Step 5

How to comply – what it looks like in practice

STEP 5 - Conduct ongoing Due Diligence

Labour Users should conduct regular audits - at least every 6 monthly is recommended - in partnership with their Labour Provider. These should include document checks and confidential worker feedback.

Effective auditing will have the benefit of:

• Improving the legal, ethical and quality standards of agency labour supply

• Reducing the risk of media exposé of agency worker exploitation

• Improving partnership between labour user and provider

• Enhancing the likelihood of success during ethical and GLA audits

To assist in this auditing process the GLA has produced in collaboration with the food supply chain a Good Practice Guide for labour users which contains at Annex A “What to check during audit of a labour provider”. The ALP has produced an “Agency Labour Best Practice & Audit Tool” based on the GLA Licensing Standards to facilitate the auditing of labour providers.

Matters that should be looked at during due diligence audits include:

1. Payment of tax and national insurance That the Labour Provider has deducted appropriate income tax and NI from workers’ pay and has paid employer’s and employees’ NI contributions, PAYE and VAT to HMRC.

2. That workers receive their legal rights

• All workers are paid correctly, at least the minimum wage (remember this is higher for agricultural work) and issued with correct payslips, allowable deductions are legitimate and reasonable.

• All workers have been issued with written contracts detailing their entitlement to Statutory Sick Pay and paid holiday.

• All workers are allowed to book and take statutory paid holiday.

• Workers and working hours are recorded, can be linked accurately to pay and do not breach working time regulations.

3. That workers are legally entitled to work in the UK Labour Providers have robust processes in place to prevent illegal working (see section on Right to Work) and have carried out checks and kept photocopies of appropriate original ID documents.

4. That workers of appropriate age That workers ages are checked and recorded and comply with appropriate age verification processes in place for the protection of young workers (see section on Children and Young Workers – How to Comply).

5. Health and Safety

Even though temporary agency staff do not work directly for the Labour User, the Labour User is still responsible for the health and safety of agency workers working under their supervision and direction. In fact, agency workers are likely to be at greater risk because they are often unfamiliar with the environment or nature of work.

Business Link provides useful information on managing agency workers' health and safety. Click for more information.

Due diligence audits with Labour Providers should examine:

• That a current agreement exists between the Labour Provider and Labour User on arrangements for managing health and safety of agency workers

• That risks to agency workers have been assessed and adequate controls are in place

• Arrangements for provision of PPE; first aid and action in event of accident

• Agency workers have received both general induction and job specific health and safety training before they start work

• There are training records to demonstrate that workers have been trained

• Workers can accurately tell you what the risks of their work are and what to do if there is a fire or if someone has an accident

• That arrangements for the day to day management control of agency workers are in place

• That systems are in place to review and improve the management of health and safety at work of agency workers.

Now take the next step through: Agency Labour.

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