CIS v Employment rights

CIS v Employment rights

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A man works as a sub-contractor (CIS) for the same contractor for 10 years. For the last 4 he has been claiiming to the tax office that he will be retiring anyway so there is no point being made an employee. Strictly speaking he hould have been an employee but both he and the contractor did not want that situation.

However, there is now no work, and he wants to claim that he was an employee and was therefore entitled to redundancy, holiday pay etc.

What is the situation with this? As I say, strictly speaking he should have been classed as an employee and these rights should have been there.
NH

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By thehaggis
29th May 2008 18:28

Cake & Eat It

Nevertheless, Employment Tribunals never cared too much about the employment status for tax (I know of contractors who worked through their own limited company have employment rights from their end user client upheld).

Tribunals use their own criteria, and if it is a clear cut case that he was an employee, then he will have employment rights. But you will need an Employment Law specialist to help.

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By AnonymousUser
30th May 2008 09:14

As much as it erks me ....
if he was in reality an employee (10 years service suggests so) then send him off to the CAB and they will help him file an IT1 with the employment tribunal. What the intention of the parties was at the time never counts for anything in my experience. He will win an unfair dismissal claim (or redundancy if appropriate). The contractor will then get a 'random' PAYE compliance visit from HMRC for the back PAYE on this employee (and other similar ones).

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