RECRUITMENT COMPLIANCE ACROSS YOUR SUPPLY CHAIN

The recruitment world is a complex web of Government legislation and employment law, and it can be overwhelming to keep track of the continual changes.

The introduction of IR35 into the private sector, and the move to digital Right To Work (RTW) checks following a successful trial during the height of the pandemic, are just a few examples of recent changes organisations needed to manage to continue to engage their workforce compliantly.

Where organisations engage multiple suppliers to manage recruitment on their behalf, the requirement to manage changing legislation becomes even more crucial – to avoid fragmented processes and the risk of non-compliance.

UNDERSTANDING WORKFORCE COMPLIANCE

There is Government mandated legislation across a wide range of workforce management areas, from checking candidate eligibility to work in the UK during the application process, to managing day-to-day employment. Where workers are engaged on a temporary basis, additional legislation also needs to be carefully considered and effectively managed to ensure compliance.

Although not a definitive list, below identifies some areas where employment law and legislation play a crucial role in managing a worker:

• Right To Work Checks (RTW)
• Off-payroll working (IR35)
• Working Time Regulations
• Agency Worker Regulations (AWR)
• Equalities Act 2010
• Taxation and pensions
• Working agreements (such as NAECI)
• Industrial Relations
• General Data Protection Regulation (GDPR)

Where several different people are involved in the daily management of workers, both within the organisation and supply chain, a well-defined workforce management strategy is needed to effectively manage compliance.

KNOW YOUR RECRUITMENT SUPPLY CHAIN

Do you manage all your workforce recruitment internally, or do you also engage suppliers? How many recruitment agencies support you? Do you have a clearly defined recruitment process that they all adhere to? Who’s monitoring this process and ensuring it is followed every time and who is responsible for identifying any adaptations needed to comply with new legislation or updates?

It’s a lot of questions, but where organisations work with external recruitment agencies to support their workforce requirements, it’s important to know that legislation is being followed and that there is full compliance across the supply chain. 

CONSIDER A CENTRAL APPROACH TO COMPLIANCE

Whilst the burden of responsibility may sit with a recruitment agency for not meeting the legal requirements of certain employment laws, the wider impact of non-compliance and associated negative coverage could have a damaging effect on your brand name and reputation.

“The engagement of people is a vital area for any business, as organisations need to bring on board the right people with the skills and expertise to help them deliver their business strategy and grow their revenue. It’s one of the most complex areas for business leaders to navigate, and it’s crucial that employment law and changing legislation is effectively managed to ensure compliance and minimise risk.”

– Will Fossey, Linx Director

Where multiple suppliers are being engaged to deliver recruitment services, it can be difficult to ensure a consistent approach and process, without dedicating a large amount of internal resource to manage the supply chain.

That’s why organisations often prefer to partner with a workforce solutions provider who is tasked with managing the supply chain and reporting directly back to the organisation’s senior leaders – to provide a single point of control for compliance. This approach gives organisations greater transparency over their workforce, with the ability to drill down to supplier level through regular audits and analysis undertaken by the workforce solutions provider.

Any necessary changes to recruitment processes to meet new or changing legislation can be managed centrally and implemented across the supply chain with a consistent approach. Before undertaking a comprehensive review to ensure all processes are being put into action regardless of how the worker is being recruited.