The six measures are:

• Reduce employer National Insurance Contributions (NICs) to incentivise job creation
• Fund SSP for every worker so no one is disadvantaged or left behind by this crisis
• Open up the Apprenticeship Levy so people who need to retrain to find a job can be supported
• Remove unnecessary red tape when finding work with the use of technology
• Ensure key sectors to our economy can access the people they need, including through the new immigration system
• Make recruitment experts central to all job-finding support services.

Elements of the plan have been prompted by concerns that thousands of key workers could be disadvantaged because of the risk of falling ill or self-isolation and its impact on the provision for Statutory Sick Pay (SSP), the REC has said.

A statement from the REC said: “Small and medium enterprises (SMEs) with less than 250 staff can be reimbursed for SSP if their staff cannot work due to Covid-19. However, this means most EME recruitment businesses supplying temporary workers are ineligible for the rebate because, while they are SMEs, they are responsible for placing many more temporary staff in other businesses.

“These include sectors that are vital to the economy right now such as logistics, education and care, where staff may not simply be able to work from home.”

The statement went on to say: “Creating opportunities for temporary workers in a pandemic is a big financial risk for small recruiters who could face a huge SSP bill if their temps are required to self-isolate. This means potentially fewer work opportunities being created for temps just as businesses need them.”

The statement cited a case of an REC member, which places temporary staff in healthcare, education and other sectors, who is ineligible for SSP support despite just having 13 members of staff. On any given week, the company pays approximately 190 temporary staff but because not all temps work every week, they are deemed by HMRC to have more than 250 staff on their payroll.

REC CEO Neil Carberry said: “Our six-step plan outlines exactly what needs to happen next to lay the foundations of the recovery, including incentivising job creation and retention by reviewing the tax system including IR35, reducing employers’ NICs and working with the recruitment industry to support people who have lost jobs to transition into new, growing industries.”

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