April will be a watershed month for employers, with new IR35 regulations coming into force and changes in minimum wage levels. These changes will mark 2020 out as a year of challenges for employers.
Increase in the National Living Wage
The National Living Wage rises by more than 6% to £8.72. We have already been asked by many of our clients about the effect this will have on those members of the workforce who are currently in the £9 to £10ph bracket, and who will see some of their colleagues receive pay rises above the rate of inflation.
We are currently engaging with clients, to inform them of relevant pay scales within their sector and region, as well as generally ensuring their key personnel feel rewarded and valued. We are encouraging our clients to start thinking about the knock-on effect this baseline increase will have on their entire workforce and consider an incremental increase across the board.
Already the early signs are that demand both for permanent and temporary staff is on the rise, which will put further emphasis on an employer’s ability to retain and attract the quality of staff needed to face the challenges that 2020 will bring us all.
Changes to IR35 regulations
April sees the end of ‘false self-employment’ with changes to IR35 regulations. It will now be in the hands of the end hirer (our clients) to determine whether a role is inside or outside of IR35. In the case of the Driving sector, virtually all assignments will now be subject to PAYE status. You can find more information about this important piece of legislation in our guidance notes here.
At 24-7 Staffing, we have championed paying our candidates through PAYE, and this means when April arrives all our temporary workers will carry on as usual, unlike many of our competitors who will have relied on supplying PSC (public service company) or limited company candidates and will have to pass on sizeable price increases or face losing their candidates. Our experienced consultants working across the Driving, Healthcare, Industrial and Commercial sectors can help you plan any potential supply shortages this legislation will bring.
The Driving and Healthcare sectors have seen a large rise in the numbers of agency staff paid through PSCs or limited companies, however, all our Healthcare and Driving workers are paid through PAYE so we can guarantee a consistent supply of high calibre care and driving professionals.
Whether you require additional permanent staff or ongoing supply of temporary staff, please do get in touch or visit your local 24-7 Staffing branch to speak to one of our experienced team. We have branches in Chippenham, Bristol and Salisbury, supplying temporary and permanent workers to businesses across Wiltshire and the South West.