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Matt Gibson

  • Posts: 2482
Employment Contract
« on: March 12, 2013, 10:33:36 am »
Im looking to put someone on part time, just a couple of days a week. Ive had a guy but he has got full time employment, and another guy i use is going back to Australia.

Whats the deal with employment contracts? Do i need one? I'll be paying him through the books, and i have employers liability insurance. It will be a zero hour contract as the days will be as and when, but is a contract needed by law?


BDCS

  • Posts: 4777
Re: Employment Contract
« Reply #1 on: March 12, 2013, 10:36:24 am »
I'd take proper advice on this one. i have a self employed bloke 2 days a week and that makes life easier

Matt Gibson

  • Posts: 2482
Re: Employment Contract
« Reply #2 on: March 12, 2013, 11:14:20 am »
Yeah i was thinking of going down the self employed route. Might be a lot easier. Does he just invoice you for the days he has worked?

BDCS

  • Posts: 4777
Re: Employment Contract
« Reply #3 on: March 12, 2013, 02:13:57 pm »
Yes - easy

clarkson

  • Posts: 1026
Re: Employment Contract
« Reply #4 on: March 12, 2013, 03:49:21 pm »

 hi matt
 but be careful with the subbie route, if he is only working for you and using your vehicle /kit, tax man doesnt like it.

 they can turn round and say he should have been employed and ask you for back taxes and paye.

 also the not sure about zero hour contracts but you will still be liable for holiday pay on hours acrued.

 there isnt an easy way to get help now, just have to make sure the jobs cover it.

 john

Matt Gibson

  • Posts: 2482
Re: Employment Contract
« Reply #5 on: March 12, 2013, 04:17:47 pm »
Thanks for the info guys..

Clarkson,

Yeah i know about the whole HMRC/Sub contractor thing.. The guy will only be working a few days a week.. apparently there are some loopholes but ill have to look into it further, plus he will be doing other work on other days for himself.. so i should be ok..

Rob_Mac

Re: Employment Contract
« Reply #6 on: March 12, 2013, 04:30:32 pm »
Matt

I have a guy who is self employed, he invoices me but he is also a plasterer and has his own work as well. Makes life so easy.

Good luck

Rob ;D

BDCS

  • Posts: 4777
Re: Employment Contract
« Reply #7 on: March 12, 2013, 04:36:20 pm »
Exactly - mine is a decorator.

Griffus

  • Posts: 1942
Re: Employment Contract
« Reply #8 on: March 12, 2013, 05:24:21 pm »
Self employed much easier all round.

If you go down the employed path you will need a Contract of Employment. This is just the start. You'll also be bound by all the reg's that apply.

Remember the additional costs too, on top of basic pay.

As said, self employed much easier.


clarkson

  • Posts: 1026
Re: Employment Contract
« Reply #9 on: March 12, 2013, 05:26:16 pm »
Matt

I have a guy who is self employed, he invoices me but he is also a plasterer and has his own work as well. Makes life so easy.

Good luck

Rob ;D

hi rob
yes in these cases it would be fine. its if you can find someone in a trade with proper books who has spare few days each week?

if so its great .

hows business?

john

Rob_Mac

Re: Employment Contract
« Reply #10 on: March 12, 2013, 05:34:57 pm »
John

A little slow if I am honest.

I am just finishing off the third quote in two days. I have another two in that are definitely agreed and have just been offered another sizeable job that came about by being reasonable in the pricing on one of the quotes.

We have some ongoing works in Streatham but by this time last year I had cleaned a new build store in Ely.

Not going to worry too much as I have two new customers this year, sorry three new customers and they will make the spend up.

What about yourself?

Rob ;D

Alan McTernan

  • Posts: 574
Re: Employment Contract
« Reply #11 on: March 15, 2013, 08:24:52 pm »
All my guys are PAYE and on contracts, I think it shows that I am committed to them and in return I expect hard work and loyalty (maybe I am a bit daft)

And also as mentioned it is a bit of a grey area with HMRC (don't want them chasing me)

Just my thoughts anyway!!

Cheers
Alan

Griffus

  • Posts: 1942
Re: Employment Contract
« Reply #12 on: March 15, 2013, 10:03:27 pm »
All my guys are PAYE and on contracts, I think it shows that I am committed to them and in return I expect hard work and loyalty (maybe I am a bit daft)

And also as mentioned it is a bit of a grey area with HMRC (don't want them chasing me)

Just my thoughts anyway!!

Cheers
Alan

Hi Alan, it's black and white really.

If they are a genuine subbie then they work for more than you, and this has to stand up should the question arise officially. Those self employed that work for us also require their own UTR and as we work a lot within the Construction Industry they get 20% CIS deducted from all invoices including construction related work.

Alan McTernan

  • Posts: 574
Re: Employment Contract
« Reply #13 on: March 16, 2013, 07:32:04 am »
Hi Ian,

Exterior cleaning is not part of CIS so that's not a problem for me. All my guys work solely for me, it works for me (at the moment) I do use subbies when we are busy.

Cheers
Alan

Re: Employment Contract
« Reply #14 on: March 16, 2013, 09:47:43 am »
All my guys are PAYE and on contracts, I think it shows that I am committed to them and in return I expect hard work and loyalty (maybe I am a bit daft)

And also as mentioned it is a bit of a grey area with HMRC (don't want them chasing me)

Just my thoughts anyway!!

Cheers
Alan

Hi Alan, it's black and white really.

If they are a genuine subbie then they work for more than you, and this has to stand up should the question arise officially. Those self employed that work for us also require their own UTR and as we work a lot within the Construction Industry they get 20% CIS deducted from all invoices including construction related work.

I would never say its black and white !

It is one off the main questions and certainly helps but still depends on other factors if revenue investigate. Do they use their own equipment, are they supervised, also a big question - have they the right to substitute staff (which we all know the answer!)
 I worked as a Ltd company as contractor when this all started yrs ago IR35, reason alot of guys left design eng. If you have had same guy working for you for yrs and his core work is for you he could be deemed to be a permy. I think if you join FSB they will help if your investigated, chances are it would never happen but...

Matt Gibson

  • Posts: 2482
Re: Employment Contract
« Reply #15 on: March 16, 2013, 12:24:03 pm »
Cheers for all the info guys, a bit to think about. As it stands, at the moment i dont have anough work for two guys (me & another) full time, as most of the work i can do myself, So at the moment, self employed would be better. If i put someone on full time, id probably put them through PAYE as like Alan says, its a bit more loyal, although id hate to take the hit on holiday/sick pay  :-\