Land & Water Case Study

Agency Labour Compliance Audit Case Study

Land & Water is first and foremost an environmental company, full of people who are passionate about caring for the nation’s coastline, network of rivers, streams, wetlands and waterways. 

The business started 40 years ago, and the company has grown and flourished to support the changing landscape and environments we live in and leave the world a better place.

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Their clients vary from government agencies to large corporations and private individuals, relying on them for the diverse and creative problem-solving mindset they bring to every project. Over the years, they have designed equipment specifically to solve complex engineering challenges.

The company has also developed inventive ways to recycle waste products, patented waste treatment technologies, and incorporated species-saving solutions into the most sensitive habitats.

The Background

Land & Water contacted us to help them carry out an audit on their recruitment agencies

Datum RPO's audit checks for our clients cover 100% of supplied workers and are carried out every six months, ensuring the highest levels of quality service. By reviewing the processes, systems and records in place for each recruitment partner, you can verify ongoing compliance and ensure that your agencies have everything they need to meet the standards you deserve.

Audits are an excellent tool for evaluating the level of risk within a supply chain. We recommend setting up a programme which will verify;

The objective of Land & Water's recruitment agency audits were;

1. To ensure compliance with legislative and regulatory requirements.
2. To ensure compliance with the agreed terms of business.
3. To verify necessary worker pre-employment checks are completed.
4. To understand how workers have been engaged.
5. To understand that the labour provider and any sub-suppliers are suitably insured.
6. To understand if the labour provider can be deemed socially responsible regarding the treatment of worker pay, benefits, and statutory employment rights expanded accordingly.

The Audit Solution

The major elements of the Datum Audit provided to Land & Water are:

1. To verify if their suppliers comply with legislative and regulatory requirements
2. To verify if recruitment best practice is adhered to and suppliers are operating in\ line with any agreed SLA’s
3. To verify if suppliers are socially responsible with their treatment of worker pay, benefits and statutory employment rights
4. To verify if supplier’s operating processes regarding the disclosure of finances and redress of grievances can be deemed to be ethical.

Agency resource in scope of the audit included:

• Pre-audit questionnaire
• Certificate of incorporation
• VAT certificate of registration
• Documentary evidence that the labour
• provider is registered for PAYE
• Confirmation of business insurance
• Template registration forms
• Template worker contract
• Health & safety policy
• Equal opportunities and diversity policy
• Environmental policy
• Complaints policy and procedure
• Modern Slavery Statement
• ISO certificates (if held)
• Membership certificates (e.g. ALP,
• REC, APSCo)

The Result

Significant Findings

• Out of a sample size of 68 workers, 34 (50%) have failed right to work checks
• Inconsistent process for obtaining and checking licenses and qualifications
• Worker engaged via offshore payroll company; no deductions made to gross payment.

Other Findings

• 33 workers paid via a payroll intermediary which recently went into liquidation
• 48 workers may not have the required CSCS / CPCS

Action

A plan was put in place to rectify all the above failure items, and Land and Water supplier agencies and workers are now fully compliant with all relevant UK legislation.

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