Research into pay and working arrangements – info required

[Sarah]

I am currently undertaking some research in to working hours for service companies in the oil and gas industry, specifically those individuals who are required to spend irregular amounts of time offshore working on contracts, thus meaning the traditional fixed shift rotations wouldn’t be appropriate.

These individuals would also be required to undertake some work back onshore at their home base as required so there needs to be some flexibility. I am struggling at the moment to find any examples of best practice or benchmarking in what appears to be a very specialised field!

Is there anyone that can give me examples of what normally happens. I am particularly interested in whether anyone works on a annualised hours contract and how this suits? The other type of working I am typically coming across are day rates, but do these also occur for permanent members of staff or just those on contract?

Anyone that can provide me with some information, it would be most welcome.

Thanks.

Wozzie

[James McLauchlan]

Many International ROV personnel fall into a wide range of ’employment’ categories. Some as employees and others as day rate.

Most of our work is mobile – vessel (Ship or Barge) based – but there are a number of systems working on fixed installations under drilling support contracts.

1) Employees
(Employed directly by the ROV owner/Operator company)
Often broadly speaking this is interpreted as follows:
Often on a fixed annual salary with a fixed minimum number of offshore days included with a bonus for days spent offshore and extra (over and above) for days worked over the agreed annual contracted minimum.
In the past there was an annul lump sum bonus included but there has been recent signs of this being eroded.

2) Limited company
(One man band employees).
Often broadly speaking this is interpreted as follows:
They are employed directly by their own – one man band – Limited company.
Sub contracting to 1) above.
or
Subcontracting to 3) below)
Their Ltd company is paid an agreed day rate by the contracting company/agency. What they pay themselves, via their own Ltd company, is up to them.
One man bad Ltd co’s are generally experienced personnel and the number of days spent offshore is up to them.

3) Agency personnel
These can be employed by the agency, or self employed, or Ltd company.
For experienced personnel (Self employed or Ltd co) the number of days spent offshore is generally up to the person working with/for the agency.
Inexperienced personnel often take what is on offer but can come up short on days.

4) Day rate direct
Self employed and working directly for 1) above. They are paid an agreed day rate but have no other company benefits as per an employee.
For experienced personnel the number of days spent offshore is up to them.
Inexperienced personnel often take what is on offer but can come up short on days.

Generally:
People do 4-6 week trips.
Jobs can also be what is called ‘job and knock’. – Arrive, stay until the job ends and go home afterwards. Typically these are jobs shorter than 4 weeks but can be longer.
Some ‘regular slots’ (on longer running projects or vessels working 24/7) are 4 weeks on, 4 weeks off.
On average 6 months a year is spent away from home working offshore.
(Note this is an average – there are always exceptions to the rule.)

Have a look at the Polls/Survey section and you will see how many days people have been doing offshore

I hope this offers some insight into the inner workings of our industry.

Hopefully others will chirp in and add some more info.

[Ray Shields]

4) Day rate direct
Self employed and working directly for 1) above. They are paid an agreed day rate but have no other company benefits as per an employee.
For experienced personnel the number of days spent offshore is up to them.
Inexperienced personnel often take what is on offer but can come up short on days.

I would kind of disagree with this description. Day Rate direct personnel are generally employees of a company who are only paid when they work, not self employed.

They do not get an annual salary, but only get paid when they work. They cannot go and work for other companies whilst being employed by that one company. They are entitled to be treated the same as other staff, they are entitled to statutory holidays (which is pro rata against the number of days they work).

It is basically a different, more flexible way of being paid.

[James McLauchlan]

Ray

In the UK maybe. Just one Kingdom comprising a limited percentage of the global subsea industry.

At this point the OP didn’t mention specifically narrowing it down to working in the UK sector.

I was trying to generalise by taking into consideration many global locations where there is often no such thing as ‘being an employee’ as a day rate direct person. Plus, day rate direct personnel overseas often work for whom ever they choose. They are not entitled to be treated the same as staff. They are not entitled to statutory holidays.

I’ve worked day rate direct all over Asia, Africa, South America. I can assure you, in these areas, no such benefits apply.

[Sarah]

That’s great, as it gives me a good idea. Have you ever heard of anyone being employed on an annualised hours contract at all so their hours are averaged over the year with a set minimum offshore?

[Author]

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