QUEEN’S SPEECH IS ‘REASSURING’ FOR THE RECRUITMENT INDUSTRY

Leading industry bodies have breathed a collective sigh of relief in response to the last Queen’s Speech ahead of next year’s general election. Matters discussed in the Palace of Westminster on Tuesday were as expected, revealing some positive news for recruiters and UK businesses.

Plans outlined by the Government on pensions, zero hours and National Insurance contributions all demonstrated a step in the right direction and have been welcomed by professional bodies such as the Chartered Institute of Personnel and Development (CIPD) and The Recruitment and Employment Confederation (REC).

The Small Business, Enterprise and Employment Bill proposes to make life easier for small business starts ups, giving them fairer access to financial support as well as a share of the money spent on public procurement contracts. Measures to reduce bureaucracy will also be taken, and transparency around business ownership will be strengthened through the introduction of a public register of beneficial shareholders.

This corporate ownership bill should help to crack down on rogue traders, by increasing the fines on employers who abuse national minimum wage, and lengthening the time period for which they can be disqualified.

Exclusivity clauses are to be banned in order to make zero hours contracts much clearer for the employee. Such a ban has been declared as the most appropriate solution to the concerns raised, as it focuses specifically on poor practise as opposed to discrediting flexible work altogether.

It is nevertheless necessary, with a recent CIPD survey showing that nearly half of zero hours workers have had scheduled work cancelled without any forewarning, while a quarter say that even when their primary employer doesn’t have hours available, they are prohibited from finding work elsewhere.

Conversely, levels of job satisfaction amongst zero hours workers are comparable to that of the average UK employee – a stat that is regularly used in defence of the contracts. We blogged about this back when the debate at its peak, you can find it here.

The Modern Slavery Bill aims to help businesses be aware of and report on activities across their whole supply chain by insisting on a top down management process. This will work in cohesion with a wider, simplified criminal system in order to secure more convictions and make the protection of victims a main focus.

The National Insurance Contributions Bill will focus on the self-employed in particular by simplifying the collection of class 2 NICs. Powers will be given to Revenue and Customs to enforce payments in cases of tax avoidance, along with the introduction of rules to ascertain which arrangements are designed to avoid, and which are to minimise payments.

Terry Scuoler, chief executive of EEF, the manufacturers' organisation, welcomed the policies what he said were "a number of pro-growth and pro-work policies".

He said: "The government must now keep momentum going for the next 11 months and not stall just as the economy is beginning to motor.

"It is also essential that the legislation proposed does not load any extra burdens on to employers, or remove their ability to recruit and employ in a flexible way to suit their business."