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Concerning Off-Payroll clause in Contract

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  • TwoWolves
    replied
    It's an April get-out clause. Either they remove it or define it.

    Leave a comment:


  • Cirrus
    replied
    When I read it, I took it to mean "If we decide to put you inside IR35, we will no longer give you your daily rate but instead give you your daily rate minus statutory deductions". However I agree it is unnecessarily imprecise.

    Leave a comment:


  • mharris
    started a topic Concerning Off-Payroll clause in Contract

    Concerning Off-Payroll clause in Contract

    Hi there, my first post here. Long time lurker, but this is the first time I have had cause to post and ask a question.

    I am just about to sign a new contract and I noticed a concerning clause that stood out as needing some attention.

    No variation or alteration to this Agreement will be valid unless the details of such variation are agreed between Employment Business and Contractor and set out in writing and signed by both parties save Employment Business may vary the Off-Payroll status and accordingly vary Contractor fee during Assignment to fulfil its statutory duty.
    Now to paraphrase, my initial interpretation of this is: "In a change of Off-Payroll status, we can choose a new Contractor fee for you"
    Throughout the contract, "Contractor Fee" relates to my daily rate.

    If my understanding is correct, then this seems wholly unreasonable that they should be able to change my daily rate without my agreement.
    Also, I'm not sure I follow the logic behind such a clause.. In that a change to off-payroll status would potentially change the tax due on my daily rate, but it would not change the underlying agreed rate itself.

    Am I misunderstanding something here? I'm going to attempt to negotiate the removal (or modification) of the second part of the clause, but just wanted some feedback before I do so.

    The contract is private sector, outside IR35 (for now).

    Cheers all.

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