Full time hours to be split across 2 associated companies. Help?

LeSigh

LeSigh wrote: »

From their point of view..I guess so.

But then I have no idea. Which is my problem.. and trying to find answers is tricky.

I phoned ACAS who just said this was a pickle and in possible breach of my contract (I am contracted part time with verbal agreement to be full time and have been working full time hours recently).

I phoned the local tax office and the girl there just kept repeating "it depends".

So it seems like the experts aren't entirely sure where I stand either?

LeSigh

PS really grateful for all responses, thank you.

Jarndyce

I would be seriously concerned at this arrangement.

At best, it is an indication that the company/group are undergoing serious financial problems. At worst, it is fraud. You need to find out which it is. Nowhere have you said why they wish to change the current arrangement - have you asked?

How long have you been doing full-time hours? Although it was a verbal agreement that you increased your hours, the fact that you have been doing them for some time could mean that in fact this was an agreed variation to your contract.

I would be asking these questions before agreeing to anything.

jfh7gwa

Jarndyce wrote: »

I would be seriously concerned at this arrangement.
...

I would be asking these questions before agreeing to anything.

Exactly, why would the OP even consider agreeing to this unless she can identify some benefit to her. That hasn't been outlined by her employer (and doesn't appear to be clear enough that we can identify it, neither can ACAS/etc)

So the most obvious, immediate benefits must be to the employer.

OP, unless you get a written confirmation/clear awareness about how this abnormal salary setup might benefit you, steer well clear of agreeing to this. No one has done that so far. And it's not your problem to work out a resolution - you've been doing your work in good faith that the employer will renumerate you as needed for your paid work, but you shouldn't have to accept this sort of dodgey setup, which if done wrong could have repurcussions many years later down the line (I've had a bit of a mix up with my NI a few years ago, it was a bit of a nightmare to sort out, and that was from genuine mistakes on the part of the parties involved, not anything scammy).

LeSigh

I will be completing my second month of full time hours at the end of this month.

The plan is for this month's pay to be split across the two companies (I was only asked / told about this yesterday).

I haven't been told why as it was mentioned in passing yesterday afternoon and I have no had an opportunity to ask any questions yet (employer went offsite and is still not available yet).

Also, I would like to be a little more informed about the situation from an impartial point of view before I do speak to the director.

I don't even know what questions I should be asking - if that makes sense? This scenario is completely new to me

Why would this be fraud? Both companies are legit - one is very well established, the other is less than a year old.

LeSigh

jfh7gwa wrote: »

Exactly, why would the OP even consider agreeing to this unless she can identify some benefit to her. That hasn't been outlined by her employer (and doesn't appear to be clear enough that we can identify it, neither can ACAS/etc)

So the most obvious, immediate benefits must be to the employer.

OP, unless you get a written confirmation/clear awareness about how this abnormal salary setup might benefit you, steer well clear of agreeing to this. No one has done that so far. And it's not your problem to work out a resolution - you've been doing your work in good faith that the employer will renumerate you as needed for your paid work, but you shouldn't have to accept this sort of dodgey setup, which if done wrong could have repurcussions many years later down the line (I've had a bit of a mix up with my NI a few years ago, it was a bit of a nightmare to sort out, and that was from genuine mistakes on the part of the parties involved, not anything scammy).

Thank you.
Is this really an abnormal set up? I really curse my laidback and doormat nature and the desire to do anything for an easy life.

I really appreciate your comments. I'm just a bit unsure how to actually tackle this. I can't really say I put this query on a forum and the response is that the arrangement is a bit off...

Ughhh resent this situation

jfh7gwa

LeSigh wrote: »

Why would this be fraud?

Because it's not an accurate representation of the work being performed, it's as simple as that.

It seems to me just skimming the details that it's probably relating to the level of NI contributions...

If you're working 0.5hrs a week for 1 company, and 39.5hrs a week for the other company (based on your half hour comment above), and they want to do things legit, your pay should reflect that split. Not half from one company and half from another. Or, due to the tiny tiny amount of time most employers would lump it as FT employment for your main employer.

Whichever option chosen, half from one and half from another company isn't a reflection of your employment.

LeSigh

Thank you.
It's a bit of an odd set up I guess. Basically the companies do the same thing but for different markets. So I spend most the time doing my role for the main company but when something comes in for the other company, I just do that alongside everything else. So my day contains the odd 5/10 mins here and there (a few times a day) doing something for the other company. I do it all from the same work station etc

Jarndyce

LeSigh wrote: »

I will be completing my second month of full time hours at the end of this month.

In that case what I said about the move to full-time hours being a variation to your contract would not apply - it is not long enough established.

So in practice, you can only rely on your part-time hours. Which means you are not in a very strong position to negotiate or ask questions.

But I would still be very curious as to why they want to do it.

How are the two companies 'associated'? Are either likely to be sold or transferred in the near future? They could be stitching you up by trying to contrive a situation where you are shown to be working 50% for one when in fact you aren't. Just a thought.

zagfles

LeSigh wrote: »

From their point of view..I guess so. I will be on tax code 757L for the main company and BR for the other company.

I think I understand the tax element but not the NI element.
Initially I was told I might pay less NI.. then I was told my wages would be identical and NI contributions would be the same as the companies are associated.

I'm not bothered about paying less NI.. I just want to pay the right amount of NI. I literally cannot find any help on it. Or any calculator for this scenario.

OK, if the 2 jobs were completely separate jobs for completely separate employers with the same wages you quote, say an office job and a pub job for instance, you'd save a vast amount of NI (about £870 a year) compared to a single job with the same total wage, and you would still get the same NI credits. Same for your employers.

But if the jobs are for the same employer then I don't think this applies. My wife had 2 jobs for the same employer and we looked into this - but even though the jobs were completely separate with different contracts and different holidays etc, they were paid on a single payslip and she had to pay full NI.

What about the fact that I literally spend less than 30 mins daily doing work for the associated company. Is it fine to be paid almost my half salary by them?

Sounds dodgy to me - what if the work for the associated company was no longer required, you could get made redundant from that job and save 30 mins a day but only have half your salary for the other :eek:

I'd be wanting a full explaination of the reason for this setup. If you're in a union ask them about it.