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ALR Consulting | Ensuring companies are ready for IR35

The challenge

Agree a strategy around the utilisation of contractors following the introduction of IR35 legislation to ensure the client is compliant, risk is minimised, and they maintain business performance.

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What we did

Planning & Audit

1. Created a project delivery team with topic champions from HR, Finance, Procurement, Risk and Legal to review the impact of IR35 and formulate a strategy to ensure that contractors are engaged correctly going forward.

2. Completed a high-level review of the size of the problem for the client in terms of number of contractors and how they are engaged.

3. Meetings with key stakeholders to understand the clients resource model and how they engage contractors at present including operations in place, interactions, and policies.

4. Risk Assessment including responsibility, loss of talent, commercial implications, determination process, and supply chain.

Approval of proposal

1. Prepared and presented a short and medium-term strategy for existing and new contractors to ExCo for approval.

2. Agreement on short and medium-term strategy.


a) Contractor status determination

1. Assessed, recommended, and engaged a Status Determination (SDS) tool provider.

2. The SDS tool provider reviewed all roles undertaken by contractors to confirm if they are in or out of scope. Roles were then amended if relevant or new roles included as required.

3. An assessment of each contractor based on the reality of the engagement. Incorporating a statement confirming the determination and reasoning.

4. Provision of a client-led disagreement process to handle disputes.

b) New process, responsibility & policy

1. Map out the new contractor engagement process to handle reform including amendments to the existing Application Tracking System (ATS).

2. Understand and agree with the role of Umbrella companies.

3. Created an amendment to the existing supply chain agreement with the legal team to ensure compliance with IR35 legislation.

4. Development of an IR35 compliant policy.

5. Implementation of process to move the engagement process to the HR team.

c) Communications plan

1. Development of the communication plan for the short and medium-term incuding knowledge transfer.

2. Confirm short and medium plans to senior leadership, hiring managers, existing contractors & supply chain.

3. Educate key stakeholders including senior leadership, hiring managers, contractors & supply chain on the new process.

End result

Despite the legislation being moved back 12 months, the client was ready for the introduction of IR35 legilsation due to the implemetation of a short and medium strategy in the utlisation of contractors that ensured compliance, reduced the risk around the loss of talent and helped maintain business performance.

What aspect of the project are you most proud of?

Leading a project team of people with different roles/viewpoints to gain agreement on a short and medium term strategy.

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