Contractor Rendundancy Rights?

Spartacus_Mills

Jarndyce wrote: »

It definitely won't. I was answering the OP's hypothetical question about temps, not contractors.

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

I wanted to clarify that aspect for him/her.

heretolearn_2

I think I know where the confusion is coming in here.

People who have worked for a company for more than 2 years are entitled to redundancy payments and that includes temporary workers and those working on a fixed term contract (or on several contracts - I know someone who is on their third 2 year contract for the same company).

However, these are people who are directly employed. Hence some firms getting rid of temps before the 2 year mark, otherwise they have to pay them redundancy money when the contract finishes.

You are confusing employees being on a fixed term or temporary employment contract, with a firm giving the contract to supply a service to another firm. Being on an employment contract doesn't make them a 'contractor' - all employees have contracts.

You are not employed by them so it does not apply to you. They merely engage a Ltd company, through a third party, to provide them with a service. No more related to redundancies/employment rights than their relationship with the electricity supplier.

isplumm

Hi,

Like the OP I have my own limited company & am a IT contractor.

From memory, my understanding was that once you had been working for a company for 2 years, you couldn't claim things like mileage.

So for example I claim from my office to my clients site in london - assumily if i worked for that client for more than 2 years I couldn't.

Mark

LittleVoice

isplumm wrote: »

Hi,

Like the OP I have my own limited company & am a IT contractor.

From memory, my understanding was that once you had been working for a company for 2 years, you couldn't claim things like mileage.

So for example I claim from my office to my clients site in london - assumily if i worked for that client for more than 2 years I couldn't.

Mark

My understanding too. If you have worked at the same locality for two years (or are expected to do so), mileage to and from the place of work is not allowable, nor is payment for your lunch.

ac427

bert&ernie wrote: »

I dont think it is that straight forward. This '2 year rule' seems to be quite common. Probably because companies don't want to risk anyone claiming employment rights. It probably also protects contractors from falling foul of IR35.

There certainly isn't any hard and fast rule that you will automatically be treated any differently in terms of employments rights or taxation after 2 years.

Don't you retain an accountant or lawyer who could advise you? After all, you are the director of a professional services company.

Moneysaving it may be, but I wouldn't expect to get reliable business legal advice, and that is what you are asking for, on a consumer forum like this.

Also, why don't you try ContractorUK.com forums? I would think this is an FAQ over there.

Just admit you did not know the answer and just wanted an excuse for a bit of contractor bashing.

isplumm

ac427 wrote: »

Just admit you did not know the answer and just wanted an excuse for a bit of contractor bashing.

not sure where you thought the person was contract bashing???

Mark

bert&ernie

ac427 wrote: »

Just admit you did not know the answer and just wanted an excuse for a bit of contractor bashing.

Oh, I took the advice I gave to you and worked it out in about 40 seconds.

To be honest, I thought your opening question was quite fatuous really. I've nothing against the majority of contractors, but you come across as the kind who would rather someone else do their job for them. Why do the legwork yourself when you can just go ask a permie eh?

perssy6060

ac427 wrote: »

I certainly do not wish to have it both ways. All i wanted to do is find out what this "2 Years temping and we get rid of you before you become eligable for redundancy" is that i keep hearing about.

Now do any of you know the answer?

Without knowing the context in which you keep hearing about this 2 years business, I would say that this probably refers to temporary staff employed directly by the company on a fixed term contract. Only employees are entitled to redundancy pay. Contractors operating through limited companies are not employees of the company to whom they supply services. And agency workers are not employees of the company to which they have been supplied by their agency.

Agency workers have been known to apply to employment tribunals arguing that they are actually employees of the company they work at through the agency. But I don't think a contractor could get away with this.

ac427

bert&ernie wrote: »

Oh, I took the advice I gave to you and worked it out in about 40 seconds.

To be honest, I thought your opening question was quite fatuous really. I've nothing against the majority of contractors, but you come across as the kind who would rather someone else do their job for them. Why do the legwork yourself when you can just go ask a permie eh?

I'm the kind that asks a question on an open forum seeking advice.