Paid by the hour or salary - which do you prefer?

[SarahKMW]

We are a small company about to post a new admin assistant job (London W10) which will be 2-3 days a week, hours to fit with school run and no working during school holidays. Before we do, I'd like to ask if people prefer to be paid by the hour for the work they actually do, or salaried (with associated benefits such as pension, etc). As a small employer we can afford to pay more by the hour than as a salary, but we'd love some feedback before we post! Many thanks.

I thought you had to offer a pension scheme anyway?

I'd prefer salaried as at least I know exactly how much I have coming in every month. It might work out less money but it's more reliable

Not if someone is working for you and charging your company on the basis they are self-employed. However, our bookkeeper says that if 80% or more of their total work is solely for our business - then, yes, you're right.

Sorry, new to this forum. My reply was to StealthPolarBear's comment!

Salaried every time.

So your essentially considering using a freelancer over an employee?

Bare in mind your bookkeeper is not quite right - there is a hmrc tool to work through to decide whether they are employed or self-employed.

Personally I'd prefer salaried.

You're, sorry, not your.

We're looking at both options - just asking which one people out there generally prefer!

You can't just decide like that - it's not how it works. Employment status is complicated and there are different considerations for tax purposes and employment purposes (i.e. You can be considered self employed for tax purposes by HMRC but an employment tribunal could consider you employed). What you are suggesting sounds very much like an employer/employee relationship. There is nothing in the role you have outlined that would suggest they are self employed.

You need expert advice from a professional. Asking on an Internet forum like this (where you have no idea who you are talking to and where the "advice" is often wrong) is foolish. If you want professional advice go to a professional. You'll have to pay but it will be cheaper than the hassle and cost of getting it wrong.

Your book keeper is not an employment law expert. Clearly.

PM me if you want a recommendation.

It won't be me I'm recommending btw - I'm too busy at the moment so not taking on ad hoc work :)

Lawks - it's our company and it's up to us how many hours we decide we're going to offer and whether we simply have a bybthe hour freelancer, hire a temp for our busy times, or employ someone on a salaried basis. I wasn't expecting to come on here to be attacked or accused of naivety.

Salaried role every time.

And pp’s are right that the decision whether this is a self employed or employed role is likely to be out of your hands.

If you do it salaried and do it as a % job, so a 30% job might be one day one week and two the next. Also allows you to have extra assistance when you need it and less during school holidays....

I'd prefer salaried.

But you can call it what you like, the employment status of the person you employ is NOT defined by what you choose to call them (employee, freelancer etc).

Please take that attitude to HMRC or an employment tribunal and see how you get on

I suggested your actions were foolish. Not naive. There's a difference.

As a general rule people prefer to be employed in accordance with the law. Where they are an employee they expect full employment rights.

Good luck with your company.

I think most people will prefer salaried as they then have a guaranteed amount each week / month.
You run the risk of people "needing" more hours to do the work specified if you pay hourly.
But as other people have said - unless it's a one off project that you can outsource you are going to have to employ someone however you decide to pay them.

I would prefer salaried, and when I pay people, unless it's my personal assistant, or carer as the word I don't like to use, then I pay salaried. I run a very small organization, and it's much easier to just transfer a fixed amount.

Ok, so previous people in this role have been a) salaried, b) had their own Ltd companies which invoiced us and for whom we were not their sole source of income and c) hired temps through an agency. I do not want to get dragged into discussions about HMRC as that is for another topic. I am not a foolish person and based on some of the comments received so far I am concerned that Mumsnet may well not be the place to advertise any position, let alone one which should be a dream for any return to work parent who needs flexibility.

It would have to be salaried if you are aiming at the school hours market. It's unlikely that the people it would appeal to would want the angst of running a limited company or paying someone else to do their PAYE etc. Unless they are already in that position of course. Salaried, it sounds like an appealing job to me.

I am not a foolish person and based on some of the comments received so far I am concerned that Mumsnet may well not be the place to advertise any position, let alone one which should be a dream for any return to work parent who needs flexibility.

I don't understand your logic there. If you're looking for people without the ability to think critically then I can see your point maybe?

Nobody has said you are a foolish person. What is foolish is asking for advice on a matter than requires people have a good understanding of employment law in a place that does not do exactly that. Does that make sense?

People are trying to be helpful even if you don't like what they're saying.

If it's any help I won't be applying for the type of role you are offering

I have just inboxed you

Have done more research on this website over the past two days. Jobs are advertised as a) Permanent, b) Contract or C) Self-employed. Not one job description (and there are 15 part-time administration roles currently available) goes into the HMRC treatment of that particular role.

I'm paid per hour on a term time basis. I do more hours on occasion to what my contract says. I have been having this debate as I've got a chance to choose which I want.

I like that I know how much I've worked and can do extra work if it's available and i get paid for it at the end of the month however salaries would mean I get the same each month even in school hols. I think it depends how often you might need the person to do extra hours and if you would pay on a monthly top up to the salary. If so salaries with top up would likely be someone's preferred option.