A major labour supply company leader has said the postponement of IR35 reforms provides ‘relief’ to the industry at a ‘critical’ time.
Nick Jones, Head of Labour Supply at Fortel, based in Willenhall, West Midlands, has backed the decision to postpone the introduction of the reforms by 12 months,in light of the Coronavirus pandemic and the effect it could have on UK business.
Fortel is one of the largest suppliers of labour to the UK construction industry, with a key focus on infrastructure projects, and is currently going through a period of growth, with a new HQ being built at Junction 10 of the M6.
IR35, which was due to be introduced next month, would have made organisations
responsible for determining whether a contractor carrying out work for them should be treated as an employee for tax purposes.
It will now be introduced in April next year due to the outbreak of the Coronavirus pandemic.
Nick said: “The announcement postponing the IR35 reforms comes at a critical time for the UK labour market.
“It is essential right now to support the application and stability of highly skilled contractors working in our critical infrastructure sectors.
“Such application will help to ensure we have the national capacity, capability and expertise to meet the challenges and complexities in response to the coronavirus pandemic.
“Whilst this is a deferral, not a cancellation, it removes complexity and distraction at a time when the focus needs to be on maintaining critical services and operations across the country.
“We are working with our customers across the sector to ensure we are all in alignment with their interpretation of the announcement and to ensure we optimise the relief the postponement is designed to provide.”
Fortel provides more than 2,000 workers at more than 130 locations across the country and although the recruitment process has migrated online with the latest technologies on hand rather than in person, they continue to recruit the very best talent for customers
during the Coronavirus crisis.