This is a further response to the furore which has been going on for a number of years after senior public sector workers, such as Ed Lester, Head of Students Loans Company, were criticised for operating as a limited company for tax and NIC benefits while working exclusively for the public sector or Government departments.
Last week's Queen's Speech has indicated that it will clamp down further on the redundancy packages taken by the so-called Friday to Monday workers. That is those who leave a position on a Friday as an employee and return on a Monday as a contractor. Ironically, the same group which were identified as the original IR35 targets.
The measures should be introduced in the proposed Small Business Enterprise and Employment Bill as announced in the Queen’s Speech.
Samantha Hurley, Head of External Relations at agency trade body, APSCo, said:“The proposed crackdown on highly paid civil servants and NHS executives receiving large redundancy or severance pay-offs before taking similar jobs within a year is obviously a good thing.
"APSCo welcomes any action which will call a halt on the practice of over-paying for civil servants who want to exploit the system or take advantage of the so called Friday/Monday activity where they leave full time employment at the end of one week and then commence employment as a contractor, with the same employer the following week.
"However, there will be genuine occasions where a public sector employer simply can’t source replacement talent with the right skills and may have to, after a period of time, engage ex-employees."
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Susie Hughes © Shout99 2014