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Posted By Bill Elliott
Having just had the dubious honour of addressing the Board of Directors, the question of "status" of Non Execs. arose. The argument was that they were appointees NOT employees. My gut reaction was to tell them that in terms of HASAW they were classed as employees, any feelings on this?
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Posted By Robert M Edwards
The legal distinctions are complex and under current consultation with the DTI. The board would argue against them being employees as there are ramifications for PLCs who treat them as such. The NEDs have an independant function on the board which will be outlined in an agreement in compliance with the Companies Act.
However your best bet is to consider them in the same way as independant contractors or other 'workers'. Sometimes the term 'employee' causes much debate and we are seeking here to look at matters from the HASAWA. The legal tests for these NEDs so far indicate that as far as H&S goes you need to regard them as employees/workers under the Act.
Lime One Ltd
0870 240 4325
www.limeone.com
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Posted By Alan Spiers
I agree with Robert but add that in some circumstances could not a NED be regarded as a consultant, giving advice which the company act upon.The questions then would be around wisdom of the board accepting advice,checking competence etc.
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Posted By Paul Leadbetter
Bill
Presumably, these non-execs have contracts with your organisation. In which case, their status would depend on whether they have contracts of service or contracts for service. I have to admit that I cannot explain the difference but your HR people should be able to.
Paul Leadbetter
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