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#1 Posted : 11 March 2007 08:11:00(UTC)
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Posted By p winter Good morning - we employ a number of sub contractors mostly very small organisations typically 3-4 people to carry out site installation work for us - a much larger company. Many of these chaps were originally our employees, when things were reorganised they were made redundant, set themselves up as self employed and came back on that basis to do the same work. We have provided H&S training (manual handling and other) and and provide some PPE. These boys are effectively treated as employees (for H&S)- maybe not for tax reasons. Risk assessments now indicate Health Surveillance is required for Vibration and Noise - I feel we should arrange, and pay, others in the company (with financial responsibility) do not. Your views please Pete
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#2 Posted : 11 March 2007 08:17:00(UTC)
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Posted By Ian G Hutchings Hi There may be some contractual issues here related to whether they can be considered as your employees if they mainly work for you. However if they are now running their own business as contractors to you I would expect them to assess their own risks and manage their own personnel. Especially with occupational health issues, where you may have pre-existing illnesses. You do have some responsibilities for them but in principle I would tend to side with your colleagues. I think if you decide to go into business you have to realise that you are now accountable for your people, if you do too much for them the lines of legality and accountability become blurred, as well as you taking on costs that they should cover. I'd be interested to know what others think about the legal implications. Good luck Ian
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#3 Posted : 11 March 2007 22:16:00(UTC)
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Posted By Raymond Rapp Pete Tend to agree with Ian's response. As a company you may be vicariously liable for accidents and incidents, but these people are now self-employed and as such are responsible for their own well-being. Your responsibility as the Client should only be to ensure a SSoW. Probably best to discuss the matter with your sub-contractors to ensure they fully understand the situation. Ray
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#4 Posted : 12 March 2007 07:13:00(UTC)
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Posted By Bob Youel be very carefull re tax and social security areas - as many companies have done what you are doing and have fallen to the tax/NI man- as in many cases there are deemed to be your employees irrespective
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#5 Posted : 12 March 2007 11:57:00(UTC)
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Posted By mark gough2 In my opinion it could be argued that you have sec(3)HSAW Act 1974 duties to sub contractors likely to be affected by your undertaking. I have seen succesful prosecutions of principle contractors for failure to provide a SSW. Including manual handling and Vibration issues when sub contractors have laid pavements etc. Where a sub contractor works pretty much for one company then sec (2) and (3) can be used especially as many sub contractors wear logos, sign in as and have risk assesments done in the "parent company style" (many principle contractors dont like subies of subies so this is a little way around it). Again in my opinion if it looks like a duck and quacks it is a duck. Most case law bears this out tho the HTM ruling on forseeability may alter this slightly. You also need to ensure that you have given enough resources and guidance so that the sub contractor can work safely. You can delegate duties but not responsibilities. case law and experience as shown that from an enforcement point of view the person in charge of the works (the contract holder) is always considered first then the sub contractor then the individual. To answer the question you do not have to provide health surveillance but you do need to ensure that where necessary that someone is doing it. This could be done as part of your contractor assessment process (beware data protection issues here!!.) However health surveillance in most cases is at the bottom of any controls. You must be able to show that you have reduced the risk of harm to as low as reasonably practical in addition to surveillance.
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#6 Posted : 12 March 2007 12:45:00(UTC)
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Posted By Robert K Lewis I have a feeling that these installers are going to be treated as your employees for almost all purposes, especially as it seems that your company is their primary source of work. You really need your HR people to look at this closely as there may also be a liablity for Holiday pay or even pensions. If the balance is that they are employees then the surveillance costs will fall onto your company. I know that many firms are trying to get round this with short non-renewable contracts but the Revenue and Excise people are good at spotting non-genuine, in their view, contracts for work - recognising them as essentially contracts of employment. Bob
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#7 Posted : 13 March 2007 19:56:00(UTC)
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Posted By p winter Many thanks to all who replied - I have been away from a computer for a couple of days Thanks again for the advice
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#8 Posted : 13 March 2007 20:30:00(UTC)
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Posted By Pete48 I think the only difference is whether you pay directly or via increased costs from your contractors. The duty may fall on them to make sure they have controls but you can still agree to accept costs of provision if it can be shown that is more cost effective for your company. This happens quite a lot with big/small relationships. As long as contracts are clear and the contractor has a real choice of whether to use/reject the services you provide then why not? I agree with others that your description of who they are and how these people work seems pretty clearly to suggest that would be classed as employees by the revenue. Try searching on IR35 and IR56 for some advice from the revenue.(if you feel the need that is)
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#9 Posted : 13 March 2007 21:57:00(UTC)
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Posted By p winter Thanks again to everyone who posted - my primary concern was the position of these subbies re H&S - frankly I don't care about the IR implications, sorry if I didn't make this clear
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#10 Posted : 14 March 2007 09:08:00(UTC)
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Posted By Robert K Lewis P The IR implications have a significant role in determining the MUSTS and WOULD BE GOODS of H&S provision so they cannot be dismissed out of hand. Bob
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