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Changing from employed to self-employed. What duty is owed?
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Posted By Chris Costall My company is construction based, supplying and installing windows and doors into the new build sector.
All our installation teams are employed at present, the board or directors are looking at making them all self employed.
What H&S duty of care will my company owe these self employed individuals if this goes ahead?
I have looked into this and from what I can gather it comes down to if a contract of employment is present:
. Degree of control over the individuals (When, where & how to complete the task), we will be telling them where, when & what plots to install on site. . Do they provide their own equipment? We will provide them will all their current equipment and a tool allowance. . Provision of PPE? Provide them with a full set once per year. . The individual sign to confirm that they will comply with the companies pre written RA/ MS. . Supervise to ensure compliance with RA/ MS.
Has any one had to make this transition within your own organisation or does any one have any advice?
Thanks
Chris
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Posted By Chris Packham I may be wrong, but it was my impression that unless they work for a number of different organisations, your employees will be considered - at least by the Inland Revenue - to still be employed. We went into this when we first set ourselves up as a consultancy and had a significant part of our work with just one client. It was only that we could demonstrate that we did have other work and that we had a marketing plan to develop other clients that IR accepted we were actually self-employed.
How this would impact on the "employer"'s duties under health and safety legislation is something where you might wish to seek proper legal advice.
Chris
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Posted By CFT Have you had professional advice on this as the Revenue may consider the change from directly employed to s/e unacceptable, depending on what percentage of time they are to devote to your company.
I recall a client being heavily fined many years ago.
CFT
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Posted By CFT Sorry Chris, writing while you posted.,
Charley
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Posted By Steve Cartwright With regards to your duty of care towards H&S. It will be exactly the same.
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Posted By Chris Costall I my self have not had any advice from IR but I was a where that if they only worked for one company they will consider for tax reasons as employed.
The IR as worrying as it is, is not my primary concern, the duty that we will owe them if they are self-employed is.
Thanks for your comments/ advice.
Regards
Chris
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Posted By Sally The IR definition of employee and the HSE definition of employee don't always match. From what you describe the HSE will consider them your employees as you direct and control their work.
Check out the HSE website for further information
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Posted By Chris Packham Chris
Firstly, my point was that if they are considered legally as "employed" for tax purposes, where would this place them for health and safety? Would a court consider them as self-employed or as employed? This could have a bearing on the situation. I could not even attempt to provide an answer to this, but suggest that it might be something to check out with a legal specialist.
Having said this, the Health and Safety at Work etc. Act does refer to others, not just those employed, so I would agree with another poster that your duties and responsibities would remain the same as before.
Chris
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Posted By ddraigice HSE will look at similar issues to IR. It's very complicated as some answers to the questions below will be yes, others no.
Do they provide their own transport or are there company vans? Are they expected to wear the company logo on their work clothes? Who provides tools? Who supplies the materials to carry out the job?
A true test of self employed status is whether or not they have control over the work themselves and can turn up whenever they want or give the job to another sub-contractor.
So more importantly: Do the "self employed" have a choice of when and where to work or are they told? Can they sub-contract the job out to someone else?
If no to these then they'd more likely to be classed as employees.
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Posted By Bob Youel
Dont forget the needs of the Social Security areas re self emloyed as on many occasions a self employed person is not deemed to be self employed if certain parameters are not met and the person who is deemed to be the employer get a big bill
Yes the duties re self employed re H&S are basicially the same
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Changing from employed to self-employed. What duty is owed?
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