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Contractor Rendundancy Rights?

I, like many IT contractors work through a limited company. That is i am the sole director of my limited company.

I submit my timesheets and invoices to an agency who then invoice the customer.
Once the agency is paid they tranfer the fees into my company.

Is it true that a contract employee has the same right to redundancy as a company employee after 2 years of employment, even working as above with an agency as an intermediary?

Thanks for any help.
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Comments

  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    Please don't take anything I say as gospel, I'm no expert and this is just my opinion.

    I would say that no, you would not have any rights in your situation. In fact, you as an individual have no relationship at all with the agency, the contract is between the agency and your limited company and (assuming it's similar to how it worked for me when I was a contractor) your invoices are presented on behalf of the company and the agency makes payment to the company not you.

    I believe the rights you mention may occur when an individual is found work by an agency e.g. temping.

    One way to look at it may be to think of holiday pay. When you take holiday you get no money from the client or the agency, when a temp takes holiday they should get paid for that by the agency.
  • SarEl
    SarEl Posts: 5,683 Forumite
    ac427 wrote: »

    Is it true that a contract employee has the same right to redundancy as a company employee after 2 years of employment, even working as above with an agency as an intermediary?
    .

    This is gospel - the answer is no that isn't right. You are self-employed and do not accrue employment rights.
  • ac427
    ac427 Posts: 128 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    I see your point but BP have a 2 year limit on contractors. I presume this is something to do with temp staff gaining employee rights but perhaps only agency temp staff.

    Is self-employment not different from running a limited company you are a director of?
  • Jarndyce
    Jarndyce Posts: 1,281 Forumite
    ac427 wrote: »
    I see your point but BP have a 2 year limit on contractors. I presume this is something to do with temp staff gaining employee rights but perhaps only agency temp staff.

    Is self-employment not different from running a limited company you are a director of?

    You are not even a BP contractor personally though - you work through your company and then through an agency. So BP asks an agency to supply a service, they enlist your company who supply you to the agency, who in turn supply you to BP.

    Sorry but that is about as far removed from an employment contract as it is possible to get.
  • lavidaloca
    lavidaloca Posts: 558 Forumite
    Part of the Furniture Combo Breaker
    You are not self employed as you are a director of your own limited company. You have no "contractor" rights.
  • ac427
    ac427 Posts: 128 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Jarndyce wrote: »
    You are not even a BP contractor personally though - you work through your company and then through an agency. So BP asks an agency to supply a service, they enlist your company who supply you to the agency, who in turn supply you to BP.

    Sorry but that is about as far removed from an employment contract as it is possible to get.

    But most temp staff are supplied by an intermediary. Although they are probably employed by the intermediary for example Reed Employment.

    So exactly what employee rights would you expect to gain after two years temping with a company?
  • Jarndyce
    Jarndyce Posts: 1,281 Forumite
    ac427 wrote: »
    But most temp staff are supplied by an intermediary. Although they are probably employed by the intermediary for example Reed Employment.

    So exactly what employee rights would you expect to gain after two years temping with a company?

    None at the moment.

    In that situation they are an employee of the agency. There is legislation coming in in October which will give Agency workers more rights after they have worked for the same employer for 12 weeks, but even they won't help you as a self-employed contractor.
  • withabix
    withabix Posts: 9,508 Forumite
    ac427 wrote: »
    I, like many IT contractors work through a limited company. That is i am the sole director of my limited company.

    ...and you do this to fiddle your taxes.

    Why do you expect any 'rights'?
    British Ex-pat in British Columbia!
  • ac427
    ac427 Posts: 128 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Jarndyce wrote: »
    None at the moment.

    In that situation they are an employee of the agency. There is legislation coming in in October which will give Agency workers more rights after they have worked for the same employer for 12 weeks, but even they won't help you as a self-employed contractor.

    Thank you, i know none of this benefits me (no pun intended) and I realise the temp working in the last scenario, would be an employee of the agency.
    I just want some clarification on this 2 years equal rights for temporary workers.
  • ac427
    ac427 Posts: 128 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    withabix wrote: »
    ...and you do this to fiddle your taxes.

    Why do you expect any 'rights'?

    My taxes are order thank you very much. Perhaps you are one of those bad contractors i have heard about?
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