details that will make “worker” status the default position for ALL self-employed engagements.
For example, the draft legislation states:
Worker by default
“Relying on individual tribunals as a corrective to companies’ systematic use of questionable self-employment models places an unacceptable burden on workers to address poor practice, while the companies themselves operate with relative impunity. We recommend the Government legislate to implement a worker by default model, as set out in Part 2 of our draft Bill. This would apply to companies who have a self-employed workforce above a certain size defined in secondary legislation.”
What does this mean to you as a contractor who engages sub-contractors?
Once the legislation is introduced sub-contractors that you engage on a regular basis are likely to be deemed workers so will be entitled to certain Employment Rights. Click here to find out what is the definition of a Worker and what Employment Rights they are entitled to.
For a more in-depth view click here to read the full summary of the Taylor Review.
Is CIS payroll compliance giving you a headache? How can you remain competitive, maintain a flexible workforce and remain compliant?
Contact EEBS today! EEBS have a compliant solution with 17 years experience that allows you to engage sub-contractors and remain protected from HMRC providing you with complete peace of mind.
If you want the inside track for compliant solutions with well-advanced notice to the legislative changes that we’ve previously predicted contact EEBS for advice.