Contract Out an Employee

[jonneale25]

Hi,

If I took on a full time employee on and annual salary and benefits would there be anything stopping me from letting them contract through my business? They will be paid regardless of if they have a contract position or not but the idea would be that they could look for contract work and invoice through my business. Does this have legal implications which I would need to be aware of, I was thinking if this would make me an agency in anyway.

The individual is fully aware of this and happy with the idea as the real idea behind this would be to assist cashflow another project we are working on.

I recognise they could contract direct but they arent in a position to wait 60 days for payment and they'd prefer to be an employee.

Thanks

[WordIsBond]

Several things:
1. Is that really your name? If so, get your user name changed so you aren't revealing your identity to the world for bad people to take advantage of. And edit the above post to take your name off of it as well.
2. I have multiple employees (three full time, several part timers) that I pay through PAYE. I'm finding roles for them or picking off pieces of larger projects to assign to them. Why not? Of course you can do something like this. I'm taking a nice cut of what comes in because I'm taking all the risk of employing them and all the costs involved.
3. Do you know what employment rights are? Do you know what employer responsibilities are? Do you have employer liability insurance? Do you know how to put together a contract of employment? Do you understand that you will have to operate pension AE? Do you and your mate both understand that he'll have to be paid less so that you can retain the money to pay for pension contributions, employer NI, employer liability insurance, and other things as well?
4. Do you know where to look to find out all the things you need to know about employing someone, and are overlooking?

[Fred Bloggs]

I'm impressed that some are finding enough work to take on employees. Well done.

[jonneale25]

Several things:
1. Is that really your name? If so, get your user name changed so you aren't revealing your identity to the world for bad people to take advantage of. And edit the above post to take your name off of it as well.
2. I have multiple employees (three full time, several part timers) that I pay through PAYE. I'm finding roles for them or picking off pieces of larger projects to assign to them. Why not? Of course you can do something like this. I'm taking a nice cut of what comes in because I'm taking all the risk of employing them and all the costs involved.
3. Do you know what employment rights are? Do you know what employer responsibilities are? Do you have employer liability insurance? Do you know how to put together a contract of employment? Do you understand that you will have to operate pension AE? Do you and your mate both understand that he'll have to be paid less so that you can retain the money to pay for pension contributions, employer NI, employer liability insurance, and other things as well?
4. Do you know where to look to find out all the things you need to know about employing someone, and are overlooking?

Thanks for the advice.

1) Is it much different than being on LinkedIn....where I could actually get a load more personal information....I'll accept your advice though and look to change my username, thanks.
3) I am fully aware of employment rights, this isn't a "you and your mate" operation. This is a business opportunity, seemingly you must have started with one person, was that your mate or was that you making a good sound business choice. I have contracts, job descriptions, liability insurance etc all in place and already sub contract other work to other contractors.
4) The only issue I had a concern over was if this in way bringing me into the remit of an agency.

[Fred Bloggs]

Thanks for the advice.

1) Is it much different than being on LinkedIn....where I could actually get a load more personal information....I'll accept your advice though and look to change my username, thanks.
3) I am fully aware of employment rights, this isn't a "you and your mate" operation. This is a business opportunity, seemingly you must have started with one person, was that your mate or was that you making a good sound business choice. I have contracts, job descriptions, liability insurance etc all in place and already sub contract other work to other contractors.
4) The only issue I had a concern over was if this in way bringing me into the remit of an agency.

If the guys have employment contracts, are paid PAYE and get holiday pay, sick pay etc.... Then it sounds more like a developing consultancy business than an agency to me. Good luck.

[Darren at Fox-Bartfield]

Contracts

As a genuine business, there's nothing wrong with looking for additional revenue streams and contracts, standard business practice. Good for you, sounds like you've an opportunity and should take it. Key pointers being as WiB states around employing staff.