Employment Law Changes 2021 – Impact on Property & Construction Industries

Under the new lockdown restrictions, the government has urged all employees to work from home unless they cannot “reasonably” do so.  The very nature of the construction sector means that this is not possible for construction workers and so despite the tighter restrictions they can thankfully continue to work as normal. Of course, the industry has undoubtedly been affected by the global pandemic and the working environment for construction workers will be far from ‘usual’. This however is not the only change that we can expect to see in the property and construction sector in 2021. In this article we discuss a few important changes  to be aware of:

• Immigration and Recruitment
• IR35/off-payroll workers
• Employment Bill Post Brexit

Environment Bill – What does it mean for developers?

Following the UK’s official departure from the European Union on the 1st January 2021, the Environment Bill is set to be one of the most significant pieces of legislation introduced by the Government. The Bill as it stands will incorporate environmental protections covered in EU legislation, as well as introducing the Government’s emphasis on environmentally friendly practice into law.

Working Hours and Managing Stressors

Early in 2020, in direct response to the Coronavirus pandemic, the Government amended Section 74B of the Town and Country Planning Act 1990 to provide a temporary, fast track deemed consent route for developers to apply to local planning authorities to vary existing conditions, or the details submitted under a condition, that limit construction site working hours. If an application is approved, this will temporarily amend planning restrictions on construction working hours until 1 April 2021, unless either another earlier date has been requested by the applicant or is decided upon by the local planning authority, with the agreement of the applicant.

Survey reveals continued IR35 concerns for UK businesses

HMRC introduced the 'off-payroll working rules', commonly referred to as the 'IR35 rules' in 2000, to tackle situations where some contractors took advantage of the tax efficiencies of providing their services through their limited company or another type of intermediary, when in practice they essentially worked as an employee. As such, the IR35 rules apply if the contractor would be an employee if there was no intermediary. Where the IR35 rules apply, a contractor will be 'inside IR35' and like an employee, they will face an income tax and National Insurance contribution burdens. Those 'outside IR35' do not face this.

Non-Domestic Rates – Significant Court of Appeal Judgment for the Property Guardian Sector

London Borough of Southwark v Ludgate House Ltd & Anor (2020) EWCA Civ 1637

Ludgate House Limited (“LHL”), the owner of Ludgate House, has been in a longstanding dispute with Southwark over the rates to be paid on the office block.