Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Agency Work

sarvasarva New MemberRegistered Posts: 13
My client like to act as an agency & need to operate PAYE for workers.Third party(employer) will pay direct to agent.I need to know about the contract of employment between agent and worker and other responsiblities related to the agent.Please help me!

Sarva

Comments

  • payrollpropayrollpro Trusted Regular Hampshire/SurreyRegistered, Working Together with HMRC Posts: 418
    There is no employment contract between the agent and the worker as the employment rights act 1996 does not apply. There is an agency agreement which is different. You must never refer to the end user as employer because they are not. The worker is not an employee at any time.

    The agent must carry out certain functions as though they were an employer but this does not create an employer/employee relationship.

    Your client must comply with the agency workers regulations and carry the requisit licencing and insurances and the agreement with the end user must contain clauses which bind the end user to honouring the workers rights, to health and saftey, protection from dicrimination etc, as well as honour their right to equality of payment etc under the new regs.

    Your client should run a completely separate payroll to their own true employees otherwise the edges between the employees of the agency and the agency workers will become blurred and could mean significant problems long term.

    Other than that, from your point of view the operation is the same, each worker is paid wages which are subject to the normal PAYE deductions. They are entitled to paid annual holiday of 5.6 weeks which must be paid to them when they take any holiday (any other method of paying holiday pay is unlawful) and they must have a P14 filed and have a P60.

    The only other requirement which is different to employees is that if the worker has not been paid for 3 full tax months you are obliged to issue a P45 immediately.

    Payrollpro
Sign In or Register to comment.