Jargon buster
- Opex/Capex Contingent Workers – (i.e. not a VM employee)
- Recruited to cover a resource gap within Virgin Media’s workforce headcount or to help when there is a spike in activity. Costs are invoiced to cost centres and/or project codes. These are counted as Non Employees on Oracle and are shown as Opex/Capex Contractor – Hays and non Hays. They should be recorded on Oracle as the same cost centre as the line manager (not task/project manager).
- Preferred supplier list (PSL)
- The approved list of suppliers with which Virgin Media can do business.
- 3rd party resource
- Outsourced services are services provided by a 3rd party, which may involve the transfer of people and/or assets from Virgin Media to the serving organisation dependent upon the outsource provider and their location. Outsourced employees are contractually employed by the 3rd party company on a long term basis, undertaking Virgin Media business as usual activities (and possibly in addition to work for other end users). The following guidelines may assist in determining whether a service is an Outsourced service: 3rd party resource may be branded as Virgin Media or may share Virgin Media values, despite being supplied by a third party. 3rd party resource can be directly associated with Virgin Media by customers (both internal and external) e.g. Telesales call centres, Customer Care call centres, 3rd party field engineers.
- Managed service
- Supplier / Managed Services are services provided by a 3rd party, but do not involve the transfer of people and/or assets from Virgin Media to the serving organisation. Supplier / Managed Services are services that Virgin Media and Virgin Media’s customers would not expect to be provided internally in the course of business as usual, e.g. civil contractors, our on-site temp recruitment, K&N Logistics.
- Fixed term contract
- Typically recruited to cover a gap for long term sickness or medium term requirement. They are defined as an employee of the company and are paid by the company on one of the company payrolls with a contract of employment that has a defined end date. Headcount is included in the Finance FTE category. These are shown on Oracle as Fixed Term and should be against the same cost centre as the line manager (not task/project manager).
- Charge rate
- The full hourly or day rate that Virgin Media pays for a contingent contract resource, which includes the supplier’s fee, and any statutory costs including NI, pension.
- Pay rate
- The hourly or day rate that Virgin Media pays for a contingent contract resource excluding the portion paid to the supplier and statutory organisations.
- What is a contingent worker
- A contingent worker is typically hired by an organisation on an on-demand basis – they are not on the company’s payroll because they are not permanent employees of the organisation. Contingent workers are generally given a specific job to do during a set amount of time and they will receive a contract outlining all aspects of the project, including time frames and payment.
- Types of contingent workers
- Contingent workers choose how they wish to operate in terms of their employment status; there are different benefits to being a PAYE worker versus a Umbrella PAYE worker. Below is a snapshot summary of terms you may have heard: An Umbrella Company provides a ready made invoicing vehicle for contractors whilst also removing the administrative duties normally associated with contracting. The Umbrella Company normally issues invoices on the contractor’s behalf, collects payments from clients/agencies, calculates tax and N.I contributions and pays the contractor their net pay direct to their personal bank account. In an umbrella company the worker has an overarching employment contract with the company. The worker is not a director, nor do they own any shares in the company. The worker works for end clients but rather than working directly for them, they provides their services through the umbrella company. PAYE stands for pay-as-you-earn. This means that every time the Contingent recruitment team or other suppliers pay a PAYE worker, tax & NI are deducted and paid to HMRC and any pension contribution to the pensions provider. PAYE makes it much easier for employees to pay their tax by spreading the payment evenly over the tax year, rather than having to face a single tax bill once per year.
