Any employment contract experts on here?
Discussion
I know it's cheeky, but I'm after some help with an issue I have with employment contracts I have at the moment.
It's based around anti-competition clauses in my previous contract with an employer and the new ones they (same company) are putting forward in a consultancy agreement they have proposed.
I'd rather do it off line, so if somebody can help I would be very grateful.
It's based around anti-competition clauses in my previous contract with an employer and the new ones they (same company) are putting forward in a consultancy agreement they have proposed.
I'd rather do it off line, so if somebody can help I would be very grateful.
If you are an ex-employee - the inference must be that the new situation is that you will NOT be an employee.
That means, whatever you may think, this new contract CANNOT be an EMPLOYMENT contract.
So, if they want to hire you on a self-employed basis, putting too many restrictions into what you can or cannot do for other "customers" is not going to help your cause with HMRC.
That means, whatever you may think, this new contract CANNOT be an EMPLOYMENT contract.
So, if they want to hire you on a self-employed basis, putting too many restrictions into what you can or cannot do for other "customers" is not going to help your cause with HMRC.
Eric Mc said:
If you are an ex-employee - the inference must be that the new situation is that you will NOT be an employee.
That means, whatever you may think, this new contract CANNOT be an EMPLOYMENT contract.
So, if they want to hire you on a self-employed basis, putting too many restrictions into what you can or cannot do for other "customers" is not going to help your cause with HMRC.
Just re-reading this post and how do I determine that the inference is on me not being an employee? Is the fact that it's headed as a 'Consultancy Agreement' generally enough? It doesn't mention anything along the lines of employment, or duration of employment. It mentions things like competition, rights to IP etc etc.That means, whatever you may think, this new contract CANNOT be an EMPLOYMENT contract.
So, if they want to hire you on a self-employed basis, putting too many restrictions into what you can or cannot do for other "customers" is not going to help your cause with HMRC.
It is CRUCIAL that you find out for sure under what status they intend to hire you. It is important for legal, tax and NI purposes.
The general understanding is that, if they are hiring you as an outside consultant, they do not intend to put you on the books as a normal employee. If you are not an employee, the only alternative is that you must be self-employed.
Now, just because they may want to TREAT you as self employed does not not mean that the Revenue will be happy with this - especially as you seem to be going straight from emplyment with the same orgnisation to self-employment.
Whatever the situation, you need to find out where you stand.
The general understanding is that, if they are hiring you as an outside consultant, they do not intend to put you on the books as a normal employee. If you are not an employee, the only alternative is that you must be self-employed.
Now, just because they may want to TREAT you as self employed does not not mean that the Revenue will be happy with this - especially as you seem to be going straight from emplyment with the same orgnisation to self-employment.
Whatever the situation, you need to find out where you stand.
I'll be hired as a consultant when the demands of the job mean they need additional staff. I'm going to invoice them for my time and I will be responsible for my own tax etc. I've spoken to HMRC this morning and they have helped registered me as self employed (got some more details coming along in the post)
Trying to speak my current tax office to clear up that they are happy I'm contracting for the same company I used to work for, and making sure that anything they require is outlined in the agreement.
ETA: Just spoke to them and they are happy enough, as long as I've registered as self employed.
Trying to speak my current tax office to clear up that they are happy I'm contracting for the same company I used to work for, and making sure that anything they require is outlined in the agreement.
ETA: Just spoke to them and they are happy enough, as long as I've registered as self employed.
Edited by theboyfold on Thursday 19th February 10:13
theboyfold said:
I know it's cheeky, but I'm after some help with an issue I have with employment contracts I have at the moment.
It's based around anti-competition clauses in my previous contract with an employer and the new ones they (same company) are putting forward in a consultancy agreement they have proposed.
I'd rather do it off line, so if somebody can help I would be very grateful.
You can always PM me if you wish.It's based around anti-competition clauses in my previous contract with an employer and the new ones they (same company) are putting forward in a consultancy agreement they have proposed.
I'd rather do it off line, so if somebody can help I would be very grateful.
I cant see why you would want to leave the relatively protected enviroment of being an employee to a self employed consultant, unless their is a huge benefit to you.
There is the issue Eric raises, regarding "control" whish flyies in the face of being self employed.
At present you will have protection from unfair dismissal etc (assuming over 12 months service)
Sounds like a bit of a Sham, given the level of control they are seeking
I have come accross instances where this has been done, then as soon as the Employee turns self employed consultant, the employer dumps them (in doing so saving the needed to go through dismissal or redundancy)
There are a number of Legal and Practical issues to consider, to make sure its the best thing for you, haing carefully considered the risks and rewards.
Nick
TuscNick said:
theboyfold said:
I know it's cheeky, but I'm after some help with an issue I have with employment contracts I have at the moment.
It's based around anti-competition clauses in my previous contract with an employer and the new ones they (same company) are putting forward in a consultancy agreement they have proposed.
I'd rather do it off line, so if somebody can help I would be very grateful.
You can always PM me if you wish.It's based around anti-competition clauses in my previous contract with an employer and the new ones they (same company) are putting forward in a consultancy agreement they have proposed.
I'd rather do it off line, so if somebody can help I would be very grateful.

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