Work For Pleasure Theme Events www.workforpleasure.com

Domestic Cleaner ?Employed, Self-employed or Sub-contractor

Domestic Cleaner –Employed, Self-employed or Sub-contractor

I have lost count of the number of times I have been asked the difference between agency cleaners and using a cleaning company.  There is no short answer as each has its merits so I'll just try to address the main points here.

Taking on a house cleaner in the UK is a great way to enjoy more time with the family or just kick your shoes off and sit back and relax more.  So once you are in a position to take on your own do you ring a stick a notice in your local shop or find a cleaning company?  Hang on isn't a cleaning company and cleaning agency the same thing?  Well, that is a big NO as these two types of businesses are at opposite ends of the cleaning stick, and you would-be wise to choose the right one for you before taking on any cleaner.

The cleaning company operates as business for profit as does the cleaning agency – so far so good, but the cleaning compared to the subcontractors used by the cleaning agency.  So what is the big deal there?  Most people are only interested in getting their house cleaned and don't care how the staff are employed.  Arrhh....... that's the problem, or not as the case may be.

If the cleaner is self-employed then you pay them, right, and just pay the introduction fee to the agency for providing the introduction.  Once the introduction has taking place is the cleaner working for you (the house holder), or indeed them (self-employed).  Tax is not the big issue unless they already earn over the threshold in other jobs (currently £95 per week) then if you are their employer you have to tax them. But hang on, the agency introduced them as a subcontractor so that means the cleaner is self-employed and sends in invoices to the cleaning agency to be paid and you pay the cleaning agency direct, but that is not the case with many agencies, the

That's ok though as the cleaner with their own equipment is surely self-employed as the tools are not provided by the householder, or the replacement cost of them when they breakdown.  But again big fat NO, most agency cleaners insist the householder provides the equipment, so this is more employed than self-employed.  Who cares?  The householder should care as the legal side of and you could face es if it is found that you are in fact the employer of your cleaner.  Ask the questions below and see if you have a self-employed cleaner or if  in fact you employ them.

]]>

As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

v  Do they have to do the work themselves?

v  Can someone tell them at any time what to do, where to carry out the work or when and how to do it?

v  Can they work a set amount of hours?

v  Can someone move them from task to task?

v  Are they paid by the hour, week, or month?

, you need to ensure that each prospective worker is before their employment commences. By doing this, you will establish a 'statutory excuse' against being liable to pay a fine (known as a 'civil penalty') for employing an illegal worker.  Yes an MP has been caught on this very point!

Where there is an agreement with the Agency that the cleaner be paid direct by you or your business then you will need to decide whether the cleaner is, in fact, an employee of yours, the agency or self-employed.

The easier option would be to cleaners and employ the services of a cleaning , and the company takes care of the employees, insurances and so on.  Oh yes, insurance, are the agency cleaners insured?  This is worth checking as well, as the agency may state that the cleaner is covered under their public liability and employees' liability, but are they?

Insurance and contractual issues when using subcontractors

Extract taking from Business Link

Insurance issues

As well as employment rights, tax and health and safety, you should consider liability insurance when you engage contractors or subcontractors:

If you have employees, you need employer's liability insurance. However, non-employees - such as contractors - aren't covered. Therefore, you will also need to have .

Your PLI policy should cover contractors/subcontractors working for you away from your premises unless the contractors/subcontractors have their own PLI with the same level of cover.

If contractors/subcontractors are working on your behalf, check they have appropriate insurance.

Whether or not you need employers' liability insurance for someone who works for you depends on the terms of your contract with them. This contract can be spoken, written or implied. It does not matter whether you usually call someone an employee or self-employed or what their tax status is. Whether you choose to call your contract a contract of employment or a contract for services is largely irrelevant. What matters is the real nature of your relationship with the people who work for you and the nature and degree of control that you have over the work they do.

In most cases you don't need to worry about insurance for your cleaner as your household insurance will cover you, won't it?  Well that would be true if the cleaner only worked for you, ar... worked for you, yes that means that you have to employ them to be covered, so then the cleaner is not self-employed but employed, so is your responsibility. But if they work for other households then your as it could be seen as self-employed, or maybe a subcontractor to the agency.  So what does happen when something goes wrong?  Ar..... the cleaner if self-employed working for a number of households will hold their own public liability insurance, but do they?

Now we have finally got to the point that who is responsible for the insurance, the cleaner or the agency?  You pay them direct so that would suggest that the agency has done their work by introduction, so check that cleaners insurance.

What happens if I do not have employers' liability insurance?

The Health and Safety Executive (HSE) enforces the law on employers' liability insurance and HSE inspectors can check that you have employers' liability insurance with an approved insurer for at least £5 million. They may ask to see your certificate of insurance and other insurance details.

You can be fined up to £2500 for any day which you are without suitable insurance. If you do not display the certificate of insurance or refuse to make it available to HSE inspectors when they ask, you can be fined up to £1000.

Covered by owners household insurance (check this, as this would mean that you employ them, hence the question self employed or not).

What agreement do you have and who with?  Is it the agency or the cleaner, let's look at contracts another day, much better to stick to a cleaning company who employ staff.