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 living expenses paid to employees under a WRA are not considered income for tax purposes. The Joint Construction Industry Council (JIC) 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 are covered by the entire agreement, which includes, among other things, travel expenses and fares. The agreements contain details on what concerns workers in terms of daily travel and subsistence, housing allowances, etc. and give employees confidence in what they can 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 residence allowances vary depending on how long the employee works in a particular place, and the civil engineering procedure, published by the Institution of Civil Engineers (ICE), 7th edition, defines a labor rules agreement (WRA) as follows: Labor rules 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. **Free trials are only available to people based in the UK. We may terminate this trial at any time or decide not to hold a trial for any reason. Access this article and thousands of others for free for 7 days with a trial version of TolleyGuidance.
To see our latest tax tips, sign up for Tolley Guidance or sign up for a free trial. AMRs provide a guide on acceptable conditions for employers and employees. .