Exploitation of workers?

[Black5]

I have been told by one of our clients (I manager a recuitment company) that we are too expensive for temp staff.

No problem there, but as we do a bit of perm business with them I was able to find out where they get temp staff and for how much.

They are being charged £6/hr.

Now that is not really any different to the amount it costs to employ someone at £5.05/hr (with Employers NI & WTD), so how does an agency make any money?

Well they employ foriegn workers and find accomodation for them.
Get it yet?
The workers are then charged over the odds for the accomodation.

What's wrong with this then?
The workers are happy as they earn money and are living in the UK.
The empoyer is happy as it costs them no less to use an agency as it does to employ someone themselves.
The agency is happy as it still makes money.

So is it exploitation?

[Carrera2]

Or they pay their staff through a payroll company that eliminates the erNI.

[ATG]

Black5 said:

So is it exploitation?

If the employees understand the position and are happy with it, then it isn't exploitation. If however they felt ripped off, but for some reason felt they couldn't get out of the arrangement, then it would be exploitation.

[Black5]

Carrera2 said:

Or they pay their staff through a payroll company that eliminates the erNI.

Please tell me more.

Are you saying that they are still making 95 pence per hour?

Who pays the employers NI?
And what about holiday entitlement?

[JohnSW20]

Hi Mark

You have mail

John

[Carrera2]

JohnSW20 said:

Hi Mark

You have mail

John

Comission please.

[JohnSW20]

Carrera 2

How would you like it? we do percentage kick backs, football tickets, tickets to major sporting events and free payroll funding.

I sent the e-mail off the forum as I did not want to be seen trying to gain business.

John

[Carrera2]

JohnSW20 said:

Carrera 2

How would you like it? we do percentage kick backs, football tickets, tickets to major sporting events and free payroll funding.

I sent the e-mail off the forum as I did not want to be seen trying to gain business.

John

I was only kidding.......not sure if you were or not

[petclub]

It is exploitation and depending on the industry sector maybe against licensing standards. For example, the Gangmasters Licensing Authority is a new NDPB set up to reduce/eliminate worker exploitation in the agriculture, horticulture and coastal shellfish gathering sectors. To get a licence, Gangmasters must comply with the licensing conditions. When the legislation is fully active (Oct for agriculture and horticulture) it will be illegal to either operate as an unlicensed Gangmaster or to engage one. Max sentence up to 10 years.

[JohnSW20]

Carrera 2

I was kidding. I like to get business on the standard of service not have to buy consultants. Sorry if this was not taken as a joke.

John