Here are 6 Principles to consider when procuring temporary labour from a supplier:
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Principle 1 – Establishing a relationship with a supplier

• When looking to establish a relationship with a supplier it is important to ask the right questions so that a company can feel confident this will meet their needs and expectations.
• Companies should ensure that there is a written contract available from the supplier which clearly outlines all the key details, including those involved with any and all associated costs of the procurement process.
• This contract should also establish the details of how the supplier engages with and treats the worker, including any and all legislative requirements under relevant employment legislation

 
Principle 2 – Adopt a prudent approach with regards to fees paid to suppliers

• Companies should consider the amount they spend on securing temporary labour, ensuring that this accommodates a reasonable rate of pay for the worker given their workload and level of responsibility.
• An appropriate person within the company should be identified to oversee expenditure on supply and to examine whether the contractual arrangement in place with suppliers delivers good value for money.
• Companies with larger procurement needs could consider inviting suppliers to compete to be the preferred provider of temporary labour, by issuing an invitation to tender. This will help the supplier to demonstrate good value for money and quality assurance.
• Companies should consider actively reviewing their arrangements for procurement regularly.

 
Principle 3 – Ensure an appropriate level of payment to the worker

• Companies should take account of the following factors when agreeing with the supplier the rate of pay that a worker will receive:
  • experience;
  • current/previous salary level; and
  • other factors, including holiday pay entitlement, pensions and National Insurance.

 
Principle 4 – Ensuring compliance with the law

• Companies should be satisfied that the worker is informed by the supplier prior to the commencement of work:
  • Who they are working for (the ‘hirer and the location of work);
  • Who they contact on arrival at the workplace (‘hirer’s contact’);
  • The assignment details (including the start date, duration and type of work undertaken, as well as any appropriate experience and qualifications required and any authorisation necessary or required by law or a professional body);
  • Hours of work
•  Companies should be satisfied that the worker they instruct via the supplier has been appropriately vetted for the nature of their work, and if applicable, in line with The Conduct of Employment Agencies and Employment Business Regulations 2003 [see further supply chain compliance advice here]

 
Principle 5 – Ensuring quality supply provision

• When procuring workers, companies should consider a supplier’s accreditations, certifications and conduct as a standard for ensuring quality provision.
• When procuring workers via an external supplier, companies should consider the arrangements for continuing professional development which are operated by the supplier and the opportunities which exist for workers to access ongoing training and development.

 
Principle 6 – Ensuring equal opportunities

• Companies should ensure that they have asked for and received confirmation that the method used by the supplier to recruit labour is operating in accordance with the Equality Act 2010.
• Companies should seek to clarify how supplier recruitment procedures ensure equality and diversity.
• Companies should also ensure they meet their obligations to promote equality and diversity throughout the procurement process.