News and analysis HR news briefing
The HR news briefing:
Employers must heed Network Rail IR35 FOI request
What you should know:
Concerns were raised about
the extension of IR35 from
public to private sector
employers, after a Freedom
of Information request
revealed that almost all
contractors working for
Network Rail would fall
under the new rules. It was
found that 99% of
contractors working for the
organisation in 2018 would have
to pay employee National
Insurance and Income Tax,
though the classification does
not necessarily mean they would
be entitled to benefits such as
holiday or sick pay.
Andy Chamberlain, deputy
director of policy for the
Association of Independent
Professionals and the Self
Employed (IPSE),
commented: “Network Rail’s
assessment … is deeply
concerning. These people will
now have to pay tax like
employees – without any of
the rights.”
He added that the IR35
process is not fit for purpose:
“The preposterously-high ratio
raises serious questions about
how the assessments have
been made. Network Rail has
openly admitted roles were
grouped together and blanket
assessed, which undermines
Treasury claims that this has
not happened.”
What you should do:
While the changes could be
delayed beyond the current
rollout date of April 2020,
HR professionals should
make sure they are not
caught out, said
Chamberlain: “The
government is still
consulting, and it should
at least pause this, but if it
pushes ahead businesses will
have a very short window
to prepare.”
Employers should treat the
new regulations with caution, he
added: “HRDs who have
responsibility for contractors
should be careful not to jump to
conclusions or to bow to
pressure from HMRC to blanket
assess them within the offpayroll
rules. Each case should
be looked at individually. Most
contractors are still contractors
and can be a huge asset”.
Social mobility stagnant for years, finds report
What you should know:
A report by the Social
Mobility Commission found
that social mobility has
remained stagnant for the
past four years, with just 34%
of working-class people
currently in professional jobs
compared to 32% in 2014.
People from a working-class
background were also more
likely to be paid below the voluntary living wage
than those from professional backgrounds (27%
versus 17%).
In April the government raised both the
National Minimum Wage and the National Living
Wage, though campaigners and unions warned
this would not be enough to end in-work poverty:
“We know there is cross-party and widespread
public support for the real voluntary living
wage, but there are still cleaners, caterers and
security staff working in vital public sector jobs
who are struggling to get by,” said Katherine
Chapman, director of the
Living Wage Foundation.
“It’s time for our major
public institutions to lead
by example.”
What you should do:
While there are no quick
fixes to social mobility
there are steps employers
can take to level the playing
field, said James Bennett, CEO of student
recruitment platform Debut. He encouraged
organisations to start by looking at how they
source talent: “It’s not an easy task, but employers
have to broaden their reach to make sure they are
not excluding high-potential candidates.
“They can also look at the recruitment process;
if you’re not getting different people applying for
your roles, why not? Employers also need to
address culture. One way of doing this is through
looking at your leadership. There’s a lot of truth in
the saying that ‘you can’t be what you can’t see’.”
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10 HR June 2019 hrmagazine.co.uk
All photography: AdobeStock
/hrmagazine.co.uk