Going above and beyond to ensure that your firm is compliant throughout the recruitment process is a necessity. You may remember the infamous case a few years back of a Swedish pilot who flew passenger jets for 13 years without a licence - after training himself on a flight simulator, and making his own flying permit. This shocking case shows the severity of outcomes of non-compliance and the potential risks. To guarantee that your business is never associated with such scenarios, or even incidents on a smaller scale, it’s vital that you have the right tools and processes in place to meet regulations.
Why must you ensure compliance in recruitment?
It’s crucial to ensure that all recruitment processes comply with employment legislation, local legislation and internal company compliance requirements. Failing to do this can have severe consequences for your business, its reputation and your bottom line. With potential risks to your employer brand coupled with the possibility of breaking the law, this shouldn’t be taken lightly. It’s important to protect yourself against any applicants who may be bending the truth, especially as this is more frequent than some may think. According to data from Safe Staffing, up to 75% of all job applications contain inaccurate information.
What you need to consider from the start
Increasing your headcount can often be a taxing and stressful time for a business, and while many firms become occupied in finding the perfect candidate, it can be easy to overlook small details. However, before you begin engaging with potential applicants, it’s crucial that due diligence is taken from the start and that you have compliance protocols in place.
There are a number of laws and regulations to consider when hiring. Depending on role requirements, these checks may include, but are not limited to: criminal record and DBS screening; financial history and credit checks; employment and personal reference verification; academic and qualification checks; passport and VISA verification; directorship search; social media checks; driving licence check; searching global sanctions; confirming the candidate is an FSA Approved Person; medicals; Payment Card Industry Security Check; or GMC or NMC checks. While this list may seem extensive, these checks are designed to ensure that you have the right person secured for the position. It’s important to remember that the best method of hiring is based on facts and not instinct.
What’s new in 2020?
One particular regulation change has become a major concern for businesses across the UK – IR35. The updated off-payroll rules for the private sector, which come into force in April 2020, mean that businesses engaging independent workers will become responsible for setting the tax status of these individuals. As part of this reform, the tax liability will also transfer from the contractor to the fee-paying party in the supply chain which is typically the recruiter or the company that directly engages the individual.
As the Government’s CEST tool is not always reliable, companies will need to carefully consider how they will make determinations. With the penalties for errors often falling on employer’s shoulders, this shouldn’t be taken lightly. Additionally, the draft legislation states that in order to comply, the fee payer must provide its reasons for the final status determination to the party contracting with it in the supply chain and the worker, so this should be thought about in advance too. Employers must also be cautious in taking “reasonable care” when making determinations. What this means exactly hasn’t been outlined as of yet, however, to be safe, it’s advised that you track your steps and communicate with all parties involved.
Getting things taken care of
When it comes to guaranteeing recruitment compliance, we advise that businesses should consider the value of seeking advice from a professional. With Brexit on the horizon, it’s predicted that the next few years will bring further complications around navigating employment laws. Effectively screening candidates and having a robust recruitment process in place is absolutely essential, and an expert can assist in doing this without impacting time to hire or other key metrics.
If you’d like to find out how we can help your company in ensuring compliance in recruitment, get in touch today.