Personal Service Company In Contract

[Contreras]

Recently secured a new contract but having some fun and games with the contract wording. Its via an Agency so being imposed as a 'standard contract'.

It poorly written but not withstanding that following a contract review there was a suggested change as the word 'temporary worker' is used throughout.

The reviewer suggested replacing the word Temporary worker with the word contractor. But the agent have come back and suggested temporary worker is replaced with 'personal service company' throughout instead.

Does this have any implications? Never seen the word Personal Service Company on a contract before.

Any views from the good and the great? Emailed the contract reviewer and await a response.

Any update to report? I'm curious what the reviewer's opinion was re. use of the terms "PSC" vs. "Contractor".

[TheFaQQer]

Ask the agency for a legal definition of PSC. Since there is no formal legal definition (just HMRC using the term), then if they are going to include it in the contract, you should make sure that there is a definition of what the term means included in the contract.

I'd replace their suggestion with Contractor or Consultant or something similar.

[DaveB]

Hi,

Wonder if you can offer some assistance.

Recently secured a new contract but having some fun and games with the contract wording. Its via an Agency so being imposed as a 'standard contract'.

It poorly written but not withstanding that following a contract review there was a suggested change as the word 'temporary worker' is used throughout.

The reviewer suggested replacing the word Temporary worker with the word contractor. But the agent have come back and suggested temporary worker is replaced with 'personal service company' throughout instead.

Does this have any implications? Never seen the word Personal Service Company on a contract before.

Any views from the good and the great? Emailed the contract reviewer and await a response.

Many thanks

If this is connected to the Public Sector and you are contracting through Capita then the contract in it's current form is being re-written. The current version is a bag of spanners as far as IR35 is concerned and there is no way it would be classed as anything but IR35 caught. See this article on the PCG website:

https://www.pcg.org.uk/news-events/n...-public-sector

It will take more than just changing the references to Temporary Worker to sort it out.

[Contreras]

Neither "Personal Service Company" or "Temporary Worker" have statutory definition in law.

Personal Services, like it or not and legally defined or not, is what pretty much all of us do. I'd be less concerned with the term "PSC" as it inherently implies a business relationship. Temporary Worker might be inferred to mean that it's the individual being engaged and is presumably what the reviewer wants to avoid.

Quite why the agent thinks they know better one can only guess. You've already stated what you are happy to sign so why create obstacles? "TW" or "PSC" are OK but "Contractor" isn't, huh? Perhaps they are trying to be helpful or appear knowledgeable.

My immediate reply to the agent (without waiting for a 2nd review) would be along the lines of "Thanks for the suggestion but we'll do it my way."

[Boo]

It poorly written but not withstanding that following a contract review there was a suggested change as the word 'temporary worker' is used throughout.

The reviewer suggested replacing the word Temporary worker with the word contractor. But the agent have come back and suggested temporary worker is replaced with 'personal service company' throughout instead.

My contracts use the term "The Consultancy" to describe MyCo.

I would not accept 'personal service company' instead and would ask them not to use it myself.

Boo

[v8gaz]

Thanks

I have just thought I would get the views of other consultants whilst I await a response.

If you are concerned, it might be worth pointing out that PSC has no basis in law and probably shouldn't be referred to in a contract.

[Progressivepm]

Any views from the good and the great? Emailed the contract reviewer and await a response.

Many thanks

Thanks

I have just thought I would get the views of other consultants whilst I await a response.

[northernladuk]

If you have had your contract reviewed by a specialist why not go back and ask them?

[Progressivepm]

Hi,

Wonder if you can offer some assistance.

Recently secured a new contract but having some fun and games with the contract wording. Its via an Agency so being imposed as a 'standard contract'.

It poorly written but not withstanding that following a contract review there was a suggested change as the word 'temporary worker' is used throughout.

The reviewer suggested replacing the word Temporary worker with the word contractor. But the agent have come back and suggested temporary worker is replaced with 'personal service company' throughout instead.

Does this have any implications? Never seen the word Personal Service Company on a contract before.

Any views from the good and the great? Emailed the contract reviewer and await a response.

Many thanks