Pay Cut for contractors? Perm staff get pay increase...

**NotAllThere** · 9 June 2012, 05:40

Are you a contractor or a temp? If the latter, then you may have some protection. If the former, not a jot.

For contractors, when a rate cut is mooted, one response is to offer to reduce number of hours worked for the same hourly rate, thereby reducing overall cost. Of course, then overtime kicks in. Unless you're more than just an easily replaced resource, however, you either accept the cut or quit.

**escapeUK** · 9 June 2012, 06:05

How can a contractor work on a help desk? No specific project. Must be inside IR35.

But anyway, my reply would be that I was finishing end of June. Unless something better came up in which case I would quit instantly. If they are happy to break the contract, I would be too.

**SueEllen** · 9 June 2012, 15:39

Originally posted by escapeUK View Post

How can a contractor work on a help desk? No specific project. Must be inside IR35.

No necessarily. Malvolio use to give a good example.

Originally posted by escapeUK View Post

But anyway, my reply would be that I was finishing end of June. Unless something better came up in which case I would quit instantly. If they are happy to break the contract, I would be too.

He may not afford to be able to do so.

**northernladuk** · 9 June 2012, 17:30

If he is a contractor he needs to start thinking and acting like one. With that mind set and use of terminology he is putting himself in IR35.

**d000hg** · 9 June 2012, 17:41

Originally posted by escapeUK View Post

How can a contractor work on a help desk? No specific project. Must be inside IR35.

Maybe you should take the time to consider that being inside IR35 is a actually a valid option for a contractor. Being in IR35 isn't some sort of existential failure.

**LisaContractorUmbrella** · 11 June 2012, 08:08

If your pay was increased to fall in line with the permies under the terms of the AWR then a pay cut, providing that nothing else has changed, will be a direct contravention of the legislation.

And I agree with D00hg - being inside IR35 does not make you less of a contractor

**psychocandy** · 11 June 2012, 09:15

Originally posted by DannyTc View Post

Pay Cut for contractors? Perm staff get pay increase...

I work for an IT desk for a UK company...

This week we have all been told that the day rate for ALL contractors across the estate esate will be cut by 10% as of the end of June.

This is at the same time as the Permernent staff are having a 2.5% increase in salary due to the cost of living.

All us contractors had our pay increased a few months ago to match AWR etc.

Can the company decrease our pay and then increase the perm staf who complete the same job role?

Is this allowed?

YES. Why not?

How is what the permies are getting any of your business in the first place? And vice versa?

If the client decides that permies get to earn £200K a year, and contractors are now going to get 10p a day it makes no difference. You have two choices ultimately:-

1. Stay
2. Leave

(although usually negotiating for something in between is usually a better idea)

**russell** · 11 June 2012, 09:19

Refuse to take the cut, if they need you they won't cut it.

**d000hg** · 11 June 2012, 10:09

Originally posted by russell View Post

Refuse to take the cut, if your line manager can convince the bean counters they need you they won't cut it.

FTFY.

Pay Cut for contractors? Perm staff get pay increase...