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Recruitment Watch

Issue 27: November 2024

Recruitment Watch

Editor's Note

Nick Davis - Mishcon de Reya

Welcome to the Winter edition of Recruitment Watch, where we delve into the legal issues that are currently shaping the recruitment services sector. In this edition, we focus on the implications of the new Employment Rights Bill on the Recruitment Services sector, examining some of the key aspects which may impact staffing and recruitment companies.

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Employment Rights Bill

The Labour Government promised that within the first 100 days of its administration, it would bring forward legislation that would give effect to some of the promises made in its manifesto relating to workers.

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EHRC guidance on discriminatory job adverts highlights risks of using generative AI in recruitment

The Equality and Human Rights Commission recently updated its guidance for those placing or publishing job advertisements, to help employers avoid using discriminatory adverts. The revised guidance is a timely reminder for employers to take care when using generative AI tools to draft job advertisements, as AI-created output may include biases that affect the diversity of job applicants and can result in discrimination.

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Corporate fraud: Fail to prepare, fail to prevent

Following an announcement from the Home Office the new corporate criminal offence of failure to prevent fraud will come into force on 1 September 2025. On 6 November 2024 new guidance was published to assist relevant companies navigate the new offence and the prevention procedures to be implemented so that criminal liability can be avoided.

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Autumn Budget 2024

The Chancellor of the Exchequer, Rachel Reeves, delivered her first Budget today, 30 October, under the new Government. Much had been made about the "black hole" in the UK's finances. In an attempt to plug the gap, the Chancellor has delivered a wide-ranging Budget covering most taxes that were not ringfenced in Labour's manifesto promises.

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New tax burden for the recruitment services sector

Hot on the heels of the off-payroll working rules, which transferred responsibility for accounting for income tax and National Insurance Contributions (NICs) for 'inside IR35' contractors from their personal service companies to the staffing companies that engage them, the government is now proposing to introduce legislation with a similar effect in relation to umbrella company workers.

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The effect of the Employment Rights Bill on the recruitment services sector

The much-anticipated Employment Rights Bill was published on 10 October 2024. Staffing companies will be impacted by the employment reforms this Bill introduces both as employers and as suppliers of temporary resource. Aspects of particular interest to staffing companies as suppliers of temporary resource include:

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