Disguised contracting

[ittony]

I've got a situation which is potentially the opposite of the so called disguised employment usually of concern to contractors, so maybe this isn't the best place for advice on it, but you never know! Anyway, I've got a decent chunk of work I need to sub-contract over the next month or two, and maybe on an ongoing basis if all goes well. I've got someone who's up for doing it, but for the sake of a quiet life he's expressed an interest in doing it on a employer-employee basis, rather than as a client limited company or sole tradership.

If at this stage I'm not really able to commit to sending a regular amount of work his way, do you think this is something which could be made to work some how? Is it possible to have an employment situation with a fluctuating workload? Could there be small regular part-time component perhaps, with 'overtime' taking this potentially up to full time when required? Like a proper contracting arrangement, I wouldn't expect there to be any obligation on either party on the overtime component.

What does anyone think? Viable, or a bit of a nightmare?

Thanks all, T.

[craig1]

You can have zero hours contracts for casual labour. If you REALLY want to do it this way, pay a few quid and go halves on getting a solicitor to draw up a proper contract.

[Spacecadet]

plus you can sack employees in the first 12 months without being liable for unfair dismissal

[Wanderer]

for the sake of a quiet life he's expressed an interest in doing it on a employer-employee basis, rather than as a client limited company or sole tradership.

His quiet life is going to become your pain in the arse. Don't go putting non-connected people on your own payroll - far too much red tape. Get him setup with an umbrella they will sort out all the admin and legal stuff for you and you can get on with running your business.

[Greg@CapitalCity]

What does anyone think? Viable, or a bit of a nightmare?

Certainly viable, and the zero hrs contract is a good idea. Do make sure you get an employment specialists to help draw up the contract if its your first one - they will raise useful questions that you probably won't have thought of.

True, that taking on an employee does put more onus on you, but its a risk/reward thing. If you think your company will make sufficient profit from the arrangement, then its worthwhile pursuing. If charging your employee out at 110% of actual cost you're just breaking even on a salary basis (with employers NI), 120% and you might cover off holiday/sick pay, and maybe 140-150% you might start to feel like its worthwhile doing.

There is a blog article on our website about using sub-contractors that you might find useful.

[ittony]

Thank you all, very interesting. Warnings notwithstanding, I think the zero hours contract idea might be a goer.

To that end, can anyone recommend a good value supplier of Employers' Liability Insurance?

Thanks.

[Wobblyheed]

His quiet life is going to become your pain in the arse. Don't go putting non-connected people on your own payroll - far too much red tape. Get him setup with an umbrella they will sort out all the admin and legal stuff for you and you can get on with running your business.

Excellent advice - I learned the hard way

[ittony]

Excellent advice - I learned the hard way

Hmmmm.... just when I thought I'd made up my mind! That doesn't sounds good. Anything bad in particular happen, or just general hassle?

[Wanderer]

To that end, can anyone recommend a good value supplier of Employers' Liability Insurance?

Don't forget advice on employment law, workers rights, minimum wage, paternity/maternity pay, sick pay, annual leave, health and safety law, equal opportunities policy, expenses policy etc.

I still say you should put him through an umbrella.