Pay Cut for contractors? Perm staff get pay increase...

[Platypus]

If he is a contractor he needs to start thinking and acting like one. With that mind set and use of terminology he is putting himself in IR35.

Yes yes blah blah but I suspect that general IT bods of the helpdesk variety may not have many options compared to more skilled IT workers. I suspect they are contractors in name but temps in practice.

All I'm saying is, OP might not have the same options that you or I have.

EDIT: Apologies the the OP if my assumptions are wrong, or I sound like a smug git, no offence intended, I was trying to put over another POV

[psychocandy]

FTFY.

WHS.

The person who looks after the beans ultimately decides (i.e. the bean counters). All well and good to kick off and convince the manager that you're invaluable - he might even agree but all to no avail if bean counters arent convinced.

Bean counters wont care if the business goes down the swanee if you leave as long as their beans are lined up properly.

[d000hg]

Refuse to take the cut, if your line manager can convince the bean counters they need you they won't cut it.

FTFY.

[russell]

Refuse to take the cut, if they need you they won't cut it.

[psychocandy]

Pay Cut for contractors? Perm staff get pay increase...

I work for an IT desk for a UK company...

This week we have all been told that the day rate for ALL contractors across the estate esate will be cut by 10% as of the end of June.

This is at the same time as the Permernent staff are having a 2.5% increase in salary due to the cost of living.

All us contractors had our pay increased a few months ago to match AWR etc.


Can the company decrease our pay and then increase the perm staf who complete the same job role?

Is this allowed?

YES. Why not?

How is what the permies are getting any of your business in the first place? And vice versa?

If the client decides that permies get to earn £200K a year, and contractors are now going to get 10p a day it makes no difference. You have two choices ultimately:-

1. Stay
2. Leave

(although usually negotiating for something in between is usually a better idea)

[LisaContractorUmbrella]

If your pay was increased to fall in line with the permies under the terms of the AWR then a pay cut, providing that nothing else has changed, will be a direct contravention of the legislation.

And I agree with D00hg - being inside IR35 does not make you less of a contractor

[d000hg]

How can a contractor work on a help desk? No specific project. Must be inside IR35.

Maybe you should take the time to consider that being inside IR35 is a actually a valid option for a contractor. Being in IR35 isn't some sort of existential failure.

[northernladuk]

If he is a contractor he needs to start thinking and acting like one. With that mind set and use of terminology he is putting himself in IR35.

[SueEllen]

How can a contractor work on a help desk? No specific project. Must be inside IR35.

No necessarily. Malvolio use to give a good example.

But anyway, my reply would be that I was finishing end of June. Unless something better came up in which case I would quit instantly. If they are happy to break the contract, I would be too.

He may not afford to be able to do so.

[escapeUK]

How can a contractor work on a help desk? No specific project. Must be inside IR35.

But anyway, my reply would be that I was finishing end of June. Unless something better came up in which case I would quit instantly. If they are happy to break the contract, I would be too.

[NotAllThere]

Are you a contractor or a temp? If the latter, then you may have some protection. If the former, not a jot.

For contractors, when a rate cut is mooted, one response is to offer to reduce number of hours worked for the same hourly rate, thereby reducing overall cost. Of course, then overtime kicks in. Unless you're more than just an easily replaced resource, however, you either accept the cut or quit.

[DannyTc]

Pay Cut for contractors? Perm staff get pay increase...

I work for an IT desk for a UK company...

This week we have all been told that the day rate for ALL contractors across the estate esate will be cut by 10% as of the end of June.

This is at the same time as the Permernent staff are having a 2.5% increase in salary due to the cost of living.

All us contractors had our pay increased a few months ago to match AWR etc.


Can the company decrease our pay and then increase the perm staf who complete the same job role?

Is this allowed?