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#1 Posted : 18 September 2007 21:02:00(UTC)
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Posted By Ian Bruce
Here's something that has got me scratching my head:

A small business, with approximately 100 share holders, employees a single employee who's activities are controlled by a "Board of Directors" elected by the shareholders.

As there is only one employee, technically they do not need to record their H&S policy or risk assessments, although I have advised them they should - best practice etc.

Question posed to me is, are the Directors employees?

If the answer is yes then they have more than five employees and recording policy and assessments etc is more than a technicality, it's a must!

In truth.... I'm not sure! What's the opinion of others out there with more legal understanding than me!
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#2 Posted : 18 September 2007 23:38:00(UTC)
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Posted By Ron Hunter
I'd be frantically undertaking risk assessments, developing safe sytems of work,training, PPE assessments of need, monitoring, auditing, reviewing etc etc, because a lot of people are really going to lose out if that single employee (?!!!) comes a cropper! ;-)
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#3 Posted : 19 September 2007 09:38:00(UTC)
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Posted By Thomas Kennedy
Remember that even if they only employ one director for 2 hours a week they are an employer.

And of course as an employer they have a responsibility to ensure the safety of others be they paid, unpaid volunteers, visitors or whatever.

Hope this view help.

Thomas
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#4 Posted : 19 September 2007 09:45:00(UTC)
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Posted By Garry Homer
Directors are employees of the company regardless of if they actually get paid for performing that duty.

I'm a Director with a payroll/employee number for tax purposes, so I think that is a good enough example of my employment by my company.

The Inland Revenue are reasonably clear on this. Their website has definitions of paid and unpaid employment that might help you convince your client.

Garry
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#5 Posted : 19 September 2007 09:57:00(UTC)
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Posted By Ian Bruce
Thanks folks. I guess you've confirmed what I already suspected!

My advice to the client will be to record everything - policy, risk assessment, safe systems of work etc etc and really do some work on lone worker situations!

Thanks again - this forum is worth every penny of the subscription in my mind!
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#6 Posted : 19 September 2007 21:44:00(UTC)
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Posted By crispin aspinall
Ian
Being a director does not, of itself, make that person an employee of the company. A directorship is an office, not necessarily an employment. If, however, the company enters into a service contract with the director, the terms of which make the director an employee, then the director becomes an employee.

You therefore need to probe further into the circumstances of this particular case. However based on the information which you have provided, my guess would be that there is only one employee and the company can if it wishes, dispense with many of the record keeping requirements of h+s legislation.
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