Employer trying to make me go self employed

jbrown04

Hi,
Need some advice, I am speaking to ACAS but wanted to see if anyone had any experience in similar issues.
I've worked for a company for nearly 6 years as an employee, it is a very small company with me being the only person employed by them. The company has come into some financial trouble and has said they now need me to be self employed. They want to reduce my hours to around 30 hours a week (down from full time) and want to reduce my pay to £10 per hour, this is a significant reduction and with a baby on the way is not something I can live on.
What are my options here? I can't accept the offer so what would my next steps be?
Any help would be greatly appreciated. 

lisyloo

they cannot sack you without good reason, they would have to make your role redundant which means you would get 5 weeks notice pay, redundancy pay and and holiday paid owed, so you do not have to accept 

comeandgo

If employees become self employed, if HMRC terms of employement do not fit the work pattern, the hourly rate should increase by about 30%, not reduce.    Look on HMRC web sight and you will be able to see if going self employed should even be considered.

Beenie

You cannot be made 'self employed' just like that.
A self-employed person works for various clients, provides his/her own tools, can send another person in their place to carry out the contract. A self-employed person is also responsible for their own tax and NI, no sick pay, maternity leave, redundancy etc.
Resist this suggestion by your employer.