• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Open ended contract (no fixed duration)

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Open ended contract (no fixed duration)

    Has anyone ever been offered an open ended contract?
    i.e. no specified duration, it just continues until terminated (4 weeks notice either side). The project has potential to last 18-24 months.

    Pros:
    1. potential to last a long time
    2. no need for renewals
    3. some mortgage lenders may see it positively as an ongoing contract / more certainty?

    Cons:
    1. IR35 risk? (not sure)
    2. no renewals means no natural prompt to renegotiate rates
    3. other mortgage lenders may think it's risky? (although fixed term contracts usually have the same 4 weeks notice anyway)

    Thoughts welcome, I haven't come across this
    before!

    #2
    An "open ended contract" is also known as a "permanent job"
    …Maybe we ain’t that young anymore

    Comment


      #3
      Originally posted by WTFH View Post
      An "open ended contract" is also known as a "permanent job"
      Which also normally have about a 4 week notice period too...

      Comment


        #4
        Open ended contract (no fixed duration)

        If it's tied in to one project only then I don't see the time being open-ended as a problem. There's certainly no explicit ruling to say a contract has to be time limited to be outside IR35.

        Although... you could be a bit stuck claiming any expenses as you can reasonably expect to be there for more than 24 months.

        IANAL
        See You Next Tuesday

        Comment


          #5
          Originally posted by Lance View Post
          If it's tied in to one project only then I don't see the time being open-ended as a problem. There's certainly no explicit ruling to say a contract has to be time limited to be outside IR35.
          You have got to be kidding right? I'd have a read of a couple of guides. It fails on a number of points.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            You have got to be kidding right? I'd have a read of a couple of guides. It fails on a number of points.
            Never knew that.
            Seems slightly nonsensical though.
            Personally I'd presume an open ended contract means they want someone under MOO anyway so I'd be wary.
            See You Next Tuesday

            Comment


              #7
              Originally posted by Lance View Post
              Never knew that.
              Seems slightly nonsensical though.
              Personally I'd presume an open ended contract means they want someone under MOO anyway so I'd be wary.
              I think you've got MoO wrong as well in that example but an open ended gig messes with MoO, it's got to be D&C and confuses contract for and contract of service up let alone problems with part and parcel that can occur. It 'could' be managed with some very tight paperwork and working practices it the very fact they want it open ended would indicate they don't want to bother.

              We don't have enough detail but start with 'Open ended contract is a slam dunk inside IR35' and work upwards.

              Good point about the 24 month rule though.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Thanks to all for the quick replies so far!

                The contract contains clauses that are clear about things that really matter to IR35, such as control of own time, self direction, not considered an employee, right to substitution etc.

                It's also a serious / legit organisation. So I think they are just trying to be efficient (avoid renewals) and just do the paperwork once. Possibly they also want to lock in the rates.

                Indeed IR35 does not specify a duration. However, staying there a long time (up to 2 years potentially), could make a case for being "part & parcel" of the organisation. At the point , an open ended contract would not help. This is my main concern.

                There is a specific project to be delivered.

                Comment


                  #9
                  Originally posted by Lance View Post
                  Never knew that.
                  Seems slightly nonsensical though.
                  Personally I'd presume an open ended contract means they want someone under MOO anyway so I'd be wary.
                  Lance, can you stop posting on serious questions please, because you're an idiot. Thanks.
                  Clarity is everything

                  Comment


                    #10
                    I think in light of all this you need to convince them to make it a 23 month contract...

                    Comment

                    Working...
                    X