A quarter of UK recruitment firms have no idea whether recent legislative changes will affect their day-to-day operations, despite sustained warnings.
Research from software company Mercury xRM shows that a large proportion of temporary and permanent staffing firms are risking heavy fines by failing to understand the impact of new reporting requirements linked to the Onshore Intermediaries legislation. Some 25% of respondents admitted they did not know whether their existing processes would be affected, while a further 8% thought they would be immune from the changes.
The study also found that 40% of agencies are unsure about how to record documentation for health and safety acceptance or DBS checks. A similar proportion was found to be unable to report unique taxpayer details.
In addition, almost a third (30%) of recruiters do not record documentation for anti-bribery and Professional Indemnity insurance certificates – an omission that could land them in hot water.
Despite the gloom, Mercury’s research found that help is available for staffing firms struggling to cope. Some 64% of respondents said their existing software was able to handle legislative changes, while 100% were confident in their ability to ensure contractors remained compliant at the start of their assignments.
Mark Britton, marketing manager at Mercury xRM, said: “While it is encouraging to see that all the agencies we spoke to are making a conscious effort to remain compliant at the start of an engagement, it’s worrying to see that many are struggling to remain compliant when new changes are introduced.”
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