Understanding complex intermediary arrangements.

PAYE employment relationshipsA question: How many ‘contingent’ workers who are employed through a complex set of intermediaries understand the arrangements that they are working through?

 

Just to help myself understand this, and to kick start a conversation about it a while ago, I produced this diagram to illustrate the PAYE relationship that most employees work under.

By ‘intermediaries’, I mean umbrella companies, payroll providers, various contractual and timesheet tools, introductory agents, employment agents, etc.

Many such workers don’t understand what payments they are making, how their ‘deal’ is altered by such arrangements. I periodically speak to members who don’t understand who is paying the tax, the NICs, Apprenticeship Levy, Pension Contributions, etc.

My question is about how carefully engagers and the intermediary partners that they work with explain the situation? Is there a case for the kind of funded accounting advice that is generally provided in Settlement Agreements (in that case, legal advice) – funded by the end-engager?

When we take out a new insurance policy, the providers are obliged to offer a ‘key facts’ documents. How far are the purveyors of complex employment arrangements obliged to explain them well?

If you want a close-up of my experiment, it’s here:

PAYE employment relationships

 

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