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Being 'moved' to CL1. The new contract overlaps...extended too...?!?

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    Being 'moved' to CL1. The new contract overlaps...extended too...?!?

    I've been working for a government agency for a couple of months now, under a contract which previously passed an IR35 contract review. This contract runs out in about 7 weeks.

    Over the past few weeks there was news of me and others working via the same recruitment agency having our contracts changed - such that we were now effectively working under the CL1 agreement. Paid via the agency still, but under CL1.

    The weird thing about all this is that my contract, outside IR35, is all ok until it expires. Yet I've been asked to sign the new CL1 version. It was a pretty 'soft' ask by the recruitment agency. No deadline.

    This new contract, rather surprisingly, has a start date of about 2 weeks ago, and an end date which effectively extends my contract by 5 months, on the same rate.

    I have several issues with this:
    a) My current contract is outside IR35 and all good for another 7 weeks, so I see no point in signing a new one which might be inside IR35.
    b) How can I sign two contracts which overlap with each other anyway?
    c) Forwarding me an extended contract seems a pretty good way of skipping the entire contract renegotiation process. At my interview we both agreed that the rate on offer was below my market rate and there was the possibility of this being increased following a successful initial contract period.

    Given that it will cost money to get the new contract reviewed, I see no incentive right now to do anything. Nobody at the client has asked me about signing a new contract, just the recruitment agency. To be honest from what I've heard the whole move to CL1 has not gone smoothly and left quite a few people confused.

    Me included.

    So my current thinking is keep working as I've done until we get close to the end of my contract, then initiate discussions around the future if the client doesn't beat me to it - at which point I'll get the new contract reviewed. There doesn't seem any point right now.

    Any thoughts? Strange one this.

    #2
    You wouldn't happen to be near Warrington would you? There is quite a lot of disscusion already on here about CL1 and the old (I think) CIPHER framework. Have a search and see what others have said. I must admit I don't remember anything about being asked to re-sign mid contract.

    If I were in your shoes I would ring the agent back and have a good chat about it and see what they know.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Originally posted by ForBajor View Post
      a) My current contract is outside IR35 and all good for another 7 weeks, so I see no point in signing a new one which might be inside IR35.
      If the new contract puts you inside IR35, how confident are you that the current one (and working practices) would stand up to any examination by HMRC? What is it about the current working practices which puts you outside IR35, that would disappear under the new contract?

      Originally posted by ForBajor View Post
      b) How can I sign two contracts which overlap with each other anyway?
      The second would supersede the first.

      Originally posted by ForBajor View Post
      c) Forwarding me an extended contract seems a pretty good way of skipping the entire contract renegotiation process. At my interview we both agreed that the rate on offer was below my market rate and there was the possibility of this being increased following a successful initial contract period.
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