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#1 Posted : 06 October 2005 14:18:00(UTC)
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Posted By John C Hello all, I wondered of anyone can provide advice to a query I have with regard to something I was told by an agency who supplies staff at our sites. I questioned with a representative of the agency, what written/formal action they might take against one of their "employees" who was found to be in breach of certain safety rules and they also agreed this was the case. I was advised by the employer that the only course of action they take against "employees" is to dispense of their services or allow them to continue working with no action whatsoever. Asked how they justify this. Concerned about defending our position should we have an EL claim, the employer said they simply employ people as "self employed". Not knowing the the legalities, I find this an interesting comment as these people pay income tax and National Insurance through the employer on a PAYE basis. Do you think I am being mislead by this employer? John
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#2 Posted : 06 October 2005 14:45:00(UTC)
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Posted By john fitzgibbon No you are not being misled, this appears to be perfectly legal. I work on a site where all staff are employed via an agency, either traditional type self-employed through an "umbrella" company or so called PAYE self-employed. To illustrate the point further, most of the shop-floor were recently "paid-off". Some workers had over two years employment at the same place of work ... no redundancy payments were offered and what is more the local GMB said there was nothing they could do? This type of employment status is prevalent in the country's traditional heavy industrial areas but is spreading rapidly. In terms of H&S, while they are on your site they are your responsibility (asssuming they are supplied as competent trades people etc) If they commit a serious breach H&S I'm sure the agency will remove them from site and provide a replacement if required... Wonderful is it not (irony)
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#3 Posted : 06 October 2005 14:49:00(UTC)
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Posted By David P. Johnson To be frank, as an ex manager for a recruitment agency, I would always suggest being very wary of the legalities of using their services. If you are concerned for the actual status of the agency temps, I would suggest requiring the agency to supply a copy of the t&c of employment, and refer with this back to your own t&c of supply. It should illustrate the situation. Knowing fine well from my own experience the number of cowboy agencies in recruitment - particularly those dispensing labourer grade temps - I would clear this up as a priority, as it can be a legal minefield.
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#4 Posted : 06 October 2005 14:59:00(UTC)
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Posted By gham In terms of Liability there is a lot of case law around this area tests that can be applied are that concerning the self employed person would have the ability or authority to hire comeone themself to help the carry out the job that they are doing or to do it for them in their absence and also if their contract is for service or of service. A person in a contract of service would not normally be in a position where they can hire assistance. e.g. Lorry driver, is for service, received payment from employer for services and he hires a lorry to carry out his work which the company pay for but he has to have it painted in the company colours. He is off i'll so hires someone to drive the lorry when he is off for which he pays them. He is self employed cause he is in a position of being able to hire persons to assist him in performing his duties for his employer
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#5 Posted : 06 October 2005 15:02:00(UTC)
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Posted By john fitzgibbon I should add that the agency I referred to previously is is one of the largest agencies in the country and an offshoot of its primary oil/petrochemical services business as used worldwide by our client (a major oil company) In terms of contracts/Ts&Cs etc in the vast majority of manpower supply contracts I have encountered in previous incarnations the H&S R&R of the client assumes precadence... a situation to which any agency will gladly defer.
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#6 Posted : 06 October 2005 15:10:00(UTC)
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Posted By gham Your co. are likley to be classed as the employer in terms of liability as these employees are acting upon their instruction,
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#7 Posted : 06 October 2005 15:29:00(UTC)
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Posted By steve williamson Hi there, This throws up some interesting aspects re RIDDOR. Our agency nurses are also 'self employed' in this respect. They tend to fill odd shifts and have never even heard of the Regs. so its a heck of a job to follow up potential 'over three day' type accidents or even major injuries. As a rule we absolve them of their duty to report and where evidence exists, do it ourselves. Cheers, Stevew
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#8 Posted : 07 October 2005 14:48:00(UTC)
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Posted By Eric Burt In Royal National Lifeboat Institution v Bushaway [2005] IRLR 674, the EAT held that an agency worker was an employee of the host organisation, notwithstanding the existence of an 'entire agreement clause' in her contract that described her as a self-employed worker. This supports previous case law which confirms that agency workers should be regarded as employees of the host organisation, especially if they have been with the organisation over 12 months, or if they are "badged" as such e.g. they wear the uniform of the host organisation. I recently wrote to HSE suggesting they consider Regulations to clarify the status of agency workers for health and safety purposes along the same lines as The Health and Safety (Training for Employment) Regulations 1990 (which clarified the status of work experience pupils / YTS trainess etc) but they informed me that they have no plans to do so. This is despite the UK failing to implement an EC Directive on this issue. This is an area of health and safety that is increasingly of concern, especially when you read the tragic story of Simon Jones who was employed at Shoreham Docks (do a Google search on this one). I know that HSE staff read this forum so I would be interested in their comments..................... Regards, Eric
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