Public Liability Insurance for 16 year old labourer

Daphne01

My 16 year old nephew has been told he needs PLI, he works as a builder's labourer.
All I can find on line is liability insurance for builders/Labourers with their own companies, does he have to be classed as self employed with a company name?

I'm at a loss and have no experience in this field so would appreciate any input

Thanks in advance:beer:

dacouch

Is he being paid as self employed by his "boss"

Will he be invoicing his "Boss" for his "wages"

Is this a roofer by any chance?

ceredigion

If he is an employee (PAYE) it is his employers problem.

Daphne01

He was taken on as a placement from an educational programme and paid in hand, they took him on as a labourer a few weeks ago and have told him he needs PLI by tomorrow.

He is paid by the builder and does not invoice him, no he isn't a roofer.

He says that they are employed by a site that has requested he register for PIL before they will pay him,

He is paid £50 per day and the builder he was taken on by takes £10 per day for his tax which means that he's PAYE? Is that correct?

EdGasket

He shouldn't be paying any tax unless he expects to be earning more than the single-person's allowance which is £11,000 for the year. As it is a placement, he is unlikely to reach that and even if full time for a year, would barely exceed it! He may be liable for some National Insurance but not 20% of his pay!

With these people:

https://www.tradedirectinsurance.co.uk/frm_1_PL_BasicInfo.aspx?tid=8

Looks like it will be around £100 for a sole trader cover but you'd need to ring them and check that is the correct terminology for your nephew.

Can't the 'educational program' look into this for you as they made the placement they should be responsible?

dacouch

He's an employee or a labour only subcontractor either way a Public Liability Policy would be a waste of money as they will not pay out. This is because he's an employee / labour only subcontractor and personally as no liability, his employer would be liable and should therefore have Public Liability which includes cover for him and also an Employers Liability Cover.

A very rough summary.

An "Employee" is normally PAYE and works for that employer, the employer provides P/L and Employers Liability Insurance.

A "Labour Only Subcontractor" works under the direction of the Boss eg the boss tells him what to do & when and the boss provides materials. The Boss covers the P/L and E/L Insurance.

A "Bona Fide Subcontractor" works under his own direction eg he is not told what & when to do it and normally provides his own materials. He would provide his own P/L Insurance as he's responsible for his own mistakes.

Daphne01

He left the placement when they took him on properly, have messaged him to clarify. Thanks for the answers and the link EdGasket, will look at that

Daphne01

dacouch wrote: »

He's an employee or a labour only subcontractor either way a Public Liability Policy would be a waste of money as they will not pay out. This is because he's an employee / labour only subcontractor and personally as no liability, his employer would be liable and should therefore have Public Liability which includes cover for him and also an Employers Liability Cover.

A very rough summary.

An "Employee" is normally PAYE and works for that employer, the employer provides P/L and Employers Liability Insurance.

A "Labour Only Subcontractor" works under the direction of the Boss eg the boss tells him what to do & when and the boss provides materials. The Boss covers the P/L and E/L Insurance.

A "Bona Fide Subcontractor" works under his own direction eg he is not told what & when to do it and normally provides his own materials. He would provide his own P/L Insurance as he's responsible for his own mistakes.

That one seems to fit, thanks for the help

Marktheshark

He needs to contact the supervisor or the boss of the person who put him on the placement.
Something is very wrong here.

dacouch

Daphne01 wrote: »

He left the placement when they took him on properly, have messaged him to clarify. Thanks for the answers and the link EdGasket, will look at that

You're wasting your time with that website as any P/L he takes out is not worth the paper it's printed on.

Taken from the same website...

"Q. What is a labour only sub-contractor?

A. Providing an exact definition for a labour only sub-contractor is not straightforward, but if you can answer “yes” to most of these, the worker is probably a labour only sub-contractor:

Are they paid by the day/ week/ month?

Can they receive overtime?

Do they always have to do the work themselves?

Can you tell them at any time what to do, where to do it, and how to do it?

Do you supply the materials?

Looking at the questions above, to some extent, it boils down to the level of decision making and autonomy that the worker has. For the purposes of UK labour law; a labour-only sub-contractor is an employee. They do not provide their own materials and tools normally. They work under the direction of the contractor. They will need to be factored into your insurance calculations as employees as typically they will not provide their own insurance coverage.

Q. What is a bona-fide sub-contractor?

A. Providing an exact definition for a bona sub-contractor is not straightforward, but if you can answer “yes” to most of these questions, the worker is probably a bona fide sub-contractor:

Do they agree to do the job for a fixed price, regardless of how long the job may take?

Do they supply the materials at their own cost?

Do they hold their own public liability insurance?

Can they hire someone to do the work, or engage helpers at their own expense?

Within an overall deadline, can they decide what work to do, and how and when to do the work?

Looking at the questions above, to some extent, it boils down to the level of decision making and autonomy that the worker has. Bona-fide sub-contractors are generally deemed to be contractors who work without direction from the Insured, hold their own insurance and usually provide their own materials and tools."

https://www.tradedirectinsurance.co.uk/Public_Liability_Insurance_FAQs.aspx#8

Which of the above descriptions does your son fall into?

jonesMUFCforever

Can a minor sign up for any kind of insurance like this?