The Digital Right to Work Checks are on their way and very soon will be in use by employers.
Right to Work Checks have been in place for many years. If a business employs someone who does not have a right to work in the UK, they face hefty fines. These checks pre-covid were done in person with the business taking a copy of the employee’s documentation.
During covid, temporary methods were brought in to allow for an alternative. Well from 1st October, there are now permanent solutions for these checks to be done online. This will be useful for anyone not physically at their place of work.
This seems like a particularly good solution for those such as contractors. It is also convenient and should be easy.
What kind of reception is expected for this with contractors and employees? Well, there do not seem to be many issues at all. Some might expect issues to arise around the security of documents, but it does not seem so.
Yet looking at it from the other side paints a different story. Some businesses have said they do not yet feel they have all the information they need to begin this process. The government have recommended the use of an IDSP or Identity Service Provider to provide this service.
What would IDSP or Identity Service Provider mean for businesses?
This will ensure protection of the sensitive information belonging to that worker. It is not a mandate, but it is likely that businesses will want to use IDSPs. Yet many do not even know this is an option currently.
Even when they do, there is another issue. There are hundreds of thousands of businesses in the UK. Many of them have employees or contractors working with them. There are currently only eleven IDSPs in the entirety of the UK.
So far, they have been doing trials and responding to a much smaller demand than they will need to do. Some of them have very much struggled with this. In addition, the reforms are reasonably new and implementation has been quick.
Has there been enough time for the government to expect every business to be on board with this? It is certainly something businesses can be concerned about. While it will provide benefits, it is still a new process to complete within the limits of resourcing.
As with most things brought in by the government, there are both good and bad aspects to this change. It could be particularly beneficial for contractors and freelancers who may save a trip to the office. It may also be useful for those who primarily work from home.
However, if businesses are using an IDSP there could be some delays to getting the checks done. This might mean later than expected start dates for example. It is hard to be sure what these issues will be until it happens.
Perhaps more IDSPs will sprout up quickly and meet the demands of businesses that want to use them. Hopefully these will be teething problems that are easily rectified.
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Is the Prime Minister Under Pressure Already?
As we all know by now, we have a new Prime Minister.
She was elected with just over 57% of the vote, beating rival Rishi Sunak to the top spot. Bearing that in mind, Liz Truss has only just made her way into Number 10. She has barely had time to get her feet under the desk.
Yet there are already employment and business groups putting her under pressure to make good on promises she has made. Some might say she has only just arrived and with the sad loss of the Queen, has other priorities. Others expect work to start yesterday, and they do not seem to mind being vocal about it!
Several national associations that deal with employment and business have been wishing her congratulations on her success. They have not stopped there though, some have already been talking about their issues.
The Chair of the Federation of Small Businesses noted that her campaign had entrepreneurs and small business at the heart of it. He has called on Truss to deliver in supporting small business who are threatened by ongoing economic issues. He particularly highlights that 16 million people in the UK work in these small businesses and jobs depend on their success.
They are hoping for tax cuts and limits on bills. The Confederation of British Industry are similar. Like many, their initial concerns were over bills and businesses saying they would likely have to close. As these have been capped for a six-month period to cover the winter, their concerns have turned to other business costs.
Recruitment and Employment Confederation
The Recruitment and Employment Confederation are more concerned with off-payroll legislation. Very recently, Liz Truss said she would look at this if she was successful. Now they expect her to follow up on it.
They are hoping for reductions in National Insurance as well as reviewing IR35, as in their opinion it does not work. They also want to reduce ambiguity in tax status for businesses. IPSE on the other hand focuses on the cost-of-living crisis, employment status and Managed Service Company legislation.
This is in addition to their concerns about IR35 which they have been very vocal about over recent months. All of these organisations have their own priorities. Each and every one of them will be expecting Liz Truss to meet the needs of their members.
With the British Chambers of Commerce predicting a recession to come in 2022, Liz Truss begins on the back foot. Surging energy and food prices, the fallout of Brexit and the ongoing repercussions of the pandemic.
No one could see this as a good time to take the leadership role. But taken it she has and there is work to be done. There is no doubt that some organisation or another is going to highlight this to her every single day. The interest will be seeing exactly what she does choose to do.
Will she make good on her promises and be willing to focus on these issues alongside other priorities? Only time will tell.