Engaging the services of former employees

Information about the hiring of former employees
women shaking hands in office

I. General

Amended and Reissued May 1, 2005

This policy provides the guidance needed when one is considering engaging the services of a former BP employee. The status of the former employee's termination of employment with BP must be considered before a decision to engage the services of the individual can be made.

To ensure compliance with the Internal Revenue Service's (IRS) federal income tax withholding and FICA and FUTA tax requirements, any services of an individual who was formerly employed as an employee of BP must be obtained either by:

  • Direct reemployment of the individual as a full-time, part-time, temporary, occasional, or term contract employee of BP, or
  • Use of a third party that employs the individual as its own employee and withholds both income and employment taxes on the individual, and must meet the provisions set out in section III of this policy.

For purposes of this policy:

  • Former BP employees include former employees of any U.S. company currently or formerly affiliated with BP including but not limited to BP America Inc., BP Amoco Corporation, BP Corporation North America Inc., Atlantic Richfield Company ("ARCO"), Amoco Fabrics and Fibers Company, Amoco Oil Company, BP Products North America Inc., BP Amoco Chemical Company, BP Chemicals Inc., Innovene, BP Pipelines (North America) Inc., BP America Production Company, BP Exploration (Alaska) Inc., BP Solar International Inc., The Standard Oil Company, The Carborundum Company, Kennecott Corporation, Amoco Foam Products Company, Amoco Performance Products, Inc., Burmah Castrol Holdings, Inc., Castrol North America Inc., Castrol Industrial North America Inc., Castrol Heavy Duty Lubricants Inc., Dome Petroleum, Vastar, etc.
  • An entity that has no employees on its payroll other than the former BP employee and his/her spouse is not considered to be a valid third party under any circumstances and the services of the former BP employee may never be engaged through such an entity. This is true even if the entity provides services of other individuals if all of those individuals are independent contractors or consultants to the entity and none of them are employees of the entity.

II. Independent contractor status not permitted

To ensure compliance with a letter of agreement between BP and the IRS, services of an individual who was formerly employed as an employee of BP may never be engaged under an individual independent contractor or consulting arrangement with the individual.

This prohibition applies even if the services of the former BP employee are provided to BP through a third party if the former BP employee is an independent contractor or consultant to that third party rather than an employee of that third party. In other words, in all cases, the former BP employee must be employed either as a direct employee of BP or as an employee of a third party in order to ensure that some entity (either BP or the third party) withholds both income and employment taxes on the individual.

III. Waiting periods

To ensure compliance with qualified savings plan and pension plan federal tax code restrictions and employment nondiscrimination rules, an individual who was formerly employed as an employee of BP may not be engaged in any capacity under the provisions of section I of this policy: (a) Until at least ninety (90) days have elapsed from the individual's date of termination from BP, and (b) In the case of a former BP employee who terminated employment under either a voluntary or an involuntary BP severance program, until at least one hundred eighty (180) days have elapsed from the individual's date of termination from BP.

Exceptions. Limited exceptions to these waiting periods may be made if approved by the Manager, U.S. Policies, who will review the relevant facts and circumstances of the specific situation in making a determination. Anyone wanting to engage the services of a former BP employee before ninety (90) days have elapsed from the individual's date of termination in the case of a non-severee, and before one hundred eighty (180) days have elapsed from the individual's date of termination in the case of a severee, must contact the Manager, U.S. Policies, in order to request an exception.

IV. Importance of timing when determining need for services

If the need for the BP employee's services is known before the individual terminates BP employment, then it is very important that this need be considered before the individual actually terminates BP employment because it may be possible to extend the employee's BP employment to accommodate the need. Even if it is not possible to extend the employee's BP employment, it is important to contact the Manager, U.S. Policies, before the individual terminates BP employment to discuss whether or not an exception to the applicable waiting period (as described above) will be approved so that expectations are set appropriately before termination of employment occurs.

V. Use of a third party for engaging the services

If direct reemployment as a full-time, part-time, temporary, occasional, or term contract employee of BP is not appropriate or desirable, the services of an individual who was formerly employed as an employee of BP must be engaged through a third party company that will employ the former BP employee as its own employee and then assign the former BP employee to provide services to BP. Procurement & Supply Chain Management can provide the names and contacts for BP-preferred independent staffing companies (temporary employment agencies) as well as specialized consulting firms.

Third Party Requirements. If a non-BP-preferred third party company is used, it must meet the requirements defined in this section. Further, contracts with third parties, if not already in existence, should be negotiated/reviewed by Procurement & Supply Chain Management and/or BP Legal, and must include BP approved language on employment status, income/employment tax withholding and other policy requirements.

Very strict limited exceptions may be made to allow the use of a third party (corporation or partnership) in which the former BP employee may be a shareholder, partner, principal or other full or partial owner as long as the third party has employees on its payroll other than the former BP employee and his/her spouse. BP Legal, in conjunction with Tax, must review and approve any such arrangement before such third party can be used.

VI. Internal control

To ensure compliance with this policy, management will be asked to confirm accurate application of this policy through the annual Compliance and Ethics Certification process.

The company reserves the right to unilaterally amend, change, modify, delete, replace or add to the statements in this policy, at any time, with or without prior notice. The company also reserves the right to interpret the provisions of this policy, and such interpretations will be final and binding. In addition, not every situation can be anticipated in written policies, guidelines and/or procedures, and the facts surrounding any situation can require discretionary judgments by appropriate levels of management.

This policy is not intended to create, nor does it create, any express or implied contractual rights in any person. Unless he/she has entered into an express written agreement signed by an authorized company representative, each employee of the company is an "at-will" employee. Just as any at-will employee may terminate his/her employment at any time and for any reason, the company may terminate any at-will employee at any time, with or without cause, and with or without prior notice. This policy does not represent a contract, or an offer to form a contract, and does not create any binding contractual commitments between an employee and the company regarding any subject, and does not alter or limit the at-will employment status of company employees.

© 2000-2011 BP Corporation North America Inc. All Rights Reserved. | Legal disclaimer | Privacy statement | PrintPrint this page