State of play table 197

Comments

On 18 December 2014, the Home Office and the Department for Business, Innovation and Skills jointly released a cross-government UK anti-corruption plan.

The government makes clear that their intention is to adopt the four components used in the Serious and Organised Crime Strategy, namely:

• pursue,
• prevent,
• protect; and
• prepare.

Further, the plan sets out that the UK government’s immediate priorities are to:

• build a better picture of the threat from corruption;
• strengthen integrity in ‘key’ sectors; and
• strengthen law enforcement response.

In light of the fact that the construction industry has been subject to its own guidance, issued by the authorities, it is clear that the government considers construction as one of the ‘key’ sectors.

Subsequently, all those engaged in the construction industry need to ensure that they are fully compliant with, and have updated their policies to take into account of, the UK Bribery Act 2010, as the government’s focus on the construction industry does not appear to be subsiding anytime soon.

The Department for Communities and Local Government has updated its Party Wall explanatory booklet, to include further guidance on commonly asked questions. In particular, the new guidance sets out answers covering the scope of any party wall award and the role of the surveyor, but it also provides more practical insight such as what people can do if building works become too loud or pose a danger.

It remains vitally important therefore that anyone who may need to issue a notice under the Party Wall Award ensures that they are totally compliant with the Party Wall Act 1996, as the wider public becomes increasing aware of their rights under the Act.

Removal of Employment Tribunals’ Power to make Recommendations

In January 2015, the government confirmed that the Deregulation Bill 2013–14 to 2014–15, which is intended to come into effect on 6 April 2015, will remove the power of the Employment Tribunals to make wider recommendations.

Previously, where an Employment Tribunal had found a case of discrimination, under s 124(2) and (3) of the Employment Act 2010, the tribunal was allowed to make a wider recommendation.

A wider recommendation would contain appropriate steps by which the respondent to the claim could reduce the effect of discrimination on the claimant, but also on other people, in other words the wider workforce.

As set out in the Autumn Statement, the government has published a discussion paper on the use of ‘umbrella contract’ arrangements. The government is concerned that the use of such arrangements enables temporary workers to be paid travel and subsistence expenses free of income tax and national insurance contributions.

An umbrella contract is an over-arching contract of employment, during which the employee may well be considered to be engaged on a series of individual contracts. However, even where the employee is not working under one of the ‘individual’ contracts, they are still employed under the ‘umbrella’ contract.

Any reform of this relief will be brought before Parliament as part of the 2015 Budget, with an intended implementation date somewhere in either 2016 or 2017.

Amendments to the Construction Industry Scheme (CIS)

Also announced in the Autumn Statement were proposed amendments aimed at improving the operation of the CIS. One of the major changes is that the upper limit of turnover for partnerships or companies with multiple directors is going to be reduced to £100,000. The effect of this is that from April 2016, the number of companies and partnerships that qualify for gross payment status will increase.

Another substantial change is that the compliance tests applied for a sub-contractor’s application for gross payment status have been narrowed, for example directors’ individual filing obligations will no longer be taken into account.