Contractor to Permanent, redundancy provisions?
Contractor to Permanent, redundancy provisions?
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Discussion

CAPP0

Original Poster:

20,881 posts

234 months

Monday 17th November 2014
quotequote all
I have it in my head that if you work for a company as a contractor and subsequently take a perm position with them, then if you are made redundant the law provides that you are entitled to whatever redundancy offer is made for the whole term of your service, including the contractor period? So, if someone joined a company as a contractor in January 2007, went permanent in January 2008, and was made redundancy in January 2015, they would be entitled to 8 years redundancy. Can anyone confirm, and if so point me at the relevant legislation please?


TooLateForAName

4,935 posts

215 months

Monday 17th November 2014
quotequote all
I think you are right if someone goes from a temp or part time employment to full time employment.

Could you clarify your use of the term contractor? To me that implies someone working through a limited company and I don't think the redundancy would apply in htat case.

Amused2death

2,526 posts

227 months

Monday 17th November 2014
quotequote all
Can't help on the specific question, but I thought entitlement and payment of redundancy only kicks in from year 3?

pherlopolus

2,189 posts

189 months

Monday 17th November 2014
quotequote all
wished it did, I'd have just got an extra 3 years worth of service contributions....

CAPP0

Original Poster:

20,881 posts

234 months

Monday 17th November 2014
quotequote all
TooLateForAName said:
I think you are right if someone goes from a temp or part time employment to full time employment.

Could you clarify your use of the term contractor? To me that implies someone working through a limited company and I don't think the redundancy would apply in htat case.
Yes, someone who goes in as a contractor/consultant, working through an agency but as a limited company themselves, who then gets asked by the client to take a permanent position?

TigerS6

521 posts

281 months

Monday 17th November 2014
quotequote all
Your original contract with the company would have been for a 'contract of services', as opposed to a 'contract for employment'. It does however depend on the wording of the agreement which the company drew up, and which you signed.
But, ordinarily you would not retain continuous service as a contractor --> Staff.
(Temp staff employed directly is different and would retain cs.)

Cooperman

4,428 posts

281 months

Tuesday 18th November 2014
quotequote all
It depends on who deducted the NHI & PAYE payments. If these were deducted and paid by the eventual employer, then the service should be deemed 'continuous' after going 'perm'.
However, if the NHI & PAYE payments were deducted by a 3rd party and were no business of the eventual employer, then there will be no 'carry over'.

CAPP0

Original Poster:

20,881 posts

234 months

Tuesday 18th November 2014
quotequote all
Cooperman said:
It depends on who deducted the NHI & PAYE payments. If these were deducted and paid by the eventual employer, then the service should be deemed 'continuous' after going 'perm'.
However, if the NHI & PAYE payments were deducted by a 3rd party and were no business of the eventual employer, then there will be no 'carry over'.
Great, thanks, that and Tiger's post above clarify for me.

Al U

2,394 posts

162 months

Tuesday 18th November 2014
quotequote all
Are you not at all concerned about IR35 implications? You would struggle to argue that you couldn't of been a permanent employee of the company when you were "providing services" if they subsequently take you on as a permie.

CAPP0

Original Poster:

20,881 posts

234 months

Tuesday 18th November 2014
quotequote all
Al U said:
Are you not at all concerned about IR35 implications? You would struggle to argue that you couldn't of been a permanent employee of the company when you were "providing services" if they subsequently take you on as a permie.
Not relevant to my query, but thanks.