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Advice needed - have to change umbrella for new contract
Have been thinking about the OP's situation and I have discovered a slight obstacle to working for 2 umbrella companies at the same time. An umbrella company employee works under an over-arching contract of employment which maintains continuity of employment and creates a series of temporary workplaces under a global contract of services - HMRC's requirements for an over-arching contract include the following:
A definitive list cannot be provided as to what would suffice in relation to mutual obligations in the gaps between assignments. Some examples of provisions which may be present in a contract to support continuing obligations on the part of both the employer and the worker are:
an obligation by the worker to accept and do work and an obligation on the employer to pay a retainer during such periods when work was not offered;
the guarantee by the employer of a minimum number of hours work over a 12 month period would likely provide an obligation on the part of the employer (see ESM2045; a promise by the worker to work exclusively for the employer during the duration of the contract i.e. the worker can not work for anyone else, would be an obligation on the part of the worker;
the requirement for the worker to work when required by the employer would be an obligation on the part of the worker;
the requirement for the worker to accept any assignments given would be an obligation on the part of the worker;
the requirement for the worker to work at any location as directed would be an obligation on the part of the worker.
Because an over-arching contract has to be in place in order for the contractor to claim travel and subsistence expenses I think working for two at the same time may invalidate it
Re "a promise by the worker to work exclusively for the employer during the duration of the contract i.e. the worker can not work for anyone else, would be an obligation on the part of the worker" I doubt that is the full story. Its no different to working for a regular consultancy, being shopped out to various client sites, claiming expenses for all of it (normally claim to be home based so stepping out of the house is legit expenses). And you would be surprised the number of permie staff for consultancies who are able to work additionally for other people. From the obvious stuff like the TA, through to helping out at family shop at the weekend etc. I have never heard of tax man having a problem with this.
Some legit umbrella contracts explicitly allow you to work for someone else at the same time...
Mutuality of obligation is an essential element of an over-arching contract - how would you prove obligation on the part of the worker if they were not obliged to take work offered as they had a relationship with another umbrella company
Originally posted by LisaContractorUmbrellaView Post
Mutuality of obligation is an essential element of an over-arching contract - how would you prove obligation on the part of the worker if they were not obliged to take work offered as they had a relationship with another umbrella company
I dont know, how does it work for permies working for a normal consultancy? As per simple examples above?
I dont know, how does it work for permies working for a normal consultancy? As per simple examples above?
That situation applies to permanent workers rather than workers who are engaged on a series of temporary assignments under an over-arching contract of employment.
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