Agency worker / Employee??

Can any company effectively act as agent or should we be employing them directly on our payroll?

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I was looking to recruit a temp using an agency in August for approx six months on a week by week renewal basis to fill a temporary Finance Administrator post.

One of our directors knew of a person through a Innovation centre company he has some financial and managerial involvement with. This person is suitable for the role and so I have offered them the job. However now our director has suggested that the company he is involved with acts as agent as the Finance Administrator is already on their payroll, and it saves us having to go through the auto-enrolment rigmarole when they are already employed etc.

The Finance Administrator would definitely be an employee of my company as I have run it through HMRC's employment status indicator. We have control over the hours and work they would be required to do and they cannot supply a substitute unless my company agrees. I fail to see any difference between the Innovation centre company employing the Finance Administrator and then charging on to us, to that of a recruitment agency doing the same thing. Which is what I would of done if she had not been recommended.

I can't help but feel I am missing something? Can they employ her and then recharge us or are we going to get caught by legislation somewhere that says she should be on our payroll instead.

The Innovation centre would be paying her through PAYE and meeting all holiday and pension requirements still so everything should be fine otherwise. 

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By Ranse
16th Jul 2018 21:20

Yes ! the innovation centre will be seconding the employee to your company , your contract will be between the two companies....you have to agree the terms of secondment, one thing that must be clear is that the employee will be returning to their original job.....you can research the law on secondment. the employment test you have describe do not apply.

- at your year end , you may wish to disclose related party transaction

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