October2022 Outlook on Jobs and Immigration Policies in the United Kingdom
The UK Information Commissioner's Office (ICO) has published a draft guidance on employee monitoring at work, aiming to provide organisations with greater clarity and practical advice on how to ensure their practices comply with UK data protection law. The draft guidance, which is open for public consultation until 11th January 2023, is part of the Regulatory Outlook series, covering various regulatory topics including advertising and marketing, bribery, fraud, competition, consumer credit, consumer law, cyber security, data protection, employment and immigration, environment, food law, health and safety, products, regulated procurement, sanctions and export control, telecoms, and more.
Changes to Right to Work Checks
As of 1st October 2022, employers are no longer able to conduct right to work checks via the adjusted method. Employers can conduct manual checks or use the services of an Identification Service Provider (IDSP) for these checks. It is important to note that employers must obtain and retain a copy of the document that the IDSP checked, together with a copy of the IDVT report.
Employers have a legal obligation to ensure they are not employing individuals who do not have the right to work in the UK. Failure to comply with right to work checks may lead to civil penalties of up to £20,000 per worker and potentially a custodial sentence.
Employee Monitoring and Data Protection
The ICO's draft guidance on employee monitoring at work aims to help organisations ensure their practices comply with UK data protection law. The guidance covers practices such as monitoring telephone calls, emails, messages, employee vehicles, time and attendance, and device activity. The ICO will consider feedback before publishing the final guidance.
IR35 Regime and HMRC Enforcement
The IR35 regime will remain in force in the UK, starting from April 2023. Staffing companies and end clients will continue to be liable for personal service company (PSC) contractor tax. HMRC is expected to focus on enforcement of the IR35 regime.
Regulatory Changes in Germany and the UK
The UK government plans to release businesses with fewer than 500 employees from reporting requirements and other regulations in the future. This is in contrast to the planned removal of reporting obligations and other regulations for companies with fewer than 500 employees being proposed by the German Federal Ministry of Finance (Bundesministerium der Finanzen). This is indicated by the context of reforms and regulatory changes discussed in connection with the Ministry of Finance in 2025.
The changed threshold will apply to all new regulations under development as well as those under current and future review, including EU retained laws. The final guidance will be published after considering feedback from the public consultation. The exemption will be applied in a proportionate way to ensure workers' rights and other standards will be protected.
In conclusion, the ICO's draft guidance on employee monitoring at work and the changes to right to work checks are significant developments for UK employers. It is crucial for organisations to stay informed and comply with these regulations to avoid penalties and maintain a positive working environment.
