How do I guard against contractor insolvency in the construction industry?

Yes. The Land Registry published a new service update on 14 May, here:

https://www.gov.uk/guidance/coronavirus-covid-19-impact-on-hm-land-registrys-service

Importantly, the Land Registry will process registrations where documents have been executed using the Mercury signing approach:

For land registration purposes, a signature page will need to be signed in pen and witnessed in person (not by a video call). The signature will then need to be captured, with a scanner or a camera, to produce a PDF, JPEG or other suitable copy of the signed signature page. Each party sends a single email to their conveyancer to which is attached the final agreed copy of the document and the copy of the signed signature page.

To summarise some further points:

• Most information enquiries are experiencing minimal delays
• Registrations of new titles, such as on sales of part or new leases, and applications to update existing titles, are experiencing more significant delays but can be expedited via the expedite service
• Cancellation dates for replying to requisitions are extended until further notice
• Access to free documents on the land registry portal has been extended to 90 days from completion of the transaction
• Identity requirements have been relaxed. The Land Registry will now raise a requisition for identity documents, and not cancel applications
• Requests for extensions to a notice or objection period will be granted if lawfully possible
• Land charges searches can be submitted electronically with PDF documents

• Audit
  • Identify your off-payroll contractors
  • Determine the status of off-payroll contractors
    • CEST – HMRC employment status checker for tax purposes
• Communication – liaise with affected workforce
• Contracts – get them compliant
• Consider the Ward Hadaway toolkit

Ordinarily, no but during the pandemic, yes.

You can start employing a Tier 2 or 5 worker who is in the UK before their visa application has been decided if the following conditions have been met.

• You have assigned the worker a Certificate of Sponsorship
• They have made an in time visa application (i.e. they made their new visa application before their current leave expired) and they have provided you with evidence of this
• The job you employ them in is the same as the one stated on their Certificate of Sponsorship.

Sponsors should be aware that they should carry out right to work checks before the individual starts undertaking work for them and if their visa application is eventually rejected, they must stop employing them.

Although sponsors will not be able to record migrant activity on the SMS about these workers, the Home Office has confirmed that any necessary reports should still be made on the sponsor’s internal systems.

If the worker is outside the UK, they may be able to start work for you remotely subject to the relevant employment, tax and immigration requirements in that country.

Yes, you should submit a new visa application before your current visa expires.

The visa application is a two stage process:

• First you submit the online application and pay the fee
• Second you attend a visa application centre to enrol your biometrics and verify your passport.

Submitting a valid online application before your current visa expires secures your right to continue living and working in the UK, even after your current visa has expired.

Visa application centres across the world have been closed due to covid19 but are now mostly re-open to enable you to book an appointment to complete your application, albeit some are experiencing a backlog of applications.

• Before any agreed reduction in wages, actual changes to earning patterns (loss of overtime, for example) may impact the pensionable salary as defined under the scheme rules, with knock-on effects to a number of benefit calculations, such as death in service benefits.
• Contractual changes to member salaries may adversely impact accrued benefits as the final salary figure may be reduced to a greater or lesser extent depending on the duration of furlough and the severity of any reductions in wage, and hence reductions may be difficult to agree with staff.
• Reducing employer contributions will be subject to a number of the same considerations applicable to a DC scheme listed above. There will also be a need to change the rules and interact with the trustees, although it may be possible to override the rules with a direct contractual agreement with members.
• Reducing employee contributions will also depend on the scheme rules, particularly as to whether there are any discretionary powers to suspend contributions, or pensionable service.
• The rules will need to be considered for any unexpected consequences of furlough: depending on the wording of the rules, furlough may or may not be considered a leave of absence and may or may not have the effect of terminating pensionable service. This could have far-reaching consequences.
• In particular, if the workforce’s pensionable service is inadvertently terminated as opposed to suspended in accordance with any relevant rule, this could trigger a statutory employer debt on an employer participating in a multi-employer scheme, if pensionable service continues for employees of other employers. This sort of issue is unlikely to be spotted until after the event, and therefore difficult to untangle. However, an employer should be able to take advantage of the “period of grace” provisions by notifying the trustees of its intention to re-admit employees to pensionable service within the next 12 months.
• Clearly the impact of the Coronavirus Job Retention Scheme on DB schemes is complex and legal advice should be sought before any changes are considered.