BIS BUSINESS WORKING GROUP ON LATE PAYMENT WILL HELP ADOPTION OF APSCo CLAUSE SAYS SWAIN
BIS BUSINESS WORKING GROUP ON LATE PAYMENT WILL HELP ADOPTION OF & lsquo;APSCo CLAUSE’ SAYS SWAIN
The recent news from BIS regarding the establishment of a business working group to examine the issues behind late payment, has been welcomed by the leading trade body for professional recruitment APSCo.
Commenting on the development, Ann Swain, CEO of APSCo said: “We have been extremely concerned for some considerable time about the effect of payment terms on SMEs in the staffing sector. To address this, APSCo, along with the Asset Based Finance Association (ABFA), ran the first Recruitment Business Supply Chain Forum in 2011 and will be running the second on 10th May 2012 at CBI HQ which will be discussing a number of issues that are affecting the Supply Chain and also revealing what has been achieved since the last forum”.
APSCo has been working closely with the market leading RPOs and MSPs as well as ABFA to create a Code of Conduct which defines best practice for this market sector. It includes the use of what has been coined “The APSCo Clause”, which tackles the negative effects of “pay when paid” and “non-assignment of debt” terms that have the potential to de-stablise the staffing supply chain. ”BIS in recognising that there is a problem and by shining a spotlight on payment practices in general, can only help APSCo’s cause to help drive all parties in the Supply Chain to create workable solutions”, added Swain.
APSCo says that it would welcome the opportunity to provide information to the working group on the particular issues faced by smaller recruitment firms. “We have long felt that the key to solving this problem is changing behaviour from the top of the supply chain down, and we would appreciate any help the Government can give in educating end-user clients to the damage such payment terms can wreak,” says Ann Swain.
“We have an excellent working relationship with BIS, and we will definitely be inputting into the working group. We would certainly be keen to see Government and local council procurement leading by example and taking up The APSCo Clause, which would help the stability and growth of many SMEs in the staffing sector.”