15th June 2016
You may feel you want to know your sub-contractors a little better following the implementation of the Posted Workers (Enforcement of Employment Rights) Regulations 2016 on 18 June 2016 because you will be jointly liable if they fail to pay the national minimum wage to any workers posted to the UK from another member state.
Under the Regulations you will have a defence if you can show that you exercised all due diligence to ensure that the sub-contractor would pay the national minimum wage to workers.The government intends to issue guidance on what constitutes due diligence in due course. The guidance will include some best practice principles for you to consider when carrying out due diligence checks in relation to sub-contractors. These could include:
You should also consider getting a guarantee or indemnity from the sub-contractor that they will pay their workers no less than the minimum wage. Another option would be setting a turnover or reserve threshold for sub-contractors as part of the tendering criteria.Let us know if you’d like any further information on the impact of these Regulations on you by contacting Tony Norris or Joga Singh.
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