APSCo Political Monitor - The Queens Speech
The Small Business, Enterprise and Employment Bill announced in the Queen’s speech on the 4th June will be aimed at promoting small UK business by reducing regulation and improving access to finance. APSCo welcomes the Government’s focus on the payment issues faced by businesses detailed in the speech. One of the biggest issues for the sector is obtaining access to finance where master vendors or RPOs include “pay when paid” and “non-assignment of debt” clauses, both of which make it very difficult for recruitment firms to access finance at an affordable rate. APSCo will continue to work with the Institute of Credit Management and the Department of Business Innovation and Skills to highlight these issues. BIS will be speaking at APSCO’s July members’ meeting.
The Bill is also aimed at clamping down on excessive redundancy payments in the public sector. This will mean that public sector employees who had been earning over £100,000 will have to repay some proportion of their redundancy package if they are subsequently rehired in the same part of the public sector within 12 months. It was also announced that penalties for employers who fail to pay minimum wage will also be increased, while the government will aim to make contracts for low paid workers fairer.
Samantha Hurley, Head of External Relations says:
“The proposed crackdown on highly paid civil servants and NHS executives receiving large redundancy or severance pay-offs before taking similar jobs within a year is obviously a good thing. APSCo welcomes any action which will call a halt on the practice of over-paying for civil servants who want to exploit the system or take advantage of the so called Friday/Monday activity where they leave full time employment at the end of one week and then commence employment as a contractor, with the same employer the following week. However, there will be genuine occasions where a public sector employer simply can’t source replacement talent with the right skills and may have to, after a period of time, engage ex-employees.”