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Awkward situation at work re taking on new staff

6 replies

Birdie80 · 09/03/2013 12:07

Hi hope someone can help me with advice , more of a moral issue than a legal one as I know I'm right!

Im middle mamagement in a medium sized organisation. I have recently been given a budget to recruit 2temporary staff members...only I've been told they have to be self employed contractors. I've looked at HMRC guidance and it seems completely clear to me thry would be employees, not contractors as I would decide how, when, where they work, their hours and I would supervise/check their work. This type of job is always as an employee and its really common to have temporary staff due to the nature of the work.

However my managers are adament we have to make the person self employed and seem to get quite irritated with me when I pointed out the rules. I'm worried that if I try to discuss it ant more I will end up in trouble, and all for roles that haven't been created yet. I don't really want to be complicit in this, but if I realistically don't have a choice, could I be held liable or is it the company?

I do intend to leave eventually, hopefully to work for a more ethical company, but it's difficult at the moment for various reasons amd I do love my job (fortunately on a day to day basus I have very little to do with the people who run the company), but for now I feel like I'm being backwd into a corner of not treating the people who work for me well.

So what I'm really asking is - what would you do?

OP posts:
ItsAllGoingToBeFine · 09/03/2013 12:13

You can't do want your managers ask - they are asking you to break the law.

Alternatively, make sure you have put your argument in writing to your managers. Advertise for the position asking for self employed people who will obviously be employed iyswim.

I assume you will be advertising externally so once the advert is out there tip off HMRC.

Only thing is, you may still get into trouble as you knew it was illegal...

Sorry, no help at all. Legally and morally you can't do what they ask, but you want to keep your job.

Birdie80 · 10/03/2013 11:49

Thanks ItsAllGoingToBeFine (I wish it was!) Tbh that's exactly what I would say if someone came to me with the dilemma. Problem is, if I keep pushing it it won't change their minds, but will just make them more annoyed with me, which I can't afford right now (just got a hefty mortgage and on the verge of ivf - I'm not sure how many principles I can afford!). Putting my thoughts in writing seems like a good idea though. I'm wondering if I can avoid it entirely in the advert and then HR will sort out the contract. I'm normally the sort of person to stick up for what's right, feeling disappointed with myself at the moment. Sad

OP posts:
Sunshinenow · 10/03/2013 12:00

Hi, I am not an expert and someone will be able to five better advice. But you can employ and independent contractor - it is just that the worker will have to pay full tax and ni, at the same rate as an employee. Thus not breaking the ir35 rules. Alternatively you can go though an agency and get a temp person.

You need to look into it a bit more - it is not necessarily wrong. Good luck with the I've.

Sunshinenow · 10/03/2013 12:01

IVF. Ipad fail.

Bunbaker · 10/03/2013 12:02

I'm not up on employment law, but OH is self employed and works for other companies on a contractual basis on their terms. So he is employed by other people as a freelancer.

OnGoldenPond · 11/03/2013 09:02

IR35 only applies to people who are self employed through their own company. This is because a limited company cannot in law be deemed to be an employee in any circumstances. Any other freelancers that work as sole traders can be determined by the IR to be employees of the company who should be on the PAYE scheme. The IR can then land your company with a large bill for unpaid tax and NI, the freelancer will be treated as having been paid net of tax. It will not be treated by the revenue as breaking the law, just as a failure to pay over tax and NI on time with the consequent late payment penalties.

If you gather evidence to show that your boss made the decision to ignore your advice and ordered that the new employees be taken on as self employed you will have covered yourself. The revenue will levy penallties against the comapny, not you.

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