Consultant Contract - One Client - Full Time

captainflashheart

Hi there,

For the last year, I've been employed on a 12 month consultancy contract with one client, 40 hours a week. Though it's a consultancy contract, my contract allows for 20 days paid annual leave. I will not be able to take 5 of the days accrued before the contract ends.

Am I in a position to ask for the untaken leave to be paid? I'm registered as a sole trader.

Thank you for your help in advance and Happy New Year.

Pennywise

captainflashheart wrote: »

Hi there,

For the last year, I've been employed on a 12 month consultancy contract with one client, 40 hours a week. Though it's a consultancy contract, my contract allows for 20 days paid annual leave. I will not be able to take 5 of the days accrued before the contract ends.

Am I in a position to ask for the untaken leave to be paid? I'm registered as a sole trader.

Thank you for your help in advance and Happy New Year.

Employment law won't apply as it's not employment. So, basically, it's all down to the wording of your contract. Without knowing the wording, no-one can help. Also, be aware, that if the client doesn't pay, your recourse would be through the courts, the outcome of which would depend on the wording of the contract too!

captainflashheart

Hi Pennywise,

Thank you for your reply, I'm aware I may have to take it to the courts. The wording is as below. Any advice would be greatly received. Best regards,

Employee shall be entitled to twenty (20) days’ vacation each year during the term of this
Agreement after completion of the 3 month probationary period. The time for such vacation is to
be determined by mutual Agreement between Consultant and employee.

trailingspouse

All this talk of 'employee' and 'probationary period' makes it look to me like you're not really a contractor, but are in fact an employee - which, to be fair, is what you are referred to in the contract.

If you were truly self-employed you would simply say 'Sorry mate, won't be in the week after next'. As a contractor you're paid for every hour/day you work (depending on the wording of your contract), and get nothing if you are on holiday/ill etc.

So it's make your mind up time - either you're an employee, with all the benefits (re holiday pay etc) that come with that. Or you're a contractor, with all the freedom that comes with that. You can't be both. What makes you think you're a contractor?

unforeseen

It sounds like you weren't a contractor in the normal definition but an employee on a 12 month fixed term contract

captainflashheart

Thank you both @trailingspouse and @unforeseen for your replies. My contract is one for consulting services and dictates that I'm responsible for my tax re. HMRC, but also includes the above quote regarding holiday. I very much think it's a standard 'buy at the post office' contract that's been butchered.

I understand it's certainly not a tradition consultancy agreement and I wish I'd been more careful when agreeing, but this is my first non-PAYE relationship with an employer, so I knew no better.

motorguy

captainflashheart wrote: »

Thank you both @trailingspouse and @unforeseen for your replies. My contract is one for consulting services and dictates that I'm responsible for my tax re. HMRC, but also includes the above quote regarding holiday. I very much think it's a standard 'buy at the post office' contract that's been butchered.

I understand it's certainly not a tradition consultancy agreement and I wish I'd been more careful when agreeing, but this is my first non-PAYE relationship with an employer, so I knew no better.

If you're on a day rate and have been getting annual leave out of them, then great. If they chose to pay you the unused annual leave then thats the cherry on the cake. I wouldnt be "taking it to the courts" though.

Are you inside or outside IR35?

Do you pay yourself through a limited company or an umbrella company?

robpw2

captainflashheart wrote: »

Thank you both @trailingspouse and @unforeseen for your replies. My contract is one for consulting services and dictates that I'm responsible for my tax re. HMRC, but also includes the above quote regarding holiday. I very much think it's a standard 'buy at the post office' contract that's been butchered.

I understand it's certainly not a tradition consultancy agreement and I wish I'd been more careful when agreeing, but this is my first non-PAYE relationship with an employer, so I knew no better.

They can put that in the contract but it DOES not mean your automatically self employed

the court would decide on the basis of the whole contract and conditions laid down if you were but things like them refusing you holiday and dictating hours etc could mean your actually employed

TELLIT01

I'm certainly no expert on employment law, but from what I've read over the past months I would have thought that somebody working only for a single employer for an extended period, and effectively having their hours controlled by that employer, would be classed at least as a 'worker' rather than self employed.

motorguy

TELLIT01 wrote: »

I'm certainly no expert on employment law, but from what I've read over the past months I would have thought that somebody working only for a single employer for an extended period, and effectively having their hours controlled by that employer, would be classed at least as a 'worker' rather than self employed.

The answer to that is ..... it depends.

The fact that the O/P is entitled to annual leave suggests its an "agency worker" type arrangement operating within IR35.

If its a contractual !!!! up and hes putting the day rate payments through his LTD co rather than through an umbrella company then he'd then be a contractor.

I've been in a contract for 18 months now for the same organisation. They call me a contractor and treat me as a contractor and i consider myself a contractor however i'm inside IR35 so the payment mechanism is more akin to agency worker. I dont really care what i'm called, as long as they keep paying me my day rate.

sangie595

Sounds to me like nobody knows what they are doing! Based on what's says here, it's an employment contract.