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05 Feb 20211 minute read

New report urges more direct employment

New report urges more direct employment

With the introduction of changes to IR35 due to come into force on 06 April 2021, the Joint Industry Board (JIB) is urging clients and large contractors to enforce direct employment in their workforce and build back better by investing in the skills which are needed to meet the demands of the industry and deliver a safer, more productive environment for the future.

This comes on the day the JIB released a compelling and authoritative report; Direct Employment - A study of Economic, Business and Social Outcomes based on the Electrical Contracting Sector which highlights the negative impact which the steady growth in non-direct, off-payroll working is having on the UK electrical contracting and construction industries.

The report acknowledges that subcontracting and self-employment remain essential features of electrical contracting and other parts of the construction industry but suggests that the balance has been allowed to tip too far away from direct employment.

Jay Parmar, Chief Executive of the JIB says: “Despite far higher levels of non-direct working in the UK than almost anywhere else in the world, and the well-documented negative effects on (among other things) construction productivity, skills and safety, the leadership and collective will to do something about this issue has long been lacking.

“This report therefore calls for a comprehensive and sustained campaign to reverse this trend, as a key part of current efforts to build a better, more productive, higher skilled and sustainable UK construction industry.”

The full report is available to download from the JIB website.