One in five public sector hirers reduce use of contractors after IR35 rule change

Four years since off-payroll working came in for the public sector only one in five organisations have reduced the number of contractors they use

Some organisations have changed their recruitment strategies to target permanent employees in place of off-payroll contractors or moving personal service company (PSC) contractors onto their payroll to avoid having to consider the off-payroll working rules; this was also considered a means of reducing costs and providing more stability to the workforce. However, these figures were low with an average of 6% moving contractors onto payrolls.

A change in legislation from April 2017 placed the responsibility for the assessment of employment status of off-payroll workers on public sector employers.

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