2016 Legislation Updates Reviewed
There were several UK legislation updates impacting construction in 2016 and we wanted to recap on the key issues:
CIS Compliance – The Test
The compliance test for subcontractors to receive payments gross under the construction industry scheme (CIS) has changed in a bid to improve the operation and reduce the compliance burden of the CIS.
Modern Slavery Act 2015
Commercial organisations with turnover of over £36m are required to issue a formal statement each year to comply with the requirements of the Modern Slavery Act 2015.
The Act requires a record to be kept of action taken to ensure their business and supply chains are free from slavery and human trafficking.
National Living Wage
The 1st April 2016 saw the introduction of the National Living Wage which was set at £7.20 per hour for workers aged over 25.
Insurance Act 2015
On the 12th August 2016, the ‘Insurance Act 2015’ came into force. It saw the introduction of a duty of “fair presentation” of risk.
European Single Procurement Document (ESPD)
The intention of the ESPD is to reduce the administrative burden for tenderers.
It allows all businesses to self-declare electronically that they meet the required regulatory criteria or commercial capability requirements.
Only the successful tender will be required to demonstrate compliance.
Health and safety offences
New sentencing guidelines for health and safety offences came into force on 1 February 2016.
Gender Pay Gap
February 2016 saw the publication of draft regulations which intend to address the gender pay gap.
The regulations propose imposing mandatory reporting for employers with a headcount in excess of 250.
Corporate Criminal Liability
The courts approved the first deferred prosecution agreement in relation to the corporate offence of failing to prevent bribery under the Bribery Act 2010 and the Serious Fraud Office brought the first charges against a corporate for the same offence.
In February 2016 Sweett Group was ordered to pay around £2.35m for a breach of the Bribery Act 2010.