Dear Operator,
Employment of Drivers and Passenger Assistants
It is unfortunately necessary for us to issue a reminder to all contractors about the standards that we expect when employing drivers and passenger assistants on County Council contracts. All contractors must ensure that they are correctly determining the employment status for each and every member of staff, and then comply with all employment legislation. We strongly advise that contractors refer to the Government guidance at Employ someone: step by step - GOV.UK (
http://www.gov.uk) and to take professional advice if needed.
When we conduct operator systems audits, particular attention will be paid to employment practices and action will be taken where we find any non-compliance.
Passenger Assistants (PAs)
In our view, PAs cannot be regarded as self-employed. All contractors have agreed to this when completing the pre-qualification questionnaire to join the Dynamic Purchasing System. Contractors must note the following key points:
Under no circumstances are PAs to be paid via the driver or employed by the driver. PAs must be paid directly by the contractor.
All PAs must receive at least the minimum wage. See National Minimum Wage and National Living Wage rates - GOV.UK (
http://www.gov.uk)
In our view, PAs are Mobile Workers and their working time includes the entire time they spend on the vehicle – and not just the time that passengers are on board the vehicle.
An effective and auditable payroll or equivalent system must be in place that can evidence hours worked by PAs and wages paid including deductions such as National Insurance and PAYE income tax as applicable.
In the (in our view) exceptional circumstance a PA is engaged on anything other than a contract of employment, we would expect as a minimum there to be a record of Employment Status check for each individual concerned placed on file. This check can be obtained using the HMRC tool at Disclaimer - Check employment status for tax - GOV.UK . When determining employment status using this tool, contractors are responsible for answering the questions honestly and accurately.
A comprehensive personnel file must be kept for each PA – please refer to the “Special Conditions” at Schedule A Annex A of the DPS Terms and Conditions.
Drivers
It is the contractor’s responsibility to determine the correct employment status for a driver. We acknowledge this could depend upon, for example, whether they are an owner-driver or a driver engaged to drive a company owned vehicle. Employment status can be checked using the HMRC tool at Disclaimer - Check employment status for tax - GOV.UK . When determining employment status using this tool, contractors are responsible for answering the questions honestly and accurately.
Contractors must note the following key points:
As a general matter, PSV drivers cannot be regarded as self-employed.
Any self-employed owner driver of a Hackney Carriage or Private Hire Vehicle must be engaged under a contract of service. Verbal agreements are not acceptable.
Employed drivers must be engaged under a contract of employment.
There must be a clear record of payments made to drivers whether employed or self-employed.
Where drivers are engaged under a contract of service, we would expect to see those drivers submitting invoices to the contractor each month or each week for services provided, with a clear record of payment made.
We advise against cash payments where possible. However, where payments in cash are deemed necessary, there should be clear accounting records including receipting.
A comprehensive personnel file must be kept for each driver – please refer to the “Special Conditions” at Schedule A Annex A of the DPS Terms and Conditions.
When bidding for contracts, it is your responsibility as contractor to ensure that your pricing is sustainable and allows you to meet all of your contractual and legal obligations in respect of employing drivers and PAs.
If you have any queries about our contractual requirements please let us know. However, we will not advise on matters of employment and it is for contractors to take specialist advice as needed to maintain compliance with legal requirements.
Many thanks,
I think the rule makers need to get real, after all the above they still want a champagne service at lemonade prices, if ive a driver and P.A. in a car at 2 x £9/hr is the run going to cover 3hrs morning and 3hrs afternoon?
every tender sent to us has the "live" (loaded?) mileage as if thats the only factor in pricing, as if traffic and waiting at schools (mornings and afternoons) doesnt count, we do one where the pupil is onboard 20 minutes each way, but we are kept waiting outside 20 minutes mornings and afternoons, add that up over 39 weeks school year