Changes in contract durations

**Ardesco** · 7 January 2008, 12:38

Originally posted by nroper View Post

just heard that new legislation came in force around August 2007 which states that contractors are allowed only 10 months employment with a client before having to move on! is this true? anyone have more details? or is this just rumour with no credability?

I would love to see a written legislation that states that a LTD Co is not allowed to provide services to a client for more than 10 months. I would piss myself laughing watching them try to enforce it.....

**ChimpMaster** · 7 January 2008, 12:43

"Rules" like this have been doing the rounds since 2002 if I remember correctly. AstraZeneca were one of the first to try and enforce an 11 month rule, but I think even they gave up.

Some companies fall prey to the whinings of sceptics and begin to fear that contractors will start to demand permie rights after a while. There were contractors who once did this - they need to be shot for starting this debacle.

**XLMonkey** · 7 January 2008, 13:03

no, there hasn't been any such legislation.

individual companies occasionally put in place a policy restricting the length of time that any one contractor/consultant can be in place for, but that's down to the company, not down to any specific law

**malvolio** · 7 January 2008, 13:15

It's also a complete nonsense, if you think about it (which most Human Remains departments clearly don't). If you are eligible for employee benefits after 11 months, you are equally eligible for them after 11 minutes. Duration has no impact whatsoever.

**rootsnall** · 7 January 2008, 13:37

Originally posted by TazMaN View Post

"Rules" like this have been doing the rounds since 2002 if I remember correctly. AstraZeneca were one of the first to try and enforce an 11 month rule, but I think even they gave up.

Some companies fall prey to the whinings of sceptics and begin to fear that contractors will start to demand permie rights after a while. There were contractors who once did this - they need to be shot for starting this debacle.

Only heard on the grapevine but I believe it was at AstraZeneca that some long terms contractors claimed permie rights when they weren't renewed and won the case and got a payout.

**Ardesco** · 7 January 2008, 14:00

Originally posted by rootsnall View Post

Only heard on the grapevine but I believe it was at AstraZeneca that some long terms contractors claimed permie rights when they weren't renewed and won the case and got a payout.

I have heard of only won case where the guy won and that was because his contract was firmly inside IR35. Pissed me off royally at the time, the vast majority of self respecting contractors would never want to be classed as a permie. That's why we do this job.

From what I remember the guy was on something silly like £15/hour and had no skills hence why he wanted to be a permie.

Changes in contract durations