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Help! If I take a job on a 12-month contract, what would happen if I got p/g?

31 replies

edam · 10/10/2007 12:41

Been sort of accidentally offered a job. Well, I knew it was going to happen but has all moved a bit fast and not sure if I want it, tbh. Anyway, turns out they want someone on a fixed-term contract. Am vaguely planning dc no. 2 in the medium term future. What would happen if I took a fixed term 12 month contract and if I got p/g?

Any guidance gratefully received...

OP posts:
bossykate · 10/10/2007 14:18

here is what DirectGov has to say about it...

..."if you are self-employed for tax purposes, you are normally self-employed for employment rights purposes..."

flowerybeanbag · 10/10/2007 14:24

well that's true, and that's what the IR link says - hence the need to answer the questions to decide whether you are employed or self-employed. For self-employed people who are genuinely self-employed for tax reasons, they would also be genuinely self-employed for employment rights reasons.

But question is, if someone has an employee-employer relationship with a company but provides services though an intermediary limited company rather than being on the payroll, their tax situation is different but I would say their employment rights still stand.

flowerybeanbag · 10/10/2007 17:09

bk have managed to check with an employment lawyer. [obsessive emoticon]

Basically it is the nature of the relationship that is key - if you have an employer-employee relationship (you are controlled by them, work f/t for them, can't get someone else to do the work etc etc, then you do have employment rights regardless of whether you use your own limited company as a vehicle for payment.

bossykate · 10/10/2007 17:41

i'm outside ir35 (which is of course a tax rule) which does also make me self-employed...

but thanks for that info. my next contract could be inside ir35 in which case the employment rights would also follow... hmmm that's quite a big deal from a maternity pov - do companies actually know this???

flowerybeanbag · 10/10/2007 18:41

lots of companies don't. I did some work with a company which used lots of 'self-employed' 'consultants' basically to reduce the headcount and be 'flexible'.

They all counted as employed for tax and employment rights purposes, and the company was quite stunned when one of them wanted maternity pay.....!

beautifuldays · 10/10/2007 19:48

edam - i think as long as you are employed by them for 26 weeks before you get pregnant you will be entitled to SMP, even if you're not you would be entitled to maternity allowance, which i think is 90% of your average earnings, but i may be wrong about that....

congratulations though! what's the job?

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