Contracting while on unpaid leave from my permanent employee

[Lion]

I have a short term contract offer although I am already working as permanent. The contract is full time. Could I just take a unpaid leave for 3 month and be back after that without notifying my current permanent employer?

What papers I need to submit to the contracting company?

[SallyPlanIT]

I have a short term contract offer although I am already working as permanent. The contract is full time. Could I just take a unpaid leave for 3 month and be back after that without notifying my current permanent employer?

What papers I need to submit to the contracting company?

You would need to check that your contract of employment allows you to undertake work elsewhere. Often they will have a clause stating that you can not work for similar businesses for 12 months after or during your employment. If you are clear on that point and you did undertake the work, then ask the tax office to split your tax code, otherwise you will lose your allowance and be taxed on the whole amount.

[SueEllen]

Firstly get out your contract of employment and any paperwork that goes with it like an employee handbook. Have a good read through it. Does it state anything that prohibits you from working for another employer, company or competitor while employed by your employer? If it does then you cannot go contracting until you have resigned. Most employment contracts have these clauses in them to prevent employees pulling stunts like you are trying to pull.

Secondly contracts can be extended so they last longer than the 3 month time period. What are you going to do if the contract is extended?

Finally if you think you can get away with it then go over to the CUK Navigation panel on the right over there ---> and click "First Timers" and read all the information under there. Then if you have any questions use the search facility at the top of this page as all questions you have thought of have been asked and answered a few times.

[SueEllen]

You would need to check that your contract of employment allows you to undertake work elsewhere. Often they will have a clause stating that you can not work for similar businesses for 12 months after or during your employment.

A 12 month clause is a restrain of trade regardless of whether you are an employee or own a business. There are only a very few cases where a 12 month anti-competition clause would be valid and then it would have to go before a judge to be enforced. (I've quizzed a few solicitors on this and two top barristers.)

However what the OP is trying to do is will likely full foul of their employment contract simply because they are already employed full-time by an employer.

If you are clear on that point and you did undertake the work, then ask the tax office to split your tax code, otherwise you will lose your allowance and be taxed on the whole amount.

Agreed

[Lion]

In which case can I not work as a freelancer!

[Lion]

Would that contract clause applicable even if I am on unpaid leave? How can a company control my life by restricting what I can or what I cannot do while I am on UNPAID leave. If thats how it work then its more like a slavery than an employment.

[Boo]

In which case can I not work as a freelancer!

Well, you could, but you take on the risk of your current employer finding out and enforcing any contractual clause preventing you.

That could mean they get an injunction prohibiting you from continuing the contract, but realistically it's more likely they will just dismiss you with instant effect. It's pretty unlikely they'd try for any other remedy through the courts, but you would obviously unlikely to get a good reference from them to say the least.

There again, if you succeed as a contractor, who gafs what your present employer thinks ?

Boo

[explorer]

Would that contract clause applicable even if I am on unpaid leave? How can a company control my life by restricting what I can or what I cannot do while I am on UNPAID leave. If thats how it work then its more like a slavery than an employment.

yes, cause you are an employee, even while on leave..the relevant clause will (most likely) contain wordings like "..during the term of the employment...", which means that you cann't take up work anyplace else, in any way, shape or form, whilst still being employed by your employer.

[Wanderer]

Would that contract clause applicable even if I am on unpaid leave? How can a company control my life by restricting what I can or what I cannot do while I am on UNPAID leave. If thats how it work then its more like a slavery than an employment.

Is your employer asking you why you want to take leave or just letting you take time off because things are quiet? If you took a 3 month break to do some charity work helping orphans in a third world country and the boss found out that you took a juicy contract and made loadsa money working in the same line of work as your employer then you might not have much of a case at an employment tribunal...

Conversely, if you employer lets you take time out because business is slow and they don't have any work for you (but don't want to make you redundant) then I think you've got a pretty strong case for being allowed to work while you are on unpaid leave.

You might want to get professional advice from an employment lawyer as there could be a fair amount at stake here.

[northernladuk]

Would that contract clause applicable even if I am on unpaid leave? How can a company control my life by restricting what I can or what I cannot do while I am on UNPAID leave. If thats how it work then its more like a slavery than an employment.

Well I don't know the answer to that contractually but they could quite rightly have a problem if you went working for a competitor/supplier/customer so it isn't just the contract clauses you need to think about.

Your new contract would have to be so far removed from your current employer to avoid this one. If there is even the faintest whiff that you are using your employers skills/processes/knowledge on this next contract then it is a complete no brainer. If you work for IBM and go get a contract at Accenture your screwed whatever the clause is. If you work for IBM and work for the company that supplies the powdered milk to the vending company that has its machines on your site you are still probably in for a rough ride IMO.

It is a very small world out in contracting so this would definately reduce the client base considerably.

I might be talking out of my arse as normal but if I was in your shoes not jeopardising my full time employment in this way would be number 1 priority.

Added to this you are going to get taxed to buggery whatever you do. Ask yourself if the risk is worth the return.