Are Contract and Temporary Employers Good for Business

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 Welcome to Rullion‟s

 Health, Safety and
Employment Open Day

21st September 2006

Presentation Team:

• Martin Garratt
  – Managing Director – Rullion Personnel
• Alison Eastham
  – Group Health Safety and Environmental Manager
• Howard Marshall
  – Group Human Resources Manager

Introduction to Rullion

• Rullion Group
  – Alltrades
  – Computer
  – Engineering
  – Personnel
  – Solutions
  – Management Services


• To demonstrate the impact good Health Safety &
  Employment Management has on both our business &
• To expand your understanding of the legislation that
  governs the recruitment industry
• To help you improve your recruitment supply chain
  management through better understanding of the
  standards expected of our industry.
• To describe how Rullion can work in partnership with

Comment from the Chairman:

“As Rullion Group Chairman, I take ultimate responsibility for
 promoting & actively practicing Rullion‟s philosophy relating
 to Health, Safety & Welfare, & to ensuring that Workers are
 placed with Clients ethically & effectively”.

 Themis Saoulli

• H&S and Temporary Workers
   – Legislation and terminology
   – Responsibilities
   – How Rullion can help
• Break
• Managing Temporary Workers
  – Contractual considerations when using temporary workers
  – How to mitigate risks
  – What Rullion can do to help
• Legal Update
   – H&S and employment law

• Lunch and Advice Clinic

Health and Safety

             Alison Eastham
         Group Safety Health and
         Environmental Manager

HSE Statistics 2005/6

35 million working days lost   35 million days
due to work related ill
health and injury              =

Equates to 1.5 days per        28 million due to work
worker                         related ill health

Average salary cost per        7 million due to workplace
head to UK business is         injury
£132 PA


• H&S At Work Act
   – Sections 2 and 3
• Management of H&S At Work Regs
   – Reg. 11 – Co-operation and Co-ordination
   – Reg. 12 – Persons Working in host employers or self employed
              persons‟ undertakings
   – Reg. 15 – Temp Workers
• Employment Agencies Act 1974
• Employment Agencies and Employment Businesses
  Conduct Regulations

• Agency Workers Guidance (HSE/DTI)


• Work Seeker – Employment Agencies Conduct Regs
    A “work seeker” is a person to whom an agency or employment
    business provides, or holds themselves out as being capable of
    providing, work-finding services. (Temporary worker/contractors)
• Employment Business
    An organisation which supplies persons to act for, and under the
    control of, other persons (the hirer) in any capacity. (Temporary or
    contract recruitment)
• Employment Agency
    An organisation introducing jobseekers to potential permanent
    employers. (Permanent recruitment)

 Rullion is both an:

Employment Business
       and an
 Employment Agency

Contractual terminology

• Employment Contract
    Worker is a direct employee of the company issuing the contract
• Contract of Service (Employment Contract)
    Worker is an employee of the company issuing the contract but
    the terms of their employment are that they work under the
    supervision, direction and control of a 3rd party
• Contract for Services
    The worker has a self-employed status and is neither employed by
    the hirer nor the employment business.
• Terms of Business
      Business to Business contract used for Ltd. Co. workers.
      • Expresses terms of trading only.
      • Workers – self employed or employees of Ltd. Co.

Temporary workers placed through
Rullion operate under:

           A Contract for Services
             Terms of Business

              and therefore have

          Self-employed status (PAYE)
Or, are employed by the Ltd Co that pays them.

Relationship & Communication Triangle



Employment                   Work Seeker:
Business                     Ltd Co/PAYE

H&S Responsibility

• Due to Reg. 11 (Co-operation and Co-ordination) and the
  „Relationship/Communication Triangle,‟ the REC States:

    „The practical effect of Health and Safety
     legislation is a joint responsibility for the
      Health and Safety of temporary workers
    between the employment business and the
             client organisation (hirer)‟

 Supported by HSE and DTI in agency workers guidelines

H&S Responsibilities

• Important to have clarity

• Employment Business:
   – All pre-assignment checks
   – All ongoing liaison and communication
   – Any required support service as required
• Client
   – All on assignment activities – supervision/direction/control
• Temp worker
   – As employee but including communication with employment
     business and client and PPE provision where applicable

H&S Information required from
Temporary Workers

•   Health/disability information
•   Career history
•   Qualifications/certifications
•   Skills cards/H&S passport schemes   (Where applicable)

•   Working Time Regulations (PAYE)
•   Age – Young Workers
•   References

         Ensure workers are fit and suitable

H&S Information required from Client

•   Site Address
•   Name of Manager
•   Job title
•   Job description – role requirements
•   Start time
•   Any specific qualifications/skills or qualities
•   Any H&S risks, and controls to manage them
•   Personal Protective Equipment required

   Two way
communication is

How Can Rullion Help:

•   Workers H&S Guidance Handbook
•   Training for all Rullion staff re. H&S requirements
•   Client and/or worker presentations/training
•   Internet
•   Industry body affiliations – CITB (CSCS)/JIB etc.
•   Newsletters


•   Accident investigation reports/RIDDOR reports
•   Client visits
•   Client days
•   SHE Manager
•   Dedicated Service – partnership with Clients
•   Bond

Case Study        -    United Utilities

•   Drivers
•   Liaison meetings
•   Newsletter
•   Training
•   Joint working party – UU and Rullion
•   Rullion actively monitoring licence compliance.
•   Rullion undertaking annual training recap
•   Joint training planned

Case Study – United Utilities

• Client comment:

Regular meetings have improved working together. There
   1. Better understanding of needs from both UUOS and Rullion
   2. Higher profile of H&S issues relating to tanker drivers
   3. Improved knowledge of the transport industry i.e. tachographs
      and VOSA
   4. We would now like to see Rullion strengthen their service to us to
      provide a higher number of stand-by drivers.


Howard Marshall

Group HR Manager

Managing Temporary Workers

• The contract for service

• The Employment Tribunal Service view on
  temporary workers

• Recent cases involving Temporary Workers

• How can Rullion help

Employment tribunal service statistics 2005 /

• Increase in claims from 86,000 to 115,000
• Types of claims
   – Increase in multiple claims
     • Primarily claims about equal pay
  – Largest number of claims were for unfair dismissal
  – Highest growth in claims were working time related
  – Compensation levels remained static for all cases
     • Highest award = £985,000
     • Average award (all claims) = £5,000

The tribunals view on contract /
temporary workers

• There have been numerous cases surrounding the
  employment status of temporary workers

• The tribunals are looking to determine an employee
  relationship within the “triangular arrangement”

• A number of recent cases have been used to test the
  possibility of an employee relationship

Recent cases

• Brook Street v Dacas (2004)
• Key points
  – Client – Wandsworth Borough Council
  – Greater than 12 months “service” with Brook Street
  – Continuous with one client
  – Assignment termination due to a dispute between
    Dacas and the Council
• Decision
  – Worker could be employee of end user due to implied
    contract of employment

Recent cases

• Bunce v SkyBlue (2005)
• Key Points
  – Mutuality of obligation raised due to successive
    number of short term contracts via Sky Blue
  – Control was delegated to the client by Sky Blue
• Decision
  – Contract for service was clear and unequivocal
  – Mr Bunce was not an employee of Sky Blue

Recent cases

• RNLI v Bushaway (2005)
• Key points
  – Mrs Bushaway placed on a temp contract
  – Offered a full time post
  – Left after 7 months in post due to dispute
• Decision
  – As there was no break in service between temp/perm
    role and the job she undertook as a temp was the
    same as her contract of employment indicated
  – Combined temp/perm service equated to more than 12
    months and tribunal therefore found in her favour

Recent cases

• Muscat v Cable and Wireless (2005)
• Key points
  – Dacas case not fully tested
  – Continuous service with one client
  – TUPE transfer in 2001
  – No change to role
• Decision
  – He was an employee of C&W
  – There existed an implied contract of employment
  – The conduct of the parties was considered key


• Tribunals are attempting to find an implied
  contract of employment
• These cases have all centred around the
  implied contract of employment being between
  the client and the worker
• Stresses the importance of robust contract
• Stresses the importance of continual review of
  such terms
• Each case will rely on its individual merits

Recent cases

• Ncube & others v 24/7 Support Services Ltd
• Key points
   – Bank nurses claimed they were employees of 24/7
   – 24/7 delivered compulsory training
   – 24/7 appraised the bank nurses
   – 24/7 subjected workers to disciplinary procedures
• Decision
   – The tribunal found for the bank nurses

What can rullion offer to ensure we all
stay out of tribunals?

We ensure;
• that our terms and conditions cover all
  eventualities relating to cessation of an
  assignment, taking into account recent case
• that supplied workers understand their
  relationship with ourselves and the client
• that we manage all contractual arrangements

What can rullion offer to ensure we all
stay out of tribunals? Cont‟d

We ensure;
•   that we communicate agreed rate increases
•   that negotiations are managed through us
•   that we manage all assignment terminations
•   that wherever we can, we identify any
    problems that may create an employee

How do we do this?

• Through the provision of training to our
  recruitment consultants
• Through the development of relationships with
  our clients
• By taking the time to discuss the clients
  requirement with our candidates
• Through constant communication

What else can we do?

• We can offer training / presentations on “how
  to manage temporary workers” to your
  supervisors / managers to include;
   – how not to create an employment contract
   – training, only as required to carry out the job
   – no additional payments outside the contract
   – no disciplinary action
   – no performance reviews

What else can we do?

• We offer our assistance to resolve workplace
• Contractual review assistance
• Support / helpline advisory service

What else can we do?

    Tell us -

       Your feedback is important

Legal Update

Health & Safety Legislation/Consultation

• HSC/E Draft Simplification Plan

• Proposals for revised Asbestos Regs & ACOP

• Construction (Design & Management) Regs

• Fire Reform Order

HSC/E Draft Simplification Plan

• Aim
   – Simplify legislation
   – Reduce admin burden
   – Consider alternative enforcement methods
• Consultation for initial plan completed Jan 06
• Key themes:
   – Forms review – Merger with other regulators – Sensible risk
     management – Explore alternatives to regulation – Guidance –
     Penalties – Legislative and enforcement incentives.

  Currently with Cabinet Office Better Regs. Officials for
  their view

Revised Asbestos Regs. And ACOP
• Aim is to consolidate 3 sets of legislation
   – Control of Asbestos At Work Regs 2002
   – Asbestos (Licensing) Regs 1983 (amended)
   – Asbestos (Prohibitions) Regs 1992 (amended)
• Changes Inc:
   – Redefining the word Asbestos
   – Replacing the use of action levels
   – Introducing a new Control Limit 0.1 f/cm3 & removing short-term
     exposure limits
   – Amendments to the fibre counting methods used
   – Expanding the list of training requirements
   – Changes to the licence and clearance certificate requirements
• HSC approved on 25th July – Nov or Dec 2006?

CDM Regulations

• Deferred until April 2007
• Guidance anticipated for Jan 07
• Main Aims:
  – Consolidate existing legislation
  – Changes to client duties
  – Empowered Coordinator
  – Designer Duties
  – Demolition
• No Change to definition for notifiable projects

Fire Reform Order

• Effective from 1st Oct 2006
• Replaces existing fire legislation
• Fire certificates void
• Fire Risk Assessment
   – Duty to undertake
   – Employees
   – Non employees
• Duty holder = responsible person
• Additional specific requirements for a range of
  other issues.

Employment Legislation – Age

Age Discrimination


  Age discrimination can be explained as occurring when
  someone treats a person less favourably because of
  that person’s age, and uses this as a basis for prejudice
  against and unfair treatment of that person

Employment Equality (Age) Regulations 2006

• Regulations to be implemented on 1st October 2006

• Age discrimination laws must be in place in all member
  states by 2nd December 2006

• Age Discrimination Guidelines available on Rullion
  Internet – Law and Policy section

Age Discrimination

The regulations will:
•   outlaw mandatory retirement ages below age 65 (except
    where they can be objectively justified)
•   give those over 65 the right to request to continue working
•   be reviewed in 2011 to consider whether it is still necessary to
    maintain mandatory retirement ages at all
•   ban unjustified age discrimination in employment terms such
    as, recruitment, promotion and vocational training
•   remove the upper age limit currently in use for unfair dismissal
    and redundancy rights
•   provide at least six months‟ written notice to employees in
    advance of their intended retirement date to enable them to
    plan effectively for retirement.

Age Discrimination - Recruitment

• Age-related criteria or age ranges should not be used in
  advertisements other than to encourage applications
  from age groups which do not usually apply

• Adverts should avoid phrases such as „5 years
  experience‟, „minimum 3 years in similar role‟ as this
  may be discriminatory against younger workers

• Alternatives such as „competent in the area of,‟ „proven
  experience in the area of‟‟ should be used.

Age Discrimination - Recruitment

• Specific requirements for a degree may be indirectly
  discriminatory against older people
• Age criteria must not be taken into account in
  employment decisions but can be used for monitoring
• Any reference to age should be removed from employee
  or candidates CV‟s prior to submission to the recruiting
• Person specifications need to be updated to focus on
  competencies. Interviews should focus on skills,
  knowledge, behaviour and experience as opposed to
  qualifications, except where specific role necessary
  qualifications are required.

Age Discrimination


  Pay and terms of employment should not be based on
  age-related criteria

Age Discrimination

Training & Development:
• All employees should be eligible for T&D
  programmes and have the same T&D
• All courses available to everyone so long as
  there is a business need for them to attend
• Promotions must be awarded based on
  capability, success and achievement

Age Discrimination - Benefits

 Benefits such as private health insurance are generally
 more expensive for older workers. Increased expense
 however will be no excuse for employers to exclude
 older workers from a scheme if the employee is entitled
 to it.

Age Discrimination - Recruitment


   Our client is looking for experienced barman to join a young, vibrant and
   outgoing team.

   A good knowledge of wines and cocktails is an absolute must. A varied
   knowledge of different spirits would be extremely beneficial as well.

   Applicants should be well presented and have a good grasp of the English
   language. The hours are long but the rewards are handsome. A competitive
   salary will be combined with a share of the tips and a quarterly bonus
   dependent upon performance. Training will be given where necessary and an
   ongoing development program will ensure your skills remain up to date.

   Apply now for an immediate interview.

Age Discrimination - Recruitment


   Key phrase – “barman to join a young, vibrant and outgoing team”

   Directly discriminatory on the basis of gender. The term “barman” should be
   replaced with something non gender specific such as “bartender” or

   Use of the word “young” is, in this case, indirectly discriminatory on the basis
   of age.


 Health, Safety and
Employment Open Day

21st September 2006


Description: Are Contract and Temporary Employers Good for Business document sample