Law Sector Report April 2020 – Employment Law Focus

April 2020

Whilst the long term impact of Covid19 has yet to be seen, the immediate consequences are significant. Between the delay to the implementation of IR35, through to the widespread furloughing of staff, not to mention the impact of social distancing on the ability to onboard new staff, the net impact has been a freeze on hiring. While the surge in recruitment that happened last year, (in Q2 2019 there was a spike in hiring, with volumes up by 21.1%,) in part to enable firms to have the resources to advise clients regarding IR35 has subsided, April 2021 will come soon enough and when it does, HMRC will expect business to be ready.

Nonetheless, the immediate priorities of advising businesses on furloughing regulations are likely to result in an immediate increase in work, where the challenge for Law Firms is that this is likely to be the new normal, especially as businesses start putting in place redundancies once the scheme comes to an end.

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