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Holiday pay for contractor

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    Holiday pay for contractor

    Hi
    I am new here so hello to all.
    I have been working directly for a company as a contractor.
    I have an agreed daily rate. Although I have no written contract, I am paid through the books with both PAYE and NI being deducted at source. They also pay employers NI too.
    To date they have not paid any holiday to me or any public bank holidays. I have been working for them for over a year now.

    Am I entitled to be paid for bank holidays and holiday pay too?

    Many thanks for any help.

    #2
    No. Contractors are not entitled to holiday pay.

    Unless their contract says they are.

    You need a written contract.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
    - Voltaire/Benjamin Franklin/Anne Frank...

    Comment


      #3
      Originally posted by JTRM View Post
      Hi
      I am new here so hello to all.
      I have been working directly for a company as a contractor.
      I have an agreed daily rate. Although I have no written contract, I am paid through the books with both PAYE and NI being deducted at source. They also pay employers NI too.
      To date they have not paid any holiday to me or any public bank holidays. I have been working for them for over a year now.

      Am I entitled to be paid for bank holidays and holiday pay too?

      Many thanks for any help.
      If 'they' are paying ERNI and doing ur PAYE etc, then you are an employee not a contractor surely?

      Sounds like you are directly employed but with no holiday pay? Sounds like a right mess, see a solicitor, seems u have all the cards but it's a bit of a legal quagmire.

      U need to act.

      Comment


        #4
        If you're on their books, fully payrolled by the company with no intermediary or invoices I'm not sure you're really a contractor (at least in the way I understand it).

        Are you being paid much the same as people in similar roles or more to reflect the risk that your "contract" can be ended at any time?

        To be honest unless you're on a fairly substantial rate I'd say you're in a worst of all worlds situation with treatment like an employee, but none of the benefits. In the absence of full information I suspect that an employment law expert would term you a full employee and entitled to at least basic employee benefits.

        Stek for the love of god please drop that txtspk U and UR rubbish.

        Comment


          #5
          Originally posted by TykeMerc View Post
          If you're on their books, fully payrolled by the company with no intermediary or invoices I'm not sure you're really a contractor (at least in the way I understand it).

          Are you being paid much the same as people in similar roles or more to reflect the risk that your "contract" can be ended at any time?

          To be honest unless you're on a fairly substantial rate I'd say you're in a worst of all worlds situation with treatment like an employee, but none of the benefits. In the absence of full information I suspect that an employment law expert would term you a full employee and entitled to at least basic employee benefits.

          Stek for the love of god please drop that txtspk U and UR rubbish.
          Sorry Tyke, I really have made the effort as per my more recent posts, honestly! Just I got carried away on this one and forgot.

          I'm near Pudsey by the way, no Merc, I have an Alfa, no strings....

          Comment


            #6
            In these circumstances I think that there would be an implied contract of employment even if one did not actually physically exist, in which case you should be entitled to holiday pay as well as any statutory payments. Even if you considered that you were under a contract for services (working in business on your own account) why was a formal contract not entered into? Have you discussed the issue with anyone at the client site?
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            Comment


              #7
              Originally posted by JTRM View Post
              Hi I am new here so hello to all.


              Originally posted by JTRM View Post
              I have been working directly for a company as a contractor. I have an agreed daily rate. Although I have no written contract, I am paid through the books with both PAYE and NI being deducted at source. They also pay employers NI too.
              <insert alarm-bell-smiley here>

              How do you know they are paying those taxes to HMRC?

              Do you get a payslip showing the deductions? If so, you are on the payroll, you are either an employee or a 'worker' and you are not a contractor. You are entitled to holiday pay. Read this: Understanding your employment status : Directgov - Employment and this: Annual leave and holidays : Directgov - Employment

              Have you registered as 'self-employed' with the tax office? I trust you haven't, because if you have then you have no employment rights, they should not have been deducting tax, and you have tax still to pay.

              If you do not get a payslip showing deductions, they are possibly stealing your tax. Yes, it does happen - there really are unscrupulous employers out there who do that. Think double-glazing businesses. Like: Being paid and payslips : Directgov - Employment

              If they deduct the tax from you and keep it themselves, YOU are still liable to pay it. The taxman NEVER loses.

              Have a good look at this lot: Employment terms and conditions : Directgov - Employment

              Originally posted by JTRM View Post
              To date they have not paid any holiday to me or any public bank holidays. I have been working for them for over a year now. Am I entitled to be paid for bank holidays and holiday pay too?
              Since they are taking the tax off you, you are entitled holiday pay as above.

              It sounds to me your employment status is a special case known as "taking the piss and no longer legal".
              My all-time favourite Dilbert cartoon, this is: BTW, a Dumpster is a brand of skip, I think.

              Comment


                #8
                Sounds more like he is on one of these new contract to perm things a lot of big companies are offering. You come on a 6 month rolling contract they can get not renew at their choice but are obliged to either take you on perm or get rid of you at the two year mark. Paid as permie with none of the benefits.

                I have to say to be working there for over a year and not know the situation you are in is pretty stupid really. Do you not have dialog with your client? Can you not speak to them? Surely they would be the best people to explain your situation to you.

                I would seriously think about going perm as fast as possible, complicated situations that is up to you to manage as you would have to as a proper contractor do not sound like your cup of tea at all. God help you if you wern't on PAYE!
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  Sounds more like he is on one of these new contract to perm things a lot of big companies are offering. You come on a 6 month rolling contract they can get not renew at their choice but are obliged to either take you on perm or get rid of you at the two year mark. Paid as permie with none of the benefits.
                  Not quote "none". Holiday pay is still a legal entitlement to those workers.

                  Originally posted by northernladuk View Post
                  I have to say to be working there for over a year and not know the situation you are in is pretty stupid really.
                  Many of the people on CUK first came here because someone was shafting them. We discuss employment legislation day in day out but many people really do not know their rights and trust their employer. And in this case, the employer is not to be trusted.

                  Abusing someone for not knowing something when they are asking for advice is a cheap shot.
                  My all-time favourite Dilbert cartoon, this is: BTW, a Dumpster is a brand of skip, I think.

                  Comment


                    #10
                    Originally posted by RichardCranium View Post
                    Not quote "none". Holiday pay is still a legal entitlement to those workers.
                    Legal entitlement but not a perk. BUPA run something like this and you can work for 2 years there without any health insurance perks that BUPA offer the full time people. That's the perks I meant.

                    Many of the people on CUK first came here because someone was shafting them. We discuss employment legislation day in day out but many people really do not know their rights and trust their employer. And in this case, the employer is not to be trusted.

                    Abusing someone for not knowing something when they are asking for advice is a cheap shot.
                    I would normally agree but working for a year and not knowing the basics of their situation, particularly around legal entitlements is not clever. At what point does it turn from a cheap shot to a valid statement of fact? 1 year, 5 years? My original comment still stands.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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