Sub contractors or employees

Sub contractors or employees

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My client has 10 or so subbies.  They seem now to work only for my client.  I've had a chat with the director about the employment status and he agrees that they are really employees.  The director tells them where to go, what to do, how to do it.  They drive there in the company van, use the company tools ...

The subbies are not so keen,  being employed will mean a lower day rate for them.  The client wants me to come in and talk to them and justify what's changed and why they need to make the change now.  They reckon they can find work elsewhere under the same terms as a subbie.

Any help?  I can show them ES- FS2 , the employment status guidance.  How would you approach this?

Replies (2)

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Euan's picture
By Euan MacLennan
29th Oct 2014 13:32

HELP

Quoting "HELP" as the short description of your question does not help anyone - you would not be posting a question in the first place if you didn't want some help!

thomas wrote:

The subbies are not so keen,  being employed will mean a lower day rate for them.  The client wants me to come in and talk to them and justify what's changed and why they need to make the change now.

It depends on how the lower rate for employees is calculated.  If it is merely a reflection that as employees they will get (a minimum of) 5.6 weeks of paid holiday, so that their total annual income remains the same, what is the problem?  And there are all those employment rights such as SSP if they are off work due to sickness, notice and possible redundancy payments to consider.  No tax returns to file and it is not as if they are foregoing the right to claim much in the way of self-employed expenses if they travel in the company van and use the company's tools.

thomas wrote:

They reckon they can find work elsewhere under the same terms as a subbie.

So why don't they now?

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RLI
By lionofludesch
29th Oct 2014 13:44

Employees

Looks to me like the employer thinks they're employees - chances are he's right.

Euan summarises the employee benefits beautifully.

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