Reply to: Contractors to get sick pay, holiday pay etc

[VBScab]

Am going back into contracting after 8 years in permie and am out of touch.

I would strongly advise against that, unless you already have an offer of a long-term contract on the table for a skill which is in very strong demand.

[Not So Wise]

Unless HMRC says you are an employee at which point you become entitled to 28 days holiday, pension, redundancy, sick pay, car, training... no?

No, HMRC gets to decide your tax obligations/status but in doing so does not actually make you an employee with all the rights that status entails (yes it's rather fecked up, one of the many things about ir35 contractors object to)

[gingerjedi]

No change, you are not an emloyee of the client so client has no obligation towards you

Unless HMRC says you are an employee at which point you become entitled to 28 days holiday, pension, redundancy, sick pay, car, training... no?

[Mich the Tester]

Did I ask for this? I don’t think I did, did I?

[Not So Wise]

What is the current situation with regard to contractors and sick/holiday pay.

Am going back into contracting after 8 years in permie and am out of touch.

No change, you are not an emloyee of the client so client has no obligation towards you

[dspsyssts]

What is the current situation with regard to contractors and sick/holiday pay.

Am going back into contracting after 8 years in permie and am out of touch.

[The Lone Gunman]

This could put the willies up the clients and especially their HR departments so that they become more open to contracts which clearly leave the contractor outside IR35. With IR35 I've always thought that the lack of a financial hit on the end client meant that us little guys could rarely force a change because there was no financial fallout for the end client. If we get caught for IR35 then we pay the tax due. However if caught, then what is there to stop the contractor fighting for these employment related benefits.

The original IR35 was at a cost to the client not us. Rightly in my opinion. The larger corporates that use contractors freaked and used their political leverage to whisper in Golden Clowns ear that it was the contractor who was cheating him not them. SO IR35 was changed.
I said at the time that this was carte blanch for any business to avoid employment law with impunity. I seem to have been wrong on that as the likes of Asda and McDs are not yet insisting on all their staff being contractors, but they will one day.

There has been no incentive for UK clients to work in a proper B2B manner and it has always been my opinion that many of our clients actually want "temployees" but are unwilling to pay for them.

[BoredBloke]

You may be right, but it is another avenue of attack for the PCG.
If the Government deems me to be a temporary employee (hence IR35 applies) then there must be a reasonable argument that law applied to temporary employees should be applied.

This could put the willies up the clients and especially their HR departments so that they become more open to contracts which clearly leave the contractor outside IR35. With IR35 I've always thought that the lack of a financial hit on the end client meant that us little guys could rarely force a change because there was no financial fallout for the end client. If we get caught for IR35 then we pay the tax due. However if caught, then what is there to stop the contractor fighting for these employment related benefits.

[The Lone Gunman]

In your dreams!

Why do you imagine that being "deemed" an employee will entitle you to these rights? I snort with derision at the suggestion!

You may be right, but it is another avenue of attack for the PCG.
If the Government deems me to be a temporary employee (hence IR35 applies) then there must be a reasonable argument that law applied to temporary employees should be applied.

[NotAllThere]

And do you pay yourself sick pay, holiday pay, redundancy? You may soon be forced to.

Er... I pay myself (my company pays me) a salary every month, whether I've been sick, on vacation, on site, or sitting in the pub while pretending to be on site.

[Platypus]

Surely if you are IR35 caught then this legislation will apply.

In your dreams!

Why do you imagine that being "deemed" an employee will entitle you to these rights? I snort with derision at the suggestion!

[The Lone Gunman]

Surely if you are IR35 caught then this legislation will apply.
This is as good an incentive for agents and clients to make sure that we have proper B2B contracts as there has been.

I also pay my salary when I am benched, on holiday or sick.

[d000hg]

This legislation is for temps and has no effect on us Ltd co professionals.

Unless you dump the Ltd and work as a sole trader... or is that not possible?

[Hiram King Of Tyre]

I pay myself a salary while on holiday now. It's myco that looses out as they can't bill the client. Hopefully any new legislation of this nature would point to me being outside of IR35

[Sockpuppet]

Yeah like it takes 2 years to train someone!

As long as they are on "structured" training and its "regular" you can use them as a temp for 2 years.

Boomed.