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Agencies Now Signing Contracts Online

Posted 18-09-2011 by Ifan

Web-based service SignatureSense.com is gaining momentum in the recruitment industry by allowing contracts to be signed online, by all parties, in a matter of minutes.

The conventional approach to signing and returning contracts (a combination of post / fax and email) is often the ‘bottle neck’ in an otherwise efficient placement process.

Larger big-budget agencies have been using “electronic signatures” to sign contracts for years, however SignatureSense’s low monthly subscription fee for agencies makes this modern business practice available to even the smallest of companies.

Alan Whitford, industry veteran and founder of RCEuro.com, the Pan European community site for recruiters, commented on SignatureSense:

“I think that this offering should be a ‘no brainer’ for recruitment businesses, where the time lost in the administrivia of contract administration can lead to lost revenue and poor client service.  The electronic signature ‘wrapper’ is ideal for confirming NDAs, Terms of Business and Contractor Agreements, all in real time. We will certainly be using the service for our future agreements at RCEuro.”

Jon Richardson, Founder of SignatureSense added:

“We are really excited to see that Agencies find such a direct benefit in using our service.  It’s only a matter of time before electronic signatures are common-place, so the ‘early adopters’ are making the most of a great competitive advantage.”

Related Sites:
SignatureSense- ww.signaturesense.com
RCEuro – www.rceuro.com

Working Time Regulations

Posted 11-02-2011 by Ifan

Redego are now able to offer real-time reporting of working hours to agencies.  This enables agencies to ensure that the Working Time Directive (WTD) regulations are being complied with and the added ability to plan future projects with reference to hours worked.
“Agencies can view reports showing which contractors are close to exceeding their maximum average hours” states an Redego spokesperson.  “this makes compliance and planning much easier for agency consultants.  Whilst we always ensured our workers are given their statutory rights, this new system shows agencies and their clients that we are doing this and gives them the ability to use the data to plan furture work.”
The new online system is especially useful for workers on project rates where it has been difficult to monitor rest breaks.  “Its proving particularly popular with agencies who engage manual workers on project rates – the risks of injury and reducing quality of work are much greater for these categories and end-clients want to know its being managed properly.
The new online system lets workers input their rest breaks with the click of a mouse as they submit their timesheet and is very simple for contractors to use.
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Under the WTD regulations, all employers have to ensure that workers have adequate rest-breaks:
maximum hours worked – avg 48 per week in 17 week rolling period
adequate rest breaks, so workers do no more than:
13 hours in any 24 hour period (day) – cap of 13 x 6 = 78 hours
1 days off (rest days) in every 7 day period (week)
statutory minimum holiday periods (28 days not working in addition to ‘rest days’)
Whilst this is the responsibility of the employer (the umbrella company), most clients and agencies reckonise their responsibilty in ensuring they only use compliant umbrella companies that can show they are acting responsibly to protect workers’ welfare.
Another benefit of the new system is greater accuracy when calculating contractors’ National Minimum Wage (NMW) which is a key contractual element of remuneration in most umbrella companies.  Getting this wrong, can attract attention from HM Revenue & Customs (HMRC) both on breach of NMW legislation but also PAYE/NIC compliance as contractor expense claims are invariably affected by minimum wage.

Redego are now able to offer real-time reporting of working hours to agencies.  This enables agencies to ensure that the Working Time Regulations (WTR) are being complied with and the added ability to plan future projects with reference to hours worked.

Agencies can view reports showing which contractors are close to exceeding their maximum average hours.  This makes compliance and planning much easier for agency consultants.  Whilst we always ensured our workers are given their statutory rights, this new system shows agencies and their clients that we are doing this and gives them the ability to use the data to plan future work.

The new online system is especially useful for workers on project rates where it has been difficult to monitor rest breaks.

Its proving particularly popular with agencies who engage manual workers on project rates – the risks of injury and reducing quality of work are much greater for these categories and end-clients want to know its being managed properly.

The new online system lets workers input their rest breaks with the click of a mouse as they submit their timesheet and is very simple for contractors to use.

Under the WTD regulations, all employers have to ensure that workers have adequate rest-breaks:

  • maximum hours worked – avg 48 per week in 17 week rolling period
  • adequate rest breaks, so workers do no more than:
    • 13 hours in any 24 hour period (day) – cap of 13 x 6 = 78 hours
    • 1 days off (rest days) in every 7 day period (week)
    • statutory minimum holiday periods (28 days not working in addition to ‘rest days’)

Whilst this is the responsibility of the employer (the umbrella company), most clients and agencies reckonise their responsibilty in ensuring they only use compliant umbrella companies that can show they are acting responsibly to protect workers’ welfare.

Another benefit of the new system is greater accuracy when calculating contractors’ National Minimum Wage (NMW) which is a key contractual element of remuneration in most umbrella companies.  Getting this wrong, can attract attention from HM Revenue & Customs (HMRC) both on breach of NMW legislation but also PAYE/NIC compliance as contractor expense claims are invariably affected by minimum wage.

Redego implements fee sharing schemes

Posted 02-02-2011 by Ifan

Redego is finding that more and more Agencies are not only looking to generate revenue but also wanting to get service level agreements in place with their payment providers.

With the Agencies Workers Directive now looming Redego also recognises it is key that Agencies must now work closely with their payment providers to guarantee compliance.

Redego agreements are straightforward and typically cover the following areas: -

Service levels

We can agree certain key service levels that may be important to you such as:

·         Advance payments.

·         Payment dates.

·         Contract turnaround time for new contractors.

·         Special compliance requirements (e.g. working time hours monitoring, pay levels).

·         Online services  (e.g. online timesheet management branded as your agency).

Contractor discounts

Depending on volume of business, we can provide attractive discounts available exclusively to your agency.

Revenue generation

With sole supplier agreements we can implement fee sharing schemes, where we agree a percentage of revenues go to your agency depending on number of workers.  This can be between 15% – 55% of fee income.

If you are interested, could you give us an indication of the typical numbers of contractors you have and an idea on how you would like to structure the agreement?  This is with regards to the balance between revenue and contractor discounts.  Then we can provide a definite proposal.

Same-day, every day payment without extra cost.

Posted 01-02-2011 by Ifan

Redego is unique in that it provides real same-day, every day payments without extra cost. Other umbrella companies say they offer ‘same-day payments’ but this often means something other than the Redego offering.

  • One large umbrella company – will pay same-day for an extra fee.
  • Another large umbrella company – pay ‘same-day’ but on the day after receipt.
  • Others – pay by same-day but only on one particular day per week.

Redego pays same-day, every working day (we haven’t missed a day!).

Our customer service promise is to pay contractors’ cleared funds into their bank account on the same-day we receive funds from their agency.

A “Quick Guide” to Redego for Consultants

Posted 07-07-2010 by Ifan

Redego is pleased to announce the launch of our new quick reference guide for consultants to help make your job easier.

View our guide for consultant here.

You are now able to:

You can still always give us a call on 08450 940 060 if you have any questions.

Feel free to add the URL http://www.redego.co.uk/index.php/agency-consultant-guide as a link on your company Intranet.

Agencies duty to check labour suppliers

Posted 04-05-2010 by Ifan

Redego takes stock of the latest HMRC attempt at ensuring the umbrella industry is acting within current legislation. HMRC issued a press release in 2009 regarding their concerns about intermediaries offering services to pay temporary workers (such as umbrella companies).  They also published a ‘Due Diligence’ guide for companies who use umbrella comapanies and other ‘labour provider’ intermediaries.
In the guide, HMRC claim that it is companies duty to check the operation of any intermediaries they use to pay their workers or to face losing ‘the right to reclaim vat’.
Examples of such checks include:
is the labour provider registered and operating in the UK?
what is the directors background (ie. are they professionally qualified?
do they have employers liability insurance (have you seen the certificate)
do they guarantee to pay the National Minimum Wage (NMW), especially where expenses repaid to workers would otherwise reduce their salary</i> to below the NMW.
do they conduct statutory ‘Right to Work’ checks?
do they pay ’self-employed’ workers rather than through PAYE?
do workers have employment contracts?
do they pay expenses to workers without sight of receipts (ie. through dispensations)?

HMRC have issued a new press release on 6 August regarding their concerns about intermediaries offering services to pay temporary workers (such as umbrella companies).

Scale Rate expenses & dispensations

Posted 01-04-2010 by Ifan

HM Revenue & Customs (HMRC) and HM Treasury’s joint consultation to review tax relief on travel expenses paid to workers by agencies and umbrella companies is now taking effect.

They were concerned by the mis-use of dispensations and scale-rate allowances and were considering new legislation. However, in their Pre-Budget Report, the Treasury confirmed that they would not be changing the rules, but would tighten compliance for umbrella companies abusing dispensations.

Beware of Dispensations and Scale Rates

Many recruitment industry newswires were recently reporting this as ‘good’ news, but for those contractors and agencies using umbrella companies that operate dispensations, the warning was in the small print:

“However, in the light of evidence from the consultation confirming poor levels of compliance in this area HMRC will refocus its efforts to ensure that the current regime is properly applied”

Compliance bandwagon

Undoubtedly, many umbrella companies will now attempt to jump on the bandwagon and drop their ‘No Receipts Required’ offerings, but whether or not they have the compliance culture or technology to deliver remains to be seen.

The Redego ethos
Agencies and contractors seeking peace of mind are focusing on the few umbrella companies that have an ethos of expense compliance.

Redego has always believed that ’scale rates’ in the context of umbrella companies are an anomaly and have never used them in over 10 years of operating payment services.

Temporary workers: The application of Tax, National insurance and National minimum wage legislation

Posted 25-03-2010 by Redego

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In the last two years HM Revenue and Customs (HMRC) have seen a growth in arrangements which are variously described as ‘Travel and Subsistence Schemes’ or ‘Mobile Worker Schemes’. These schemes are operated by many businesses involved in the supply of temporary workers to end users: Employment Businesses and umbrella companies.

Treasury focus on ‘false self-employed’ in construction

Posted 30-09-2009 by Redego

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Treasury focus on ‘false self-employed’ in construction
HM Revenue & Customs (HMRC) have been exasperated for many years by the way the construction industry behave as if the rules on paying workers gross don’t apply to them.
They published a new consultation (July 2009) that has the look and feel of the finished article, so its more than likely to become legislation before the end of 2010.
Reading between the lines, HMRC see this as the final attempt to align the construction industry with other sectors and get 300,000 ‘false’ self-employed subbies on to PAYE. Genuine self-employed workers will be able to continue trading by passing a simple 3 criteria test.  To qualify, sub-contractors would have to either:
provide their own plant & equipment (normal tools of the trade do not count!)
provide all the materials for a contract OR
provide other workers
So, how will the construction industry respond?  To be fair to the industry, they have always had to balance between being ‘compliant’ with competing with other contractors who pay workers on a ’self-employed’ basis.  To make matters worse, the test for employment status has always been complex, based on case law and constantly changing, so they could genuinely say they didn’t know whether a worker was self-employed or not.
Now there is a workable status test, and the Treasury’s intention has been clearly stated, most contractors will probably decide that the risk of non-compliance is too great and make arrangements to pay their workers through PAYE.  They can do this through their own payroll or outsource to a compliant PAYE umbrella company, which will give workers the opportunity to claim legitimate expenses

HM Revenue & Customs (HMRC) have been exasperated for many years by the way the construction industry behave as if the rules on paying workers gross don’t apply to them.