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Recruitment agencies could be forced to resort to legal challenges to the proposed false self-employment legislation in order to deal with potentially unquantifiable and uninsurable risk, ASPCo says.
The industry body has written to HRMC warning that it could face challenges under the Human Rights Act and relevant European Union law. The trade body is calling on the government to reconsider how providers of contractors could defend themselves from the actions of dishonest or negligent participants elsewhere in the talent supply chain.
An automatic defence for intermediaries who have acted in good faith but have been provided with fraudulent documents should be in place, APSCo says. This defence should not only apply to situations where a provider of contractors has a direct contractual relationship with the client but also when a complex multi-intermediary talent supply chain exists.
“We do not believe that this solution provides compliant, professional intermediaries with an appropriate defence against the actions of wholly unconnected businesses over which they have no control,” said Samantha Hurley, APSCo’s head of external relations. “And we urge the government to consider the effect of these proposals on proportionality – or to put it in lay terms, ‘fairness’ – rules embodied in the Human Rights Act and relevant European law.
“We also want HMRC to confirm that this proportionality issue has been considered by the Treasury Solicitor or the Attorney General’s office, and if so that it was raised with the Parliamentary Council’s Office, and ministers and Cabinet assured that there is no legal risk,” she added.