Balance needed on self-employment in construction

Monday, 10th January 2011

The Recruitment and Employment Confederation has emphasised the need to strike a balance between stopping false self-employment and ensuring that the UK construction industry retains its flexible workforce.

The REC spoke out after last week's call by UCATT for a Government review of payroll companies in the construction sector.

Under current regulations, self-employed workers must be registered with both HMRC and the Construction Industry Scheme before any payment is processed.

Construction companies work closely with HMRC to verify the status of every sub-contractor paid within the CIS.

REC Chief Executive Kevin Green said: "We are committed to working effectively with the Government to address examples of bogus self-employment.

"However, it is also critical for the UK economy that we promote legitimate self-employment. Only yesterday, the Prime Minister announced that the Government wants to grow self-employment by providing more support for the unemployed to set up their own businesses.

"If we want to retain a dynamic construction industry in the UK we need to retain its use of a skilled and flexible workforce. Payroll companies help the self employed particularly with the administration of pay. Together with the review of iR35, we urge the Government to look into this whole area as part of their commitment to help small businesses and entrepreneurs."

Simon Noakes, Chair of REC Construction said: "Recruitment agencies specialising in construction within the REC work hard to raise standards and to provide a first-class service to employers and contractors. We fully support the effective enforcement of existing regulations.

"It is important to note that the vast majority of self-employed workers in construction choose to work in this way. The idea that contractors are somehow coerced into bogus self employment is wide of the mark. It is also important to recognise that construction businesses need a flexible workforce, especially as the market remains volatile with profits on projects being reduced."

(Source - recruitmentoday.net 10/01/11 Mike Jones)

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