NA81-Recruitment of Self-Employed and Limited Company Workers Policy

Registration Number: {{org_field_registration_no}}

Recruitment of Self-Employed and Limited Company Workers Policy

1. Purpose

The purpose of this policy is to outline the process and principles adopted by {{org_field_name}} when recruiting, onboarding, and managing self-employed individuals and limited company workers who provide healthcare services through the agency. As a temporary healthcare staffing agency, {{org_field_name}} occasionally engages with professionals operating on a self-employed basis or through their own limited companies. This policy is designed to ensure that such arrangements are lawful, transparent, safe, and in line with the relevant legal and regulatory frameworks, including employment law, tax regulations, safeguarding requirements, and Care Quality Commission (CQC) standards. The policy aims to protect service users, ensure regulatory compliance, and provide clear guidance to all involved parties. It reflects the requirements of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, the Equality Act 2010, IR35 (Off-Payroll Working) legislation, and other relevant guidance from HMRC, CQC, and Skills for Care.

2. Scope

This policy applies to: All registered nurses, healthcare assistants, and healthcare professionals engaged by {{org_field_name}} as self-employed workers or through limited companies. All directors and agency staff involved in the recruitment, onboarding, and management of self-employed and limited company workers. All placements and assignments arranged through {{org_field_name}} where self-employed or limited company workers are deployed in care homes, nursing homes, and other healthcare settings.

3. Related Policies

Recruitment Policy – Safeguarding Adults Policy – Verification of Identity and Right to Work Policy – Training and Development Policy – Equality, Diversity, and Inclusion Policy – Code of Conduct – Incident Reporting and Investigation Policy

4. Policy Statement

{{org_field_name}} is committed to ensuring that the recruitment and use of self-employed and limited company workers is carried out fairly, legally, and in a way that safeguards the safety of service users and promotes high-quality care. The agency will ensure that: All recruitment processes for self-employed or limited company workers are robust and equivalent in standard to those used for directly employed agency workers. The requirements of tax law, including IR35, are adhered to in full. All such workers are subject to the same safeguarding, vetting, and compliance checks as employed staff. Clear documentation and agreements are maintained outlining responsibilities, expectations, and working arrangements. The independence of self-employed status is respected, while ensuring compliance with all applicable standards for health and social care.

5. Definitions

For the purpose of this policy: Self-employed worker refers to an individual who provides services to {{org_field_name}} on a self-employed basis and is responsible for their own tax, National Insurance, and financial arrangements. Limited company worker refers to an individual who provides services through a personal service company or other limited company structure. IR35 refers to the off-payroll working legislation which aims to determine whether an individual working through an intermediary is effectively an employee for tax purposes.

6. Responsibilities

Directors The directors of {{org_field_name}} will: Ensure that recruitment of self-employed and limited company workers complies with this policy and all relevant legislation. Make status determinations under the IR35 rules using HMRC’s Check Employment Status for Tax (CEST) tool and document the decision. Ensure all vetting, compliance, and safeguarding checks are conducted before any self-employed or limited company worker is placed in a healthcare setting. Ensure that clear service agreements are in place with self-employed workers and limited companies, outlining expectations and compliance requirements. Monitor ongoing performance, training compliance, and professional conduct. Review this policy annually.

Self-Employed and Limited Company Workers All self-employed and limited company workers engaged by {{org_field_name}} must: Comply fully with the terms and conditions outlined in the service agreement. Meet all statutory and agency-specific recruitment and compliance requirements. Declare promptly any changes to their professional registration, DBS status, insurance, or other relevant circumstances. Provide evidence of appropriate professional indemnity insurance. Work within the policies and procedures of the client organisation during assignments. Accept personal responsibility for tax and National Insurance contributions unless determined otherwise under IR35.

7. Recruitment Process

Self-employed and limited company workers will be recruited through a process that includes: Completion of an application and registration process. Identity verification. Right to work checks. Verification of professional qualifications and registration with relevant regulatory bodies (e.g., NMC, HCPC). Enhanced DBS (Disclosure and Barring Service) check and update service status where applicable. References from previous employment within the healthcare sector. Completion of agency induction, including safeguarding, health and safety, infection control, and role-specific mandatory training. Assessment of competence for the intended role. IR35 assessment to confirm employment status.

8. IR35 Compliance

{{org_field_name}} will ensure compliance with IR35 legislation by: Conducting an IR35 status determination for every self-employed or limited company worker prior to placement. Issuing a Status Determination Statement (SDS) to the worker and their intermediary (if applicable). Applying appropriate PAYE deductions if the worker falls inside IR35. Respecting legitimate self-employed status where determined but continuing to apply the same safeguarding and vetting obligations as for employed workers.

9. Agreements and Contracts

A formal service agreement will be issued to all self-employed and limited company workers. The agreement will include: Terms of engagement, including duties, rates, invoicing, and payment terms. Professional standards expected during assignments. Confirmation of independent contractor status (where applicable). Requirements relating to insurance, qualifications, and compliance with policies. Confidentiality, data protection, and safeguarding obligations. Termination procedures.

10. Safeguarding and Compliance

Self-employed and limited company workers will be subject to the same safeguarding and compliance procedures as employed staff, including: Annual mandatory training updates. Compliance with the Safeguarding Adults Policy. Reporting of safeguarding concerns, incidents, and complaints in line with agency procedures. Adherence to client-specific policies during placements.

11. Training and Professional Development

All self-employed and limited company workers must: Complete the same mandatory induction and training as employed staff prior to placement. Complete refresher training as required to maintain compliance with client and regulatory expectations. Participate in clinical supervision, appraisal, and reflective practice sessions when offered. Maintain up-to-date knowledge relevant to their role and regulatory requirements.

12. Insurance Requirements

All self-employed and limited company workers must provide evidence of: Valid professional indemnity insurance that covers the full scope of their practice. Public liability insurance (if applicable). Employer’s liability insurance (for limited companies employing staff other than the director). The director will verify and retain copies of insurance documentation prior to deployment.

13. Equality and Non-Discrimination

{{org_field_name}} is committed to providing equality of opportunity for all applicants and will not discriminate on the grounds of age, disability, sex, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, or sexual orientation. All recruitment decisions will be made based on competence, qualifications, and suitability for the role.

14. Monitoring and Quality Assurance

The directors will: Maintain accurate records of all self-employed and limited company workers engaged. Monitor compliance with this policy through regular audits of records, feedback from clients, and supervision outcomes. Review incident reports and complaints relating to self-employed and limited company workers. Take corrective action where concerns are identified, including removal from the agency’s register if necessary.

15. Record Keeping

The following documents will be maintained securely for each self-employed or limited company worker: Completed application form. Copies of qualifications and registration certificates. DBS clearance. References. Training records. Insurance documentation. IR35 status determination. Signed service agreement.

16. Review and Continuous Improvement

The directors will: Review this policy at least annually or sooner if legislation, guidance, or best practice changes. Update recruitment procedures to remain compliant with any new legal or regulatory developments, including HMRC and CQC requirements. Engage with external auditors, clients, and professional bodies to continuously improve processes for engaging self-employed and limited company workers.

17. Policy Review

This policy will be reviewed annually or earlier if: Changes occur in employment or tax legislation (e.g., IR35 updates). Changes are introduced by regulatory bodies such as the CQC or HMRC.

Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
Copyright © {{current_year}} – {{org_field_name}}. All rights reserved.