Daily Rate - is this clause normal?

[mace]

Mad to sign that

Agency/client are obviously trying to push it one notch further. Most businesses either work on a fixed fee or hourly basis. I can't think of any other industry that works to permie-style conditions. Any tribunal looking at what you've signed would automatically consider you inside IR35. So you could end up working 45 hours a week and having to pay more N.I. than if you took a proper contract.

[mjshrimpton]

Not sure about the IR35 implications - someone once told me that an hourly rate automatically resulted in the contract being caught by IR35 but they could easily have been talking cr*p.

According to the review by B&C I have had on my current hourly paid contract I am clearly outside IR35 and have been offered the unnecessary meteor insurance like TLC35 insurance on the contracts. This was not even mentioned in the report, and I dont know of any permies at this organisation who are paid hourly, so to my mind it is a mild outside pointer.

So you are right - they were talking cr*p. Or crap.

[TheFaQQer]

Agency is Computer People (Adjilon) who I've been working through quite happily on my previous contract on a hourly rate.

Interesting - my Assignment Agreement with Ajilon says:

Fee rate: £XXX.XX per day
Total weekly hours: N/A Contract is based on 5 professional working days

Normal hours of work:
N/A Contract is based on 5 professional working days

Additional sums payable outside normal hrs:
N/A

There is no mention in the contract of what a working day is, or anything like that, so get the contract negotiated to remove the clause.

[NotAllThere]

Regarding the half-hour for lunch - that's likely to be the minimum. Given the core hours, a 12-2 lunch seems to be quite in order.

Now about PWD. They're asking for potentially an extra 7.5 hours a week. Tell them you'll go ahead with this clause, but you'll split the difference, and insist on a 10% increase on your rate (=3.25 hours ).

Alternatively, explain to the them that of course you'll work the extra hours, but only when notified to the company, in writing, at least 7 days in advance, with option for refusal.

[malvolio]

Agency is Computer People (Adjilon) who I've been working through quite happily on my previous contract on a hourly rate.

Gosh - there's a surprise. Walk away, quickly.

Personally I would never assume a contract is IR35 just because it's an hourly rate, but would be interested to find out what everyone else thinks....

Makes no difference at all. Get paid by the minute if you want, it's nothing to do with how you would be assessed for IR35.

[VectraMan]

If the Personnel provides Services during any Professional Working Day for a period which is less than the required minimum of seven and half (7 and ½) hours, the Contractor will only be entitled to charge the Company for the actual hours worked by the Personnel at a pro-rated hourly rate of the relevant Fee Rate (“Prorated Rate”).

So that's exactly a paid per hour rate. The only difference is that if they buy 37.5 hours off you, they get a bonus 7.5 hours for free.

Only thing I've had like this is <4 hours = 1/2 daily rate, so effetively paid per half day.

[vhadiant]

Do you guys watch your hours? I've always been on daily rate (only been contracting for barely a year but), and don't worry too much on the hours. I'm usually there between 9ish - 6ish. Some days I'll be there longer, some days I'll go home early at 5ish.

I know some contractors are always there from 9 - 7:30 - 8pm sometime even more, but I couldn't bring myself to work that much.

[fridge]

Gosh - there's a surprise. Walk away, quickly.


Makes no difference at all. Get paid by the minute if you want, it's nothing to do with how you would be assessed for IR35.

Could not agree more with that comment Malvolio

[TheFaQQer]

Do you guys watch your hours? I've always been on hourly rate (only been contracting for barely a year but), and don't worry too much on the hours. I'm usually there between 9ish - 6ish. Some days I'll be there longer, some days I'll go home early at 5ish.

I know some contractors are always there from 9 - 7:30 - 8pm sometime even more, but I couldn't bring myself to work that much.

Never work on an hourly rate, so I never watch the hours.

[vhadiant]

Never work on an hourly rate, so I never watch the hours.

Whoops I meant, always work on *daily* rate.