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Coronavirus - Employment and Regulatory Law Changes

With the advent of Coronavirus, the employment and regulatory law situation is changing constantly.

There have been so many announcements, but amongst the less-heralded yesterday was a statement that the changes to IR35 will be postponed for a year until April 2021. This will be a relief for many medium sized and larger businesses who engage self-employed contractors through the contractor’s service company as well as to contractors themselves. Medium and large sized businesses would have taken responsibility from this April for tax and National Insurance contributions which HMRC assessed as being due on the basis that the reality of the relationship was one of employment. The change will also remove one impediment for those working through service companies to gaining contracts with businesses – albeit that many larger businesses had already decided no longer to engage with personal service companies.

On a wider basis, the changes announced by the Government earlier this week are already having a major impact. Businesses are actively looking at contracts to see whether they include a right to lay-off or put employees on short term working, others are looking to introduce short term changes to employment contracts and starting redundancy processes.

Unprecedented times. Take care!

Nigel Tillott, Head of Employment  & Regulatory Law


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