Temporary Agency Worker (PAYE)

If the assignment is hired on a temporary basis, you will be known as a Temporary Agency ‘Worker’. This is often referred to as a ‘PAYE Worker’ across the Oil & Gas Industry. ‘Worker’ is a deemed status under UK employment legislation.

This means you are employed by way of a Contract for Service by Prodrill Energy Resource Solutions part of Zenith Energy Limited and we are responsible for all deductions including National Insurance Contributions, PAYE Tax, and any other statutory payroll deductions in the UK.

As a Temporary Agency Worker Prodrill will also be responsible for managing your holiday pay provision, employment insurances, and providing your contractual documentation.

Personal Services Company (PSC) – Limited Company Contractor

Personal Service Companies are Limited Companies that are usually set up to provide the services of one contractor. This contractor is often the company’s only shareholder and sole director. Your Limited Company will provide services directly and the services provided will be based on the skills and market experience of your personnel.

Operating as a Limited Company Contractor your business will be responsible for your own employment responsibilities, an option that gives you more flexibility to manage your own finance, contractual and tax affairs.

If you work as a Limited Company Contractor, Prodrill will have a contract for your services with your Limited Company, reflecting the contract we have with the end user client. If you are a Limited Company Contractor, you will send an invoice to Prodrill along with a record reflecting your time spent working on the end user client’s work scope. The periods of frequency billing & payment will be outlined in advance of commencing any scope of work.

Working through your own company is different from working as a PAYE employee or through an umbrella company. First, you and your company are two separate legal entities, therefore, Prodrill will pay your company, and not you, Payments can only be paid into your company bank account and not directly to you personally.

As a Limited Company, you will need to provide Prodrill with certain documentation prior to undertaking any work scopes including but not limited to:

Employers’ & Public Liability Insurance (for company)

• Professional Indemnity Insurance (if required)
• VAT Registration Certificate
• Certificate of Incorporation for the limited company
• Company bank account details and proof it is a business account, not a personal account
• Guarantee of undertaking to protect Prodrill in relation to the contractor’s tax liability

It maybe also necessary for your Limited Company to provide assurances as the competency of its personnel, right to work checks, as well as providing copies of relevant industry certification for each of its employees who undertake the work scope.

Full details of employment status and your rights can be found in the link below:

Types of employment status: Checking your employment rights - acas