Civil Engineering Procedure, 7th Edition, published by the Institution of Civil Engineers (ICE), defines a labor rule agreement (WRA) as: Labor rule agreements are used in the construction industry and in similar fields. These are national agreements between unions and employers across the country that set out the conditions that apply to certain categories of hourly workers. The employees concerned are generally those whose work takes place in different locations and not on the employer`s premises. Construction Industry Publications has published the latest agreement on the working rules of the Joint Council of the Construction Industry (CIJC) and the accompanying guide to the agreement on working rules. The ICJC`s agreement on working rules is the largest of its kind in the industry. Negotiations take place between employers and trade union representatives (from Unite and GMB). These books describe all the trades in the industry and include the latest changes to the CIJC. This includes the 2018 wage enactment, in which the wages of around 200,000 British construction workers will rise. The agreements provide details on what workers need to be paid in terms of commuting and subsistence, night pay, etc., in order to give workers certainty about what to expect from their employers. However, in the absence of further guidance from HMRC, the tax situation of the amounts covered by the agreements would remain uncertain. Indeed, the rules for deductibility of travel and living expenses vary depending on how long the employee works at a particular location and whether the following amendments to the work rules agreement have been provided by the Joint Construction Industry Council and will come into effect on Monday, June 24, 2019.
Although these are voluntary, their use as a guide helps to create a level playing field in the construction industry. Such agreements can help avoid labour disputes and simplify the process of negotiating terms between a very large number of different employers and employees. In addition, expenses such as travel and accommodation expenses paid to employees under a WRA are not considered income for tax purposes. HMRC explains on EIM 50605ff. how certain construction and civil engineering employees can receive travel and accommodation allowances under standard work arrangements without tax being deducted under PAYE. Working arrangements are developed between employers` associations and trade unions and set the working conditions of many workers in construction and related sectors. The Joint Construction Industry Council (JC) Labour Rules Agreement is the largest such agreement in the construction industry, covering more than 500,000 workers. The 500,000 workers are subject to the minimum wage rates set out in the agreement, and most fall under the entire agreement, which includes, among other things, travel expenses and fares. **The original promulgation was published on May 24, 2019. However, the Fare & Travel scales had been miscalculated and this promulgation replaces them with the correct figures.