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Contents

Official guidance
Employment Status Manual

ESM2000 · Agency and temporary workers

  • ESM2001 · The agency legislation
  • ESM2030 · Agency legislation - provisions from 6 April 2014: introduction
  • ESM2031 · Agency legislation - provisions from 6 April 2014: the legislation
  • ESM2032 · Agency legislation - provisions from 6 April 2014: when the agency legislation does not apply
  • ESM2033 · Agency legislation - provisions from 6 April 2014: agency workers - agencies
  • ESM2034 · Agency legislation - provisions from 6 April 2014: conditions that must be met for the agency legislation to apply
  • ESM2035 · Agency legislation - provisions from 6 April 2014: personal services
  • ESM2036 · Agency legislation - provisions from 6 April 2014: the contract
  • ESM2036a · Agency legislation - provisions from 6 April 2014: personally providing service and contracts- examples
  • ESM2037 · Agency legislation - provisions from 6 April 2014: supervision, direction or control (as to the manner in which the worker provides the services)
  • ESM2038 · Agency legislation - provisions from 6 April 2014: remuneration
  • ESM2039 · Agency legislation - provisions from 6 April 2014: the employer for tax purposes
  • ESM2040 · Agency legislation - provisions from 6 April 2014: the secondary contributor for NICs (6 April 2014 onwards)
  • ESM2041 · Agency legislation - provisions from 6 April 2014: targeted anti avoidance rule (TAAR)
  • ESM2042 · Agency legislation - provisions from 6 April 2014: record-keeping and returns
  • ESM2043 · Agency legislation - provisions from 6 April 2014: penalties
  • ESM2044 · Agency legislation - provisions from 6 April 2014: fraudulent documents
  • ESM2045 · Agency legislation - provisions from 6 April 2014: transfer of PAYE and secondary employers NIC liabilities
  • ESM2046 · Agency legislation - provisions from 6 April 2014: directors’ liability for paying PAYE debt
  • ESM2047 · Agency legislation - provisions from 6 April 2014: appeals
  • ESM2048 · Agency legislation - provisions from 6 April 2014: professional workers
  • ESM2049 · Agency legislation - provisions from 6 April 2014: more than one agency
  • ESM2050 · Agency legislation - provisions from 6 April 2014: partners, unincorporated bodies and their members
  • ESM2051 · Agency legislation - provisions from 6 April 2014: service companies (including PSCs)
  • ESM2052 · Agency legislation - provisions from 6 April 2014: agency workers - expenses
  • ESM2053 · Agency legislation - provisions from 6 April 2014: oil and gas sector
  • ESM2054 · Agency legislation - provisions from 6 April 2014: oil and gas sector - certification scheme
  • ESM2055 · Agency legislation - provisions from 6 April 2014: agency legislation - an explanation of “supervision, direction or control as to the manner in which the services are provided”
  • ESM2055A · Agency legislation - provisions from 6 April 2014: how to form a view of whether Supervision, Direction or Control is present or not
  • ESM2056 · Agency legislation - provisions from 6 April 2014: agency legislation - table of examples to demonstrate if the worker is subject to (or to a right of) supervision, direction or control
  • ESM2057 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - IT consultant
  • ESM2058 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - professional chef
  • ESM2059 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - HGV driver
  • ESM2060 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - joiner / carpenter
  • ESM2061 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - supermarket delivery driver
  • ESM2062 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - security officer
  • ESM2064 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - domestic helper
  • ESM2066 · Agency legislation - provisions from 6 April 2014: supervision, direction or control example - operative at recycling plant
  • ESM2070 · Employment Intermediary Reporting: contents
  • ESM2300 · Continuous contract of employment or individual contract
  • ESM2310 · Individual engagements
  • ESM2320 · Overarching contracts of employment - background
  • ESM2330 · Overarching contracts of employment - legal position
  • ESM2340 · Overarching contracts of employment - the contract
  • ESM2350 · Overarching contracts of employment - guaranteed minimum hours
  • ESM2360 · Overarching contracts of employment - zero hours contract
  • ESM2370 · Overarching contracts of employment - providing an opinion on the contract
  • ESM2380 · Overarching contracts of employment - miscellaneous contractual issues
  • ESM2390 · Umbrella companies
  • ESM2029 · Agency legislation - provisions from 6 April 2014
  1. Agency and temporary workers: contents
  2. Agency and temporary workers: agency legislation - provisions from 6 April 2014: supervision, direction or control example - operative at recycling plant

ESM2066 | Agency and temporary workers: agency legislation - provisions from 6 April 2014: supervision, direction or control example - operative at recycling plant

From HM Revenue & Customs · Employment Status Manual

Part 2, Chapter 7 Income Tax (Earnings and Pensions) Act 2003, Part 2, Chapter 7, section 44(2)(a)

Social Security (Categorisation of Earners) Regulations 1978, Schedule 1, Part 1, paragraph 2

Operative at a recycling plant

Lukasz has experience in working on production lines at various factories and has registered with an employment business which brings him regular work. The employment business contact Lukasz to tell him a recycling plant has provided them with details of an eight-month engagement for an operative to work at the recycling plant, which will entail sorting out household recyclables being delivered on site. Lukasz is keen to take the job and is provided with the contact details for Martin, (the plant’s production manager), whom Lukasz phones. They discuss the vacancy and agree that Lukasz will take the engagement. Martin tells Lukasz to report to him at 9am the following Monday.

Lukasz turns up for work as arranged and meets Martin. Martin tells Lukasz he will be working alongside a moving conveyer belt where he will be picking out recyclables off of the belt and placing them into corresponding chutes based on their type, for example placing glass items into the chute for glass. Lukasz is given protective clothing, eyewear, and gloves, after which Martin gives Lukasz a Health and Safety briefing. He then demonstrates to Lukasz how the conveyor belt work should be undertaken and what the expected speed of his work is. Lukasz is then told to take his place alongside the conveyor belt. For the first four weeks, Martin periodically checks on his progress making sure Lukasz is working to speed and is always placing items into the correct chutes.

From the fifth week, Martin no longer feels the need to make sure Lukasz is putting the recyclables in the correct chutes, nor does he feel he needs to monitor the time it is taking Lukasz to progress through his work. Lukasz is now skilled enough to complete the work quickly and without mistakes without anyone’s intervention. Lukasz is therefore left to complete the rest of his engagement without supervision.

At the start of Lukasz’s engagement, Martin made clear how Lukasz should complete his work. Lukasz could not decide how he would do the work himself as it had to be done in a particular way as dictated and demonstrated by Martin. This was frequently checked by Martin in the first four weeks.

Although Martin only subjected Lukasz to supervision for the first four weeks of his engagement, by having overall responsibility for all work done on site Martin still held the ‘right’ to supervise, direct, or control the manner in which Lukasz provided his services throughout his entire engagement. This condition of the agency legislation is therefore met and will have applied to the entire duration of Lukasz’s engagement.

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