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#1 Posted : 08 January 2007 08:48:00(UTC)
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Posted By Homer
Being a bit of a sad old man I was thinking about H&S over the festive period in relation to labour only contracts. Parking the issue of tax and NI payments who has ultimate H&S responsibility for them, they are in theory self employed.

We as a company can clearly demonstrate that they are not in continual employment so where does or legal position stand. Should the labour only person provide his own H&S paperwork for approval, i.e risk assessments.

Would welcome any thoughts.

These labour only people seem to command a much higher rate of pay than those on the books directly and I have been advised often dodge the VAT man and NI payments, have cake and eat it springs to mind?
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#2 Posted : 08 January 2007 11:35:00(UTC)
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Posted By Bob Youel

The 'controller' is always responsible so you need to confirm the situation as if people are really self employed then the amount of control is different to PAYE

As for NI & Tax: Many a very large organisation has come a cropper re the tax/N-insurance liabilities re this area - I advise that you take real competent advice as it can cost you lots of £

The 'controller' element will come in here as well
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#3 Posted : 08 January 2007 13:37:00(UTC)
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Posted By Safetynut
The Employer who pays their wages.

Contractors and sub-contractors working under the control and direction of the company may be treated as self employed for the purposes of tax and national insurance but they will nevertheless be treated as employees for health and safety purposes and the company must take appropriate action to protect them.

The Employers Common Law duty of Care obviously extends to Contractors/self employed who may be affected by his acts or omissions.

Under Section 2(2)c of the Health and Safety at Work Act 1974, employers have a general duty to provide such information, instruction, training and supervision as is necessary to ensure the health and safety at work of their employees. Section 3 of the Act requires the employer to ensure that his undertaking is conducted in such a way as to ensure that non-employees are not exposed to risks to their health and safety.

Where an employer, “A” contracts out part of the work required to be done to a third part, “B”, and “B’s” employees are called upon to work jointly with “A’s” employees, as may be done on a construction site for example, then one of the questions which might arise is that of responsibility for the provision of information, instruction and training of the two groups of employees.

To some extent the judgement in the case of Regina v Swan Hunter Ship Builders Ltd in November 1979 has answered this question.

i hope this helps

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#4 Posted : 08 January 2007 13:44:00(UTC)
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Posted By Phil Grace
Homer,
Forget the tax/NI issues....

Who controls the work? Who determines the method of work? Who supplies tools and equipment? If you can answer yes to one or more of these then you are likely to be regarded as the employer.....
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