In your corner: REC Campaigns and Policy news - 1 July 2021

Well, it has certainly been a very eventful week at the REC and elsewhere. Headlines might have focused on the Euros and the changes in the Department of Health but the end of the grace period for the EU Settlement Scheme and for data flows are also major changes for our industry. This week we also hosted REC2021, our annual conference where we were proud to introduce our Diversity and Inclusion (D&I) ambassadors. Keep reading to find out more and please feel free to reach out to us at policy@rec.uk.com if you want to discuss anything else covered in this newsletter. 

New REC D&I Ambassadors Announced 

As part of the REC's wider D&I work this year, we are pleased to confirm we have appointed two ambassadors to work with us to raise awareness and promote diversity within our membership and the wider recruitment industry. They are: 

• Scarlett Allan-Horton  
• Director of global energy and engineering executive search firm Harper Fox Partners and finalist in the 2019 series of The Apprentice  
• Ugo Monye  
• Former England and Harlequins rugby union star, sports presenter and chair of the Rugby Football Union’s diversity and inclusion advisory group  

The ambassadors will be able to use their experience and knowledge to help raise awareness of how recruitment business can drive a best practice around creating an inclusive and diverse workforce both within and outside of the recruitment industry. 

1 July 2021 brings changes around use of data with the EU and Right to Work checks for EU nationals  

The grace period implemented following Brexit ended on 30 June. This means that there are some major changes for how businesses operate  that will be active from 1 July: 

• Changes in Right to Work checks for EU, EEA and Swiss nationals  

Applications for the EU Settlement Scheme are now closed - although there is scope for late applications. And from 1 July, you can no longer accept an EU, EEA and Swiss passport as proof of right to work. You must check the candidate's immigration status under the settlement scheme. You can find more information in our Legal Guide and the Home Office's Employer Partner Pack. 

• EU recognition of UK’s data protection standards.  

The EU has now recognised the UK's data protection standard and issued an adequacy agreement for data sharing. This will allow for the continued flow of personal data from the EU to the UK and businesses can continue to receive personal data from the EU and EEA without having to put additional arrangements in place. The decision is in place for four years, but it could be withdrawn if UK law no longer gives EU citizens protection over how their data is used.  

Please read our Brexit hub for more information and guidance on these.   

New graduate visas 

Under the new immigration system, the new graduate route is now open for applications.  International students that completed an eligible course at a UK higher education provider can apply and be able to work or look for work after their studies for a maximum period of 2 years, or 3 years for Doctoral students. 

Coronavirus Job Retention Scheme (CJRS) updates and changes 

• Employment Tribunal rules that holiday doesn’t accrue on furlough 

An Employment Tribunal has ruled that a contract for services worker did not accrue holiday while on furlough, a significant move that provides much needed clarity for UK recruitment agencies. This aligns with the government’s guidance on holiday pay and furlough, advice which the Recruitment & Employment Confederation lobbied extensively for at the beginning of the pandemic. Please click here for more information on this.  

• Reduction in Government contribution  

From 1 July, the level of the Government contribution to wages for hours not worked will reduce to 70% (up to £2,187.50) until the end of the month. This will decrease to 60% (up to £1,875) in August and September when the scheme is due to end. The employer contribution will increase to 10% (up to £312.50) in July and 20% (up to £625) in August and September.  

New Secretary of State for the Department of Health and Social Care 

Sajid Javid has been appointed as Secretary of State for the Department of Health and Social Care, replacing Matt Hancock on 26 June. In his first statement as Health Secretary, Mr ‘restoring our freedoms while protecting life and the NHS’ as the department’s immediate priority. Mr Javid has said his aim is to fully vaccinate two-thirds adults in the UK and to lift all social distancing measures by 19 July. The REC has previously engaged with Mr Javid during his terms as Chancellor and Home Secretary and will continue to work with him in his new role. 

Planned lockdown easing across the UK   

Following a four-week delay in lockdown easing, England is now aiming to lift all social distancing measures on 19 July. Scotland also postponed moving the nation to ‘Level 0’ on 28 June and will remain under the current rules until 19 July with a view to remove all legal restrictions by 9 August. Wales has also paused major lockdown easing until 19 July, with a limited number of relaxations in June. Meanwhile in Northern Ireland, the next planned easing is expected on 5 July.   

Research Corner 

The REC’s latest JobsOutlook survey shows a continuous growth in optimism amongst British employers. In the three months to May, business confidence in the UK economy surged by 21 percentage points to net: +11. This is the first time the barometer was in positive territory in 3 years (July 2018, net: +6).  Moreover, employers’ confidence about making new hires and investing in their business (net: +29) was at the highest level since March 2016. Hiring intentions for permanent staff in the short term (in the next three months) and the medium term (in the next 4-12 months) both rose to net: +24.  

The REC is also publishing the latest Jobs Recovery Tracker on Friday and the KPMG and REC UK Report on Jobs next week, so keep an eye out for the latest insight on labour market conditions and business confidence in the economy.