Written by FCSA Business Partner, Caunce O’Hara & Co.
I penned my pre-election thoughts the day before the election for our firm’s site mentioning that a hung parliament was likely and whoever ended up in power (with the help of others) needed to remain calm and ensure the country went forward in a unified manner and with confidence. Two weeks on from the election result, nobody could have anticipated the turmoil that has ensued with division in the UK on many levels.
In times of uncertainty it’s always a good idea to take time to stand back and take stock. Our own industry sectors face unprecedented challenges as government is yet to finally form, decide legislation and most importantly steer the country through Brexit negotiations. On the subject of Brexit, in particular, it is abundantly clear that one intention in Europe for there to be a crackdown on tax avoidance schemes and this will undoubtedly impact significantly on intermediaries and recruiters alike. In a recent article published in Recruiter ( 20/06 ), Dr. Sybille Steiner a partner at Irwin Mitchell the law firm notes that implications of such rules in the UK rests on whether we secure a hard or soft Brexit. She notes – “The obligations within the proposals appear to be placed on the financial intermediaries involved in offshore tax schemes and, failing that, the client benefitting from the scheme. While the use of such intermediaries is an attractive option for businesses such as recruitment agencies, all entities involved in tax schemes should ensure that the arrangement is legitimate and that they are fully aware of the relevant legal requirements. It will therefore be important for recruitment agencies to follow further communications from the European Commission and keep up to date with the news on Brexit.”
It’s not just matters like tax schemes that will be considerations for recruiters going forward but importantly the impact of Brexit on supply and demand in the labour market. Recent research from the REC suggests that growth in temporary work has grown of late but candidate numbers have fallen. Tom Hadley, REC director says (08/06) – “The challenges facing the next government are stark. Demand for staff is the strongest in almost two years, but the number of people available to take those jobs has plummeted.”
The continuing trend of daily challenges for UK plc shows little sign of abating and whilst risk and uncertainty prevails it should be a time when recruiters review strategy, documentation and business protection of assets, personnel and liability.
It is to be hoped that all in the employment sector work together to ensure success as we move into uncharted waters.
Article written by FCSA Business Partner, Caunce O’Hara’s Business Development Manager, Adrian Stewart.