What is bodyshopping?

[ArgieBee]

I have heard that bodyshopping is illegal, but what exactly is it and what law makes it illegal?

[HSMP2008_JANUARY]

Where did you hear that body shopping is illigal??

[Wanderer]

Where did you hear that body shopping is illigal??

Err, it is illegal.

[HSMP2008_JANUARY]

Where did you hear that body shopping is illigal??

Err, it is illegal.

I apologize

[magsi23]

can i ask what on earth is bodyshopping?

[HSMP2008_JANUARY]

can i ask what on earth is bodyshopping?

Body shopping nomenclature is usually used in IT industry in India. That means Company A sending its resource to Company B and charging Company B hourly/weekly for the service.
Most of the Indian companies when they send their engineers onsite for work, they are termed as body shopping.

I don’t think its illegal and its just a trade.

[Wanderer]

It;s illegal in the UK to employ people on Work Permits and contract them out.

http://www.immigrationboards.com/viewto ... sc&start=0

[ViperWiper]

Not true - most consulatncies, including UK based ones use that model - 'bodyshopping' is a model where you supply the 'personnel' for a project rather than doing the entire project.

I have worked as a 'body' for a number of investment banks and govt projects via one of the biggest Consultancy company.

It;s illegal in the UK to employ people on Work Permits and contract them out.

http://www.immigrationboards.com/viewto ... sc&start=0

[llNicell]

It;s illegal in the UK to employ people on Work Permits and contract them out.

http://www.immigrationboards.com/viewto ... sc&start=0

I do not agree with you…..Your interpretation about “body shoppingâ€

[PaperPusher]

See this:

Caseworkers should be satisfied that the employer has clear responsibility for determining the duties and functions of the post rather than merely supplying personnel. If the work shows that the person is paid by the hour (suggesting that the contract is for personnel); or that the third party employer will have responsibility for allocating duties to the permit holder (for example, in the NHS if patients are allocated by the NHS administration); then the contract should be discussed with managers. Suitable deliverables include a discrete piece of work (for example, installing a particular IT system) or project. Work that is expected to be ongoing, with no end date on the contract, should be discussed with managers to ensure that the employer is not supplying personnel.

What to do if?
Contract describes supply of staff - The contract should describe the piece of work that the employer is responsible for. If it describes the supply of staff alone, the case would fall for refusal. For both Pre-contract work or After Sales Service the documents provided should describe a piece of work that the employer is responsible for. If they describe the supply of staff alone, the case would fall for refusal and P85B should be used in the refusal letter.
Where caseworkers come across evidence that we have accepted a contract for an employer who is in fact providing personnel, the employer comments should be noted and notice served by the team HEO on any future application. It is usual to issue 6 months notice, using paragraph P70P in the letter. Any subsequent applications will be subject to the employer providing a new contract that fully meets the requirements outlined above.

Work Permit guidance regarding contracts

[ChetanOjha]

It;s illegal in the UK to employ people on Work Permits and contract them out.

http://www.immigrationboards.com/viewto ... sc&start=0

That is not true. Companies process work permit for their employees and send them to work on their client's site or projects.There is nothing illegal about it. Most of the companies working on offshore-onshore model i.e. they take project from UK companies and to compete those projects they either use their existing employees or hire new people. What is illegal in this? When employee leaves a company, the work permit he is on i.e. sponsored by the company- become void(as company cancels those work permits) and hence employee has to get new work permit from his future company. So in any way employee cannot use the work permit of his previous employer.

Yes, I know there is a debate going on over Intra-Company Transfer(ICT) which I don't want to get into.But even that is not illegal.

[PaperPusher]

And this:

Work for which we do not issue letters of approval

48. We do not issue Business and Commercial work permits for:
• unskilled jobs; or
• self employment.

49. We will not issue a letter of approval if the service that you, the employer, provide to a client is for the supply of personnel only. Consequently, we do not issue letters of approval to recruitment or employment agencies and similar types of business where they are employing a person solely to provide the person's services to one or more clients under a contract. This restriction also applies when the employment would be supplementary to the job for which the letter of approval has been issued (see paragraphs 178-179).

http://www.ukba.homeoffice.gov.uk/sitec ... esguidance

[PaperPusher]

Most of the companies working on offshore-onshore model i.e. they take project from UK companies and to compete those projects they either use their existing employees or hire new people.

The problem is when the employer is not responsible for the work and the work involves the work permit employer suppling personnel only to their client, rather than a fulfilling contract for a particular piece of work.

The term "bodyshopping" as I understand it does mean supplying personnel only. It doesn't mean that bodyshopping is illegal in all cases.

I think Wanderer was responding to this post:

Body shopping nomenclature is usually used in IT industry in India. That means Company A sending its resource to Company B and charging Company B hourly/weekly for the service.
Most of the Indian companies when they send their engineers onsite for work, they are termed as body shopping.

I don’t think its illegal and its just a trade.

[ArgieBee]

It sounds like as long as the contract is worded correctly it is safe to send employees on tier 2 visas to work for a client.

[rg1]

Body shopping is very much a grey area.

It is not just confined to Indian IT cos! Even many British companies do it - not just in IT sectors but in several other sectors.

If you can show Home Office that your consultants are required to work in 3rd party's office and they are highly skilled professionals, body shopping is no longer illegal.

The only case it becomes illegal when you hire overseas worker when residents works are already available to do the job. But that's the basis of immigration control anyway.