APSCo responds to proposed Small Business Enterprise and Employment Bill announcement
“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.
“APSCo also welcomes the Government’s focus on the payment issues faced by businesses detailed in yesterday’s speech. This is particularly an issue in the recruitment sector, where firms pay their contractors (temporary workers) usually on a weekly basis, and must then fund the time in which it takes to receive payment from the client, and therefore we are in favour of any measures that increase transparency throughout the supply chain. For our members one of the biggest issues is getting access to finance where master vendors or RPOs include “pay when paid” clauses, which mean that the recruitment firm will not be paid until the client has paid the MSP/RPO, and “non-assignment of debt” clauses, both of which make it very difficult for recruitment firms to access finance at an affordable rate.
“APSCo is working with the Institute of Credit Management to produce a sector-specific payment code to deal with these issues, and we’re really pleased that the Government’s consultation response states that it will “tackle contractual barriers such as bans on assignment”. APSCo will continue to work with the ICM and the Department of Business Innovation and Skills to highlight these issues, and BIS will be speaking at our July members’ meeting, to allow our members the opportunity to discuss their concerns.”