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BriefingsMishcon de Reya Recruitment Watch - August 2008
WelcomeWelcome to the August 2008 edition of Mishcon de Reya's Recruitment Watch, prepared by the Firm's Recruitment Services Group. Its aim is to provide those involved in the recruitment sector with a snapshot of what has been happening in the world of recruitment in the last month. NewsPolicyThe Treasury has published a consultation paper that proposes reversing legislation that allows temporary workers to claim tax relief for travel and subsistence expenses when travelling to temporary workplaces due to widespread abuse of the concession. Financial Times, 11 August 2008 The latest government guidance on money laundering legislation has confirmed that in most cases recruitment companies will not fall under the scope of the new rules and will therefore not be targeted by HM Revenue & Customs. Recruiter, 6 August 2008 The Recruitment Society is set to transform itself by taking on a greater lobbying role. Recruiter, 6 August 2008 Following the European Court of Justice ruling that Sharon Coleman's employer discriminated against her by refusing to allow her flexible working to look after her disabled son, legal experts have warned that recruitment companies may need to review their equal opportunities policies. MarketAccording to figures from Deloitte the number of recruiters going into administration rose by 175% in the first half of 2008 compared to the same period in 2007. Recruiter, 6 August 2008 A number of accounting and finance recruitment companies are benefiting as employers switch from taking on permanent employees to temporary employees instead due to the economic uncertainty. Trends/PracticeA survey by Ochre House has found that companies are still finding it difficult to recruit and retain employees despite the credit crunch. CompaniesMichael Page International has rejected an unsolicited takeover approach from Adecco. The Times, 6 August 2008 Robert Walters has launched its first office in Thailand following requests from clients. Recruiter, 6 August 2008 Principal Search has opened an office in Hong Kong with 10 locally sourced consultants. Recruiter, 6 August 2008 SThree, a specialist IT recruitment company, has revealed a 24% increase in revenue up to £295.4m in interim results whilst pre-tax profit has increased to £21.8m. Financial Times, 2 August 2008 Greenfleet plc and its two subsidiaries, Longbridge Search & Selection Limited and Qualitas People Solutions Limited, have gone into administration. Recruitment Consultant, August 2008 A new service, the Recruitment Acquisition Network, has launched that aims to introduce prospective buyers, sellers and merger seekers of recruitment companies whilst letting them retain their anonymity until both sides agree to be introduced. Recruiter, 23 July 2008 A new City recruitment division of Huntress Group is being launched, which will cover temporary and permanent positions in the £50,000 to £200,000 salary range. Recruiter, 23 July 2008 Legal DevelopmentsLegislationThe Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations come into force on 27 October 2008. These regulations give all agency workers statutory entitlement to sick pay. CasesThe High Court has dismissed an application for judicial review from Oriel Support Limited, a back-office firm that about 100 recruitment agencies outsource payroll work to, regarding a decision by HM Revenue & Customs that the company cannot remit PAYE due to the Treasury on the recruiters behalf. Recruiter, 6 August 2008 Spot On Recruitment and Drivers Direct have agreed an out of court settlement in a case brought because Drivers Direct refused to pay the level of invoiced commission claiming it had agreed a lower percentage. Mishcon de Reya WorkshopsThe next in our series of Recruitment Services Group Breakfast Workshops held in association with REC and Recruiter Magazine will be on Wednesday 15 October entitled Threats and opportunities during this economic downturn for Recruitment Companies. Followed by Immigration Law Revisited on Thursday 6 November which will be focusing on the changes to immigration laws with specific reference to the updates to the Points Based System (PBS) and logistics of tier 2. Concluding on Tuesday 2 December with a workshop entitled Employees and Data Theft - Fighting the Threat Within. Mishcon de ReyaMishcon de Reya's Recruitment Watch is published by the Recruitment Services Group of Mishcon de Reya Solicitors who were established to meet the demands of their clients within the recruitment sector. The Group is made up of cross departmental specialist lawyers who are able to meet the diverse legal needs of the recruitment industry, with wide and varied experience within the sector and who have a proven track record in being able to meet the growing demand for a one-stop service amongst their recruitment clients. |
IMPORTANT: This briefing note is only intended as a general statement of the law and no action should be taken in reliance on it without specific legal advice. |