Subcontracting – temp employee or another contractor.

[thunderlizard]

I would favour option 2 if you want to manage them hands-on, but would consider the other options if you just wanted to hand off the work and let them get on with it.

[2uk]

Option 2 - of course fixed term contracts like this exist. There's loads of fixed 1-year or 2-year employment contracts out there, particularly in the education sector. Problems are

- what happens if the end-customer terminates the contract early - (unlikely that someone would accept a fixed term employment contract with a very short notice period)

Make a fixed contract of 2 months or whatever your contract is. Add a clause that the employee contract is subject to termination should your contract terminate. ( I hope this is possible. Should be , for example under law you are making them redundant , because there is no work )

- you have to handle all payroll and tax.

The accountant does for 20 bucks.

- why would the client pay you a markup just to administer the contract
...so, in summary, would anyone who was any good want to work for you in that way... probably not

They only thing the client cares about is the work being done for the initially agreed rate.

There is an option 3 - subcontract to someone who is self-employed, which can work, particularly for installation/relocation or other very short term pieces of work.[/QUOTE]


I am still researching , but other fellow members don’t think this is a good idea

see http://forums.contractoruk.com/threa...LE+TRADER.html

[XLMonkey]

Option 2 - of course fixed term contracts like this exist. There's loads of fixed 1-year or 2-year employment contracts out there, particularly in the education sector. Problems are
- what happens if the end-customer terminates the contract early - (unlikely that someone would accept a fixed term employment contract with a very short notice period)
- you have to handle all payroll and tax
- why would the client pay you a markup just to administer the contract
...so, in summary, would anyone who was any good want to work for you in that way... probably not

There is an option 3 - subcontract to someone who is self-employed, which can work, particularly for installation/relocation or other very short term pieces of work.

[Epiphone]

Option 1 with a clause not to tap up your client. You can always ask them to identify themselves as "Steve from HisCo representing YourCo" if you're that worried about it.

[2uk]

[2uk]

I identify two possible ways to sub-contract work to someone. It will be good if we can have a little discussion on this.


Option 1.
Hire a contractor through their Umbrella or Ltd. This seems straight orward . The contractor invoice you and that is it. They worry about IR35 . All you have to do is draft a contract with them.

From a marketing perspective however they will be under some other business name, thus your company is not getting credit. This is fine , the purpose is different – you are getting a cut of his wages.

One of the things that could go wrong is when later the sub-contractor decides:

He wants to go direct or skip you. This should be possible to defend against. Putting clauses in the contract similar to the ones in your contract with the Agency.


Option 2

Hire an employee. I need to speak to someone about this. Hope the PCG will have some directions.

Obviously if you are assigning them to a short-term contract , you cannot guarantee their pay after the contract ends. I wonder if such fixed-term contracts exist. In addition to the contract being short-term , clauses like sick pay , pensions need consideration.