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Accepting 'paid holiday' instead of payment now?

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    Accepting 'paid holiday' instead of payment now?

    I have an interesting story from a colleague and I'm very interested to hear it as I might be joining him soon.
    She started as a subcontractor at the premises of client A on date X.
    She has a contract with company B.
    Due to negotiation politics the contract between A and B was not signed until date x+4 days.
    client A and company B now ask my friend to not submit timesheets for x to x+3 and instead she is to submit timesheets and will be paid when she wants to take some time off.

    Now to me this is wrong in many ways, but in her particular case she needs to take some days off soon anyway. Provided that she agrees to such an arrangement, I still fear there might be negative consequences in terms of:
    -IR35
    -being paid in a few weeks later rather than now
    -morally very questionable

    So what's your take on this?
    Should she keep her own 'real' timesheets and not kick up the fuss about it (that being her first days with company B and client A)?

    #2
    I'm guessing they're asking this for some kind of internal accounting reasons (e.g. it looks bad for somebody to have hired suppliers for a few days without a contract for them to work on). If she kicks back at them saying she'd rather do things by the book, they'll probably back down.

    Comment


      #3
      Originally posted by thunderlizard View Post
      I'm guessing they're asking this for some kind of internal accounting reasons (e.g. it looks bad for somebody to have hired suppliers for a few days without a contract for them to work on). If she kicks back at them saying she'd rather do things by the book, they'll probably back down.
      That's my thinking as well, but with both me and her being unfamiliar with how public sector (not UK really, but co B is UK based and she is too) works, I'm not sure, in a public entity it could really be difficult to change that date and invoice for something in the past?
      Still I guess the burden would be with Co B, I'd guess - they won the tender - it's their agreement that's slipped late, not her?
      One final nail in the coffin is she is supposed to submit three timesheets: client A, co B and recruitment agency C
      I guess they all need to be the same which impacts the public sector client A....

      Comment


        #4
        its quite all right and happens all the time. I have faced it as a client and as a contractor. The first time was when we needed a contractor to work on weekends for a deadline to be met. I would have needed approval from my boss to pay him on weekends. I agreed with him to take time off another week (and still charge time) but not enter any time for the weekends worked. This helped him carve a small holiday out without losing any work days.

        The second time was when I had my timesheets rejected due to the client's fault. The period got closed and I couldnt resubmit those timesheets and wasnt paid for those 2 weeks. The client and I agreed that I would bill for time when i took 2 weeks off.

        Since she is due to take time off it really doesnt matter which week she bills for. If anything it should help IR35 as she is paid for services rendered whioch doesnt match time spent at the desk. but then I am not an expert at IR35.

        What a non issue to fight over. Save your arguments for more important issues.

        Comment


          #5
          Agree with AQ above. This is an agreement to fit process and I do not see as client direction. Being flexible to suit the client could be seen as a good thing for IR35 if argued correctly.

          Either way this is an agreement between you two and could never see the light of day for anyone else to comment on anyway. Just make sure you keep the email with this promise on so they don't argue the toss later though.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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