Freelance Employment advice
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Discussion

gibbo37

Original Poster:

77 posts

212 months

Friday 24th May 2013
quotequote all
Just after some advice if possible.

I'm directly employed by a European based company in the UK, and employ a number of staff all of whom are directly employed by the German company to work in the UK.

The company was already established in the UK when I first started with them over two years ago. I was the first person to be directly employed by the company.

I inherited a freelance person, who also used another person on a freelance basis to help out with the workload.
A freelance contract was agreed and signed each year, agreeing to pay for a certain number of hours each month for the two people. The contact clearly states that it is a freelance agreement, and that if either party is unhappy the agreement can be terminated by giving 3 months notice.
Every year a new contract was signed by both parties.

Late last year it was decided that we would rather employ a person to do the role on a full time basis and we agreed to directly employ the second freelance person.

This decision was communicated to the main freelancer, and 3 months notice to end their agreement was given.

However the main freelancer was not happy with this decision, and let's just say things got quite messy. However that person left after 3 months and I thought no more of it.

A couple of months later I receive a letter from an employment tribunal stating that the freelancer is claiming unfair dismissal, and hearing date has been set for late this Summer.
I immediately contacted a solicitor and provided them with a copy of the freelance contract, along with monthly invoices from the freelancer from their company for the work provided.

I have been advised by the solicitor that it may be better to just offer "a without prejudice" sum of money just to get rid rid of the problem as to fight the tribunal could take up to 25 to 30 hours of their time at £250 + VAT an hour!!

What do you think. I don't want to get in to an expensive legal battle, that we could potentially lose.
Could I just turn up to the tribunal without a solicitor and fight the case myself, or would I be eaten alive??

I hope the above makes sense.

Cmof

27 posts

257 months

Thursday 30th May 2013
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Yes, you can defend the action yourself - many small employers do. Tribunals can be very helpful in such circumstances. This case will turn on questions of fact. You will just have to set them out as you understand them before the ET, using documentary evidence.

TooLateForAName

4,924 posts

213 months

Thursday 30th May 2013
quotequote all
You say 'freelance agreement' - what does that mean?

Was this a contract with a ltd company?
did the contract specify the people to do the work? Did they work full time for you?

From what you've said I'd be concered that they are deemed to be employees.

Eric Mc

125,607 posts

294 months

Thursday 30th May 2013
quotequote all
Freelance Employee?

Is that not an oxymoron?

CaptainSlow

13,179 posts

241 months

Thursday 30th May 2013
quotequote all
So what would the knock on consequence be if it were found he was an employee re the tax situation assuming the OP didn't do PAYE?

Eric Mc

125,607 posts

294 months

Thursday 30th May 2013
quotequote all
Tax doesn't seem to be the issue - at the moment.

CaptainSlow

13,179 posts

241 months

Thursday 30th May 2013
quotequote all
At the moment. It may do in due course though.