Redundancy Question - Self Employed Consultant

glasgowghirl

Hi everyone
I've also posted this in the Small Biz forum but thought someone here might be able to help out too.

I am a partner in a small busines (self employed) and like many businesses at the moment, we are struggling a bit financially and are looking at ways to trim our outgoings.

Anyway, there is a consultant who works with us, also on a self employed basis, who we pay a monthly retainer to - if we were to terminate the (verbal) agreement with this consultant, would we just pay what we owed for this month and that is that - I wouldn't think we would be liable for any redundancy pay etc because they are self employed but just wanted to make sure. We have paid them the retainer for the past 18 months. There is no contract.

Thanks everyone

Roobarb73

Yes I would just pay what you have to under the terms of any contract with her - if you paid her a "redundancy payment" then you would be tacitly accepting that you deemed she was an employee and it could open up all sorts of cans of worms re unfair dismissal not to mention unpaid holiday pay and heavens knows what else.

Ultimately whether someone is a self employed contractor or an employee is for an employment tribunal to decide in the circumstances of any particular case if a claim is made to them (eg if this woman tried to argue she was in fact an employee) but if you are adamant she is not an employee then it is safer to ensure you refrain from any act from which an employment relationship could be inferred