3 mth extensions

[boxman]

Hi

Been working with current client for just coming up to 12 months. Client now only offering 3 mth renewals due to "Cable and Wireless precedent concerns".

I'm clearly outside IR35 and have a B&C review contract so I'm not sure on this. Client (large plc) says that this is now corporate policy for contractors to protect them from claims for employment rights.

I've asked for 6 months (there's more than enough work left) and not short of alternative offers (5 yrs C# experience) for 6/9/12 mths.

Is anyone else experiencing this type of renewal policy?

ta

Rob

[malvolio]

Tell them it doesn't matter a damn how long you've been there. One of the key IR35 cases was with a guy that had been with one client 7 years and not found to be an employee. Equally, if you can claim rights after 6/12/24/256 months under the original Ts&Cs, you can claim them on day 1 as well, and you didn't. If they're really worried about employment rights claims, suggest they use B2B contracts rather than ones for disguised employees.

But Human Remains won't listen anyway - they haven't been keeping up and still believe in length of service, location and fairies...

[rootsnall]

Hi

Been working with current client for just coming up to 12 months. Client now only offering 3 mth renewals due to "Cable and Wireless precedent concerns".

I'm clearly outside IR35 and have a B&C review contract so I'm not sure on this. Client (large plc) says that this is now corporate policy for contractors to protect them from claims for employment rights.

I've asked for 6 months (there's more than enough work left) and not short of alternative offers (5 yrs C# experience) for 6/9/12 mths.

Is anyone else experiencing this type of renewal policy?

ta

Rob

Pretty common in my game to do 3 month extensions, I did 2 years of them at my last job. Its neither here nor there really if you reckon there is enough work to keep you going longer.

[The Lone Gunman]

Gently point out to them that the length of contract makes no difference to employment status.

I would also suggest that you point out to them that your rate for 3 months is much much higher than your rate for 6 or 12 months (particularly if you have other offers you are willing to take).

[BoredBloke]

As was pointed out before, HR make stupid rules and it doesn't matter what you say, they will not change them. I hit exactly the same thing at GSK - Astra Zeneca have an 11 month rule - I suspect that they will only do little projects from now on.

[HankWangford]

As was pointed out before, HR make stupid rules and it doesn't matter what you say, they will not change them. I hit exactly the same thing at GSK - Astra Zeneca have an 11 month rule - I suspect that they will only do little projects from now on.

as advised before tell em 3 months is more expensive than 6, whereas 12 months comes with a special double discount!!!

[boxman]

Cheers Guys. Sounds like as usual it's the big PLCs leading the charge to stop the business doing anything just in case something happens. As no-one I've ever met in HR ever knew anything about the business they were in let alone running a business this isn't a surprise.

I agree that B2B contracts are the only way to go but I also agree that HR will never choose to understand this. 3 month contracts also means negotiations start for a possible renewal after about 6 weeks where I am now and it is seriously painful.

More importantly I'm considering the skillset and marketability issues higher than the term or even the money. No point taking a renewal if you're going to fall behind on skills only to find the next contract that much harder to get!

[boxman]

Thanks Denny.

Fair point but it's simpler than that I suspect. They don't know whether you're inside IR35 or not because frankly HMRC assume you are until you fight your corner and prove to them that you are IBOYOA.

I work the hours I want to without direction onsite and at home simply ensuring deliverables are met on time. I also have around 40 private clients that I intermingle with contract work gained over the past 10 years. I'm going to be a long way down the list of possible HMRC targets and besides which I take close to a market salary so they'll have bigger fish to fry with a far greater potential tax take.

By drawing up a simple policy like "no one can stay longer than 11 months" or something easy to follow then they won't get themselves too confused (bless 'em).

[TheFaQQer]

Reciprocate - due to Cable and Wireless precedent concerns, a three month contract includes an additional premium of 20%.

If there is a market for the skills out there, and you're not fussed about staying, then why waste time with a three month extension?

[boxman]

Agreed. This is exactly my approach.